Western Cape Business 2020 edition

Red Tape Reduction Unit

Red Tape Reduction Unit The Red Tape Reduction Unit makes it easier for businesses to thrive in the Western Cape, by growing our economy and creating more jobs. The amount of red tape and bureaucracy faced by businesses when dealing with government restricts economic development and growth. Creating an enabling The Red Tape Reduction Unit makes it easier for businesses to thrive in the Western Cape, by environment for business is, growing therefore, our economy fundamental and creating more to jobs. creating The amount of red tape and bureaucracy faced a competitive economy. by businesses when dealing with government restricts economic development and growth. Research shows that red Creating tape an enabling costs environment South for Africans business R79 is, therefore, fundamental to creating a competitive economy. billion per year. This is equivalent to 6,5% of GDP, or 16,5% of Research shows that red tape costs South the total wage bill in 2003 (Small Africans R79 Business billion per Project year. This is (SBP) equivalent 2005). The amount of red tape and bureaucracy faced Red tape is defined as: by Red businesses tape is defined when dealing as: with government • restricts non-essential economic procedures, development forms, and licences, growth. • non-essential procedures, Creating and regulations forms, an enabling that licences, environment add to the for cost business of is, dealing therefore, with government; fundamental or to creating a • competitive anything obsolete, economy. redundant, wasteful regulations that add to or the confusing cost of that dealing diminishes with the Research competitiveness shows that of the red province, tape costs which South government; or Africans stands in R79 the billion way of per economic year. This growth is equivalent and to job 6,5% creation of GDP, or wastes or 16,5% taxpayers’ of the total time wage and bill money. • anything obsolete, redundant, in 2003 (Small Business wasteful Project or (SBP) confusing 2005). that diminishes the competitiveness Red Red tape tape interferes is defined with: of as: the • • the non-essential ability of businesses procedures, to forms, compete licences, province, which stands in in a and global the regulations way marketplace of that economic add as a to result the cost of of unnecessary dealing with costs government; and/or delays; or • • the anything rate of obsolete, establishment redundant, of wasteful new growth and job creation businesses; or wastes and taxpayers’ time or confusing that diminishes the • the competitiveness sustainability and/or of growth the province, of existing which and money. enterprises. stands in the way of economic growth and remove bureaucratic blockages to make it Red tape interferes with: easier and Red more tape cost-effective interferes with: to do business • the ability of businesses to compete • the ability of businesses in to a compete global marketplace in a as global a result of unnecessary costs and/or delays; • the rate of establishment of new marketplace as a result of unnecessary costs businesses; and • the sustainability and/or growth of existing and/or delays; enterprises. The Red Tape Reduction Unit was established • the rate of establishment of new businesses; and by DEDAT in 2011. Its main objective was to remove bureaucratic blockages to make it • the sustainability and/or easier growth and more of cost-effective existing to enterprises. do business Western Cape. The Unit follows a twopronged approach in tackling bottlenecks in the business environment: • reactive through its response to cases lodged to the unit; and • proactive, which seeks to identify legislation and processes that represent barriers to business or efficiency in government, and designing interventions that cut across an entire industry sector or several processes. Red Tape Reduction Unit Red Tape Reduction Unit in the Western Cape. The Unit follows a twopronged approach in tackling bottlenecks in the business environment: • reactive through its response to cases lodged to the unit; and • proactive, which seeks to identify legislation and processes that represent barriers to business or efficiency in government, and designing interventions that cut across an entire industry sector or several processes. The in outcome the Western of the Cape. interventions The Unit must follows impact a twopronged the cost approach of doing in tackling business bottlenecks in terms of in the on reducing either time, costs or complexity. to 6,5% The Red of GDP, Tape or Reduction 16,5% of the Unit total makes wage it bill easier business environment: To date the unit has dealt with almost 8,000 in 2003 for businesses (Small Business to thrive Project in the (SBP) Western 2005). Cape, by • reactive through its response to cases business and red tape related matters. It growing our economy and creating more jobs. lodged to the unit; and maintains • proactive, a resolution which rate in excess seeks of to its 85% identify target. legislation and processes that represent barriers to business or efficiency in The WCG government, made and Regulatory designing interventions Impact Assessments that cut (RIAs) across standard entire practice industry for sector new or policy and several legislation. processes. Cabinet has approved it as a mandatory requirement for all significant legislation The outcome and policies. of the interventions We are the must first and impact only on province the cost to elevate of doing RIA business to this level. in terms of The reducing Red Tape either Reduction time, costs Unit or has complexity. partnered with To sister date departments the unit has to dealt improve with almost businessfacing business processes. and red This tape benefits related business matters. It 8,000 process maintains improvement a resolution (BPI) rate projects, in excess such of its as 85% the target. Department of Transport and Public Works (tourism signage and abnormal load permit applications) The WCG and Agriculture made Regulatory (export related Impact processes, Assessments permit (RIAs) applications standard and practice auditing). for new Several policy BPI and project legislation. possibilities Cabinet with has national approved it departments as a mandatory are being requirement explored as for well. all significant The legislation potential for and making policies. it easier, We are cheaper the first and and faster only to province do business to elevate in the RIA province to this is level. huge, considering The Red the Tape many Reduction approvals, Unit licences has partnered and job creation or wastes taxpayers’ time and authorisations that businesses need to operate. The Red money. Tape Reduction Unit was established with sister departments to improve businessfacing processes. This benefits business by DEDAT in 2011. Its main objective was to For process more information improvement on the (BPI) Red Tape projects, Reduction such as Unit the please Department visit https://www.westerncape.gov. of Transport and Public Works za/red-tape-reduction/ (tourism signage and abnormal load permit applications) and Agriculture (export related processes, permit applications and auditing). Several BPI project possibilities with national departments are being explored as well. The potential for making it easier, cheaper and faster to do business in the province is huge, considering the many approvals, licences and authorisations that businesses need to operate. The outcome of the interventions must impact on the cost of doing business in terms of reducing either time, costs or complexity. To date the unit has dealt with almost 8,000 business and red tape related matters. It maintains a resolution rate in excess of its 85% target. The WCG made Regulatory Impact Assessments (RIAs) standard practice for new policy and legislation. Cabinet has approved it as a mandatory requirement for all significant legislation and policies. We are the first and only province to elevate RIA to this level. The Red Tape Reduction Unit has partnered with sister departments to improve businessfacing processes. This benefits business process improvement (BPI) projects, such as the Department of Transport and Public Works (tourism signage and abnormal load permit applications) and Agriculture (export related processes, permit applications and auditing). Several BPI project possibilities with national departments are being explored as well. The potential for making it easier, cheaper and faster to do business in the province is huge, considering the many approvals, licences and authorisations that businesses need to operate. For more information on the Red Tape Reduction Unit please visit https://www.westerncape.gov. za/red-tape-reduction/ The Red Tape Reduction Unit was established by DEDAT in 2011. Its main objective was to remove bureaucratic blockages to make it easier and more cost-effective to do business in the For more information on the Red Tape Reduction Unit please visit https://www.westerncape.gov. za/red-tape-reduction/ WESTERN CAPE BUSINESS 2020 20

