UPDATE OF SCHEDULE 1 OF THE NATIONAL SMALL … · Final report objective The objective of this report is to: Report back on the quantitative analysis on the definition update for

UPDATE OF SCHEDULE 1 OF THE NATIONAL SMALL

ENTERPRISE ACT (NSEA) TO PROMOTE EMPLOYMENT IN

SOUTH AFRICAFINAL REPORT

2

UPDATE OF SCHEDULE 1 OF THE NATIONAL SMALL

ENTERPRISE ACT (NSEA) TO PROMOTE EMPLOYMENT IN

SOUTH AFRICAFINAL REPORT

Reference Number: CBPEP / Act. 6 / AECOM IDev Europe

Title: Amending Schedule 1 of the NSBA to promote employment/South Africa

Activity Type: Short Term Expert

Consultant: Mr. Brendon Darroll

Final report objectiveThe objective of this report is to:

◊ Report back on the quantitative analysis on the definition update for the NSBA.

◊ Incorporates comments made at a stakeholder workshop on the 14th May 2018

◊ Propose changes to the schedule 1 of the NSBA

Update of Schedule 1 of the National Small Enterprise Act 1

CONTENTS

Introduction ...............................................................................................................................................................2

Background.................................................................................................................................................................3

Methodology for the updating of the schedule ......................................................................6

Research notes and limitations ...............................................................................................................9

Proposed revised schedule options ....................................................................................................10

Possible implications to the schedule update either option A or B .....................13

Annexures ...................................................................................................................................................................14

2 Update of Schedule 1 of the National Small Enterprise Act

INTRODUCTION

This report has been commissioned to update Schedule 1 of the National Small Business Act (NSBA). The last update of this schedule was concluded in 2003. The research conducted in the following report outlines the recommendations in two prior review reports of Schedule 1 (NSBA) concluded by the DTI in 2010 and the Department of Small Business Development (DSBD) in 2017. These two research reports outline proposed methodologies and considerations to be included in the updating of the schedule and recommendations to effect the changes. This report will not detail the rationale to the need for the Schedules updating and will only recommend, having concluded research, the amendment of the Schedule.

The proposed Schedules included in this report have been developed from firm level data captured by SARS and National Treasury. The report recommends updating on both the employment cut offs as well as the turnover cut-offs for SMMEs and recommends to drop the asset level cut-offs for the schedule due to verification challenges. Furthermore this report includes recommendations by stakeholder participants at a workshop held on the 14th of May 2018. These recommendations are highlighted below:

◊ The stakeholders agreed that there is a need to update the schedule of the Act and accepted that there may be limitations to the methodology, however there was consensus that these limitations cannot hold back the process of updating the schedule as it is 15 years outdated.

◊ Stakeholders furthermore highlighted that there is a need to discuss policy related matters that affect SMMEs. It was agreed that the updating of the schedule was a first step to policy related matters moving forward.

◊ Stakeholders highlighted that the choice of Sectoral Industrial Classification (SIC) Code is an important element to the revision of the schedule. However, it was agreed that the use of the ISIC codes in the analysis enables the easy reference to the SIC breakdowns for classification purposes.


BACKGROUND

Schedule 1 of the National Small Business Act (NSBA) of 1996 defines Micro Enterprises, Small, Very Small and Medium. These definitions were last amended in 2003. See table 1 below.

Table 1: Schedule of the small business definition in the National Small Business Act

Sectors or sub-sectors in accordance with the Standard Industrial Classification

Size or class of enterprise

Total full-time equivalent of paid employees

Total annual turnover

Total gross asset value (fixed property excluded)

