National Small Enterprise Development Strategic Framework (NISED)

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The National Small Enterprise Development Strategic Framework (NISED) is a comprehensive approach designed to address various challenges faced by Micro, Small and Medium-sized Enterprises (MSMEs) in South Africa.
What are the main aims and objectives?

NISED has several main aims and objectives:

Aims:

  1. Policy Coordination: NISED aims to align and coordinate various policies related to small enterprise development to create a coherent and supportive framework for the sector.
  2. Access to Finance: The framework seeks to improve small enterprises' access to financial resources through mechanisms such as grants, loans, and financial support programs.
  3. Market Access and Support: NISED aims to create opportunities for small enterprises to access both domestic and international markets, and to provide support for marketing their products and services.
  4. Skills Development: The framework emphasizes the importance of skills development and capacity building for small business owners and their employees.
  5. Institutional Support: NISED aims to strengthen institutions that support small enterprises, including business development services and advisory support.

Objectives:

  1. Enabling Environment: To foster an enabling environment for small enterprise development through supportive policies and regulations.
  2. Growth and Competitiveness: To promote the growth and competitiveness of small enterprises, contributing to the overall economic development of the country.
  3. Job Creation: To enhance the contribution of small enterprises to job creation and employment opportunities.
  4. Poverty Alleviation: To support small enterprises as a means of poverty alleviation and economic empowerment, particularly within marginalized communities.

Overall, the main aims and objectives of NISED underscore the government's commitment to supporting small enterprise development and recognizing the crucial role of small businesses in economic growth, job creation, and poverty reduction in South Africa.

How does the program work?

The most recent iteration of NISED is built around four key pillars. 

Pillar 1: well Informed statistical analysis on SMMEs with Continuous Monitoring & Evaluation and Learning (better data). The outputs for this pillar include: 

  • Regular research on SMMEs to identify evidence for better policy
  • Regular publication of SMME growth & performance measures (through the regular publication of the Annual Review of Small Business)
  • Effective targeting & monitoring of public sector funded support to SMMEs (through efficient monitoring of public funded support)

Pilar 2: Reform Policy, Laws & Regulations to Enable SMME Growth & Efficient Governance.

  • Effective policy & efficient governance for SMME growth & employment (Policy development for an enabling environment)
  • Assessment & reform of laws & regulations impacting SMMEs to encourage growth. (Regulatory reviews)
  • Fair & equitable measures for entrepreneurship & early stage enterprise activities.

Pilar 3: Effective support & Services Delivered for SMME Growth (financial & non-financial)

  • Strengthen ecosystems for support of SMMEs (building & showcasing supply to support SMMEs)
  • Targeted sector support (non-generic) to underserved communities
  • (targeting & meeting demand of SMMEs)
  • Ensuring cost effective & accessible support for all SMMEs (cost effective support for SMMEs)

Pillar 4: Coordinated Government with strengthened private sector partnerships for SMME growth

  • Strengthened voice of SMMEs and coordinating support and investment.
  • Partnership outreach for SMME growth
  • Implementation through a coordinated government monitoring and reporting on the outcomes of the NISED.
What is the overall cost?

There is no available information on the costs associated with NISED. 

How was it implemented?

The original National Integrated Small Enterprise Development Strategic Framework (NISED) was introduced in 2008. It was designed as a comprehensive and coordinated approach to address the challenges faced by small enterprises and to promote their growth and sustainability. Since its introduction, NISED has been renewed three times with the most recent iteration being launched in November 2022. 

What impact has been measured?

There is no available information about the impact of NISED on the South African ecosystem. 

What lessons can be learned?

There are always challenges of limited resources where there are more entrepreneurs and the funding resources cannot meet these needs and expectations.

CURATED BY

Edith Vries

South Africa