DEDAT expands Global Entrepreneurship Week to Western Cape Entrepreneurship Month The future of youth entrepreneurship in the Western Cape is bright indeed. As part of Global Entrepreneurship Week, which hosts thousands of events caterering to millions of people, the Department of Economic Development and Tourism has held a series of workshops at Youth Cafés, which focused on ideation, fundraising, and social media optimisation. The aim was to encourage youths in smaller towns to start their own businesses and to promote entrepreneurship as a skill. The week was dedicated to targeting young start-ups in townships and rural areas. The initiative diverged from the usual practice of having “suits-and-ties” teaching business advice to a generic audience. Talks were conducted by experts and business owners who understand “millennial culture”. The power of the workshops rested on the use of minimal technical jargon, colourful, easy-to-follow presentations, and concrete, usable business tips. Participants received tangible help in creating their business plans, checking idea feasibility, and understanding the importance of digital skills and having an online presence in the modern age of business. Long-term support A single visit is unlikely to make a lasting impact on the current youth situation, where work prospects are limited. After engaging with management at the Youth Cafés, the Department of Economic Development and Tourism is looking into options for longer-term support, whereby contact is maintained and visits occur more frequently. A key goal is to move rural economies into the mainstream economy through targeted government support and assistance which creates an enabling environment for businesses to thrive. While such interventions only scratch the surface of the problem, they do provide an excellent basis for gauging the demands and challenges faced by the locals. Thus, November’s events involved a range of activities, from workshops with young start-ups, to recognising the cream of the entrepreneurial crop at the Western Cape Entrepreneurship Expo, Summit and Awards. Youth and start-ups are very much interlinked so more startups need to be equipped with the skills to build SMEs. These workshops include themes such as business ideation, to maximising “likes” through developing a social media plan. We would like you to join the conversation around entrepreneurship, tackling red tape, and supporting the growth of the Western Cape economy. 21 WESTERN CAPE BUSINESS 2020