Agriculture

MediumSmallVery SmallMicro

10050105

R 5 m R 3 m R 0.5 m R 0.2 m

R 5 m R 3 m R 0.5 m R 0.1 m

Mining and quarrying


20050205

R39 m R 10 m R 4 m R 0.2 m

R23 mR 6 mR 2 mR 0.1 m

Manufacturing


20050205

R51 m R13 m R 5 m R 0.2 m

R19 mR 5 mR 2 mR 0.1 m

Electricity, gas and water


20050205

R51 m R13 m R 5.1 m R 0.2 m

R19 mR 5 mR 1.9 mR 0.1 m

Construction


20050205

R26 m R 6 m R 3 m R 0.2 m

R 5 mR 1 mR 0.5 mR 0.1 m

Retail and motor trade and repair services


20050205

R39 m R19 m R 4 m R 0.2 m

R 6 mR 3 mR 0.6 mR 0.1 m

Wholesale trade, commercial agents and allied services


20050205

R64 mR32 m R 6 m R 2m

R 10 mR 5 mR 0.6 mR 0.1 m

Catering, accommodation and other trade


20050205

R13 m R 6 m R 5.1 m R 0.2 m

R 3 mR 1 mR 1.9 mR 0.1 m

Transport, storage and communications


20050205

R26 m R13 m R 3 m R 0.2 m

R 6 mR 3 mR 0.6 mR 0.1 m

Finance and business services


20050205

R26 m R13 m R 3 m R 0.2 m

R 5 mR 3 mR 0.5 mR 0.1 m

Community, social and personal services


20050205

R13 m R 6 m R 1 m R 0.2 m

R 6 mR 3 mR 0.6 mR 0.1 m

Source: The National Small Business Act No. 102 of 1996, as amended in 2003


The 2008/09 study by the DTI, The determination of Revised Business Threshold Values; Based upon an escalation or inflation index, commissioned by the dti reviewing the NSBA definition, found that:

◊ the majority of businesses did not make use of the NSBA definition; ◊ NSBA is not the small business definition that regulates government support

programmes; ◊ contradictions were identified between the NSBA definition and definitions used in

other pieces of legislation; and ◊ the proxies were outdated, complicated to apply, track and verify. ◊ The report further indicated an updated schedule to be adopted in 2009 and inflated

for CPI (6%) for 20131.

Later studies since then, including the 2017, Review and update of South Africa’s Small, Medium and Micro Enterprise Sector Definition report commissioned by the DSBD and conducted by TIPS, identified that there is a need to undertake a regulatory amendment of Schedule 1, where the revision may apply to either the statistical, administrative and/or the legal definitions for SMMEs, ensuring that the definitions are updated, relevant and aligned with the characteristics of SMMEs, thereby ensuring that they can access government support programmes. The intended outcome of the updating of the Schedule would ensure align-ment with the statistical, developmental and legal, monitoring and governance of SMME related programmes and outcomes for the purpose of ensuring the SMME segment of the economy positively contributes to employment and growth. Their findings are listed below, based on the available evidence they recommended that the DSBD should:

1. Maintain the purpose or objective of the definition as a legal and statistical definition, with priority given to the legal definition approach;

2. Update the SIC classifications and thresholds with Statistics South Africa data which are more accurate and based on company surveys;

3. Reduce the proxies to two: employment and turnover;4. Introduce the NIBUS classification for informal businesses;5. Develop guidelines for use of the definition (which should specify inter alia

whether the turnover threshold is pre- or post-sales taxes; and what to do in cases of overlap between proxy thresholds etc.); and

6. Ensure that the NSBA definition is updated every five years and conduct periodic reviews of the application of the definition across government and in the private sector.2

This report consequently does not review the findings of the earlier work conducted by both the DTI and the DSBD. More importantly this report builds on the earlier work conducted and with the use of primary firm level data held by National Treasury from the South African Revenue Services’ firm level tax information to propose an updated Schedule for South Africa3. The purpose therefore is to amend the existing definitions of SMMEs in Schedule 1 of the Act by adjusting for the impact of price inflation and bracket

1 Rand International Capital & Threesixty Consulting (2009), The determination of Revised Business Threshold Values; Based upon an escalation or inflation index. Pretoria

2 TIPS, (2017). Review and update of South Africa’s Small, Medium and Micro enterprise sector Definition. Pretoria.

3 The South African Revenue Service and National Treasury Firm-Level Panel is an unbalanced panel data set created by merging several sources of administrative tax data received during 2015. The four data sources that constitute the panel are: (i) company income tax from registered firms who submit tax forms; (ii) employee data from employee income tax certificates submitted by employers; (iii) value-added tax data from registered firms; and (iv) customs records from traders. These data sets constitute a significant and unique source for the study of firm-level behaviour in post-apartheid South Africa.


creep on SMMEs and addressing which thresholds should be included in the definition of SMMEs, thereby ensuring that entities that are characteristically small, medium or micro are defined accordingly. The updating of the schedule therefore will be conducted for the first time using primary data to ensure greater accuracy in the proposed threshold levels.

