BUSINESS DEVELOPMENT: DRAFT INCUBATION SERVICES POLICY OUT FOR COMMENT

BUSINESS DEVELOPMENT: DRAFT INCUBATION SERVICES POLICY OUT FOR COMMENT

• 15 November 2025
• Small Business Development
• SA Legal Academy

The Department of Small Business Development has called for input by 5 December 2025 on a draft incubation business development policy framework seeking to lay the foundations for sector-wide:

• ‘standardisation’ (presumably referring to support services)
• ‘quality assurance’ (presumably referring to the enterprises themselves)
• improved competitiveness (presumably referring to the enterprise-specific market place), and
• more effective stakeholder collaboration and co-ordination (presumably referring to support services).

Developed in keeping with 2023 national integrated small enterprise development strategic framework imperatives, the framework seeks to position ‘micro, small, and medium-sized enterprises and co-operatives, co-operative financial institutions, and co-operative banks as key drivers of job creation, economic transformation, and inclusive growth’.

This is according to the document’s introductory section, which also notes that, collectively, these entities fall under the category of ‘small enterprises’ in terms of the definition of that term in the 2024 National Small Enterprise Amendment Act.

Describing the incubation business development system as ‘a complex network’ of stakeholders that includes ‘financial institutions, government agencies, corporations, universities, service providers and communities’, the proposed new policy framework underscores the importance of:

• addressing ‘fragmentation and co-ordination gaps’ (among other things by ‘strengthening partnerships’ between stakeholders and ensuring access to appropriate levels of support)
• ‘enhancing market access’, and
• using ‘innovation and technology to expand access to services, especially in underserved regions’.

Sector-wide ‘high failure rates’ (especially during the early stages of business development) are attributed to the ‘significant challenges’ faced by small enterprises, including ‘limited business acumen’ and ‘restricted access to finance’.

Backdated to 15 November 2025, the draft policy framework appears to have been gazetted well after normal business hours that day.

• draft policy framework
• 2023 national integrated small enterprise development strategic framework
• 2024 National Small Enterprise Amendment Act

Published by SA Legal Academy Policy Watch

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