Descriptive statistics have been recorded from the South African Revenue Service (SARS) and National Treasury (NT) Firm-Level Panel (SARS-NT Panel), which is an unbalanced panel data set created by merging several sources of South African administrative tax data received during 2015. The four data sources that constitute the SARS-NT Panel are:

(i) company income tax (CIT)4 data from CIT-registered firms who submit CIT forms;

(ii) employee data from employee income tax certificates submitted by employers (i.e. IRP5 and IT3a);

(iii) value-added tax (VAT) data from VAT registered firms; and (iv) customs records from traders5.

This panel data provides a unique source of firm level data to ensure that the recommended updating of the schedule is based on actual firm data recorded by SARS and National Treasury.

The analysis conducted has taken into consideration the earlier findings of the two prior reports mentioned above and includes a review of the firm data based on the current employment thresholds and a revised employment threshold definition of SMMEs. The data has thus been reviewed according to the following definition criteria and analysed in accordance to the employment cut-offs of the current schedule to identify the turnover thresholds of all firms in those cut-offs to update the schedule (See table 2).

Table 2: Current and Proposed employment cut-off (proxies) for statistical analysis

Current definition Employment cut-offs Proposed Change Employment cut-offs

Medium Small Very Small Micro

≤ 200≤ 50≤ 20≤ 5

Medium Small Micro

≤ 250≤ 50≤ 10

The analysis did not include capital stock (assets) as this has been recommended to be cut from the schedule.6 Evidently, the finding by TIPS that the asset proxy is difficult to adminis-ter due to complexities relating to the verification of assets and their actual values is further confirmed in the SARS-NT dataset based on the CIT data. The data recorded lower values to current asset values contained in the schedule. Using the SARS-NT data to verify fixed assets of plant and equipment excluding property to outline a statistically confident representation to assets values in the schedule is problematic due to the high plausibility of tax incentives for various industry’s excluding depreciated assets from the SARS-NT data. Furthermore, the dataset does not exclude property from the assets values contained in the data. For these reasons the asset values have not been included in the updating of the schedule in this

4 For the purpose of the analysis of the Turnover thresholds, Turnover pre-tax has been analysed as this would ensure differentiating characteristics of accounting procedures do not bias the analysis.

5 Pieterse, D., Kreuser, C. F., & Gavin, E. (2016). UNU-WIDER Working Paper 2016 / 42 Introduction to the South African Revenue Service and National Treasury firm-level panel.

6 Capital stock has been reviewed in a preliminary form. The data highlights that the distribution and median for all sectors is significantly below the current schedule. This confirms the recommendations of the TIPS report to not be included in the revised updated schedule.


iteration. Further analysis as well as the likelihood of discrete surveys would therefore be need-ed to verify a true reflection of asset values.

All firms in the SARS-NT dataset have been analysed in accordance with the ISIC codes detailed in Table 3 under Annexure A. Descriptive statistics detailed in Table 4 under Annexure B detail the breakdown of SMME (including very small) as a percentage of all firms reviewed to identi-fy the turnover cut-offs to be amended. The analysis has drawn from information available for 114 000 firms using the current employment definition as well as a proposed change to the employment cut-offs to the definition. Annexure C and D detail the statistical output for the mean, 10th, 25th, 50th, 75th and 90th percentile turnover distribution of the firms in each sector for 2010 to 2014 under the employment cut offs outlined above. This therefore provides the range of turnover distributions for all the sectors analysed to update Schedule 1 of the NSBA.

METHODOLOGY FOR THE UPDATING OF THE SCHEDULE

After careful consideration to the turnover ranges supplied by the SARS-NT data, and with consideration to the panel representing actual firm SARS filings, it is recommended that the proposed turnover cut-offs for Micro, (Very Small), Small and Medium firms represent the 75th percentile of the firms captured in the SARS-NT panel for their prospective size classification. This will ensure that 75% of the firms, excluding the top 25% of outliers, are represented in the new definition cut-offs for turnover and would closely align the distribution of the firms along the Pareto principle. However, as the SARS-NT panel only provides accurate information for the period 2010 to 2014 it is further proposed that a median for each sector and size classification be calculated to highlight an equally distributed range of turnover for the period. This would then allow for a base year ‘2014’ to be recorded. This base year would furthermore require an inflationary adjustment to bring the schedule up to date. Therefore, in order to provide an update of the schedule for the turnover ranges, it is proposed that the median of the 2010 to 2014 75th percentile turnovers be inflated by CPI (6%)7 year on year to calculate the proposed turnover thresholds by year until 2020. Using this methodology to update the schedule will ensure that upper limits of the schedule published is representative of the majority of firms in the sectors and adjusted for inflation. It is important to note that when analysing the SARS-NT panel data, firms reviewed under the Wholesale classification produced very few results for Small and Micro employment cut-offs. For this reason Wholesale as registered in Annexure A (Table 7) ISIC code 46 has not been included in the reported tables below. Notes to this will be explained in the limitations section of this report later.

The following Table 3 records the base year median cut-offs for the different size classifications and adjusts year on year for inflation 6% to determine the sector cut-offs for 2020. All firms recorded in below represent the majority of firms under the employment threshold currently described in the NSBA.

7 See, Rand International Capital & Threesixty Consulting (2009), The determination of Revised Business Threshold Values; Based upon an escalation or inflation index. Pretoria for further detail as to the GDP deflator and CPI/PPI adjustments proposed in the 2009 schedule. 6% while conservative would bring the new adjustment closer in alignment due to the use of primary firm level data in the SARS-NT panel.


Table 3: Current Definition threshold inflated (6%)8

In millions Base year 2015 2016 2017 2018 2019 2020

AgricultureMicro 5,0 5,3 5,6 6,0 6,3 6,7 7,1

Very small 7,0 7,4 7,9 8,3 8,8 9,4 9,9

Small 12,0 12,7 13,5 14,3 15,1 16,1 17,0

Medium 25,0 26,5 28,1 29,8 31,6 33,5 35,5

Mining and quarryingMicro 7,0 7,4 7,9 8,3 8,8 9,4 9,9

Very small 13,0 13,8 14,6 15,5 16,4 17,4 18,4

Small 34,0 36,0 38,2 40,5 42,9 45,5 48,2Medium 150,0 159,0 168,5 178,7 189,4 200,7 212,8

ManufactureMicro 3,5 3,7 3,9 4,2 4,4 4,7 5,0

Very small 11,0 11,7 12,4 13,1 13,9 14,7 15,6Small 35,0 37,1 39,3 41,7 44,2 46,8 49,6Medium 120,0 127,2 134,8 142,9 151,5 160,6 170,2

Electricity and gasMicro 3,0 3,2 3,4 3,6 3,8 4,0 4,3

Very small 11,0 11,7 12,4 13,1 13,9 14,7 15,6Small 45,0 47,7 50,6 53,6 56,8 60,2 63,8Medium 125,0 132,5 140,5 148,9 157,8 167,3 177,3

Retail & wholesale1

Micro 3,0 3,2 3,4 3,6 3,8 4,0 4,3

Very small 7,0 7,4 7,9 8,3 8,8 9,4 9,9Small 18,0 19,1 20,2 21,4 22,7 24,1 25,5

Medium 54,0 57,2 60,7 64,3 68,2 72,3 76,6

ConstructionMicro 4,5 4,8 5,1 5,4 5,7 6,0 6,4Very small 15,0 15,9 16,9 17,9 18,9 20,1 21,3Small 51,0 54,1 57,3 60,7 64,4 68,2 72,3

Medium 120,0 127,2 134,8 142,9 151,5 160,6 170,2

Catering and accommodationMicro 2,0 2,1 2,2 2,4 2,5 2,7 2,8Very small 4,0 4,2 4,5 4,8 5,0 5,4 5,7Small 10,0 10,6 11,2 11,9 12,6 13,4 14,2

Medium 28,0 29,7 31,5 33,3 35,3 37,5 39,7

Transport and storageMicro 3,0 3,2 3,4 3,6 3,8 4,0 4,3Very small 12,0 12,7 13,5 14,3 15,1 16,1 17,0

Small 32,0 33,9 36,0 38,1 40,4 42,8 45,4

Medium 98,0 103,9 110,1 116,7 123,7 131,1 139,0

Financial and business servicesMicro 2,0 2,1 2,2 2,4 2,5 2,7 2,8

Very small 8,0 8,5 9,0 9,5 10,1 10,7 11,3

Small 24,0 25,4 27,0 28,6 30,3 32,1 34,0

Medium 60,0 63,6 67,4 71,5 75,7 80,3 85,1

Community and socialMicro 2,0 2,1 2,2 2,4 2,5 2,7 2,8

Very small 5,0 5,3 5,6 6,0 6,3 6,7 7,1

Small 15,0 15,9 16,9 17,9 18,9 20,1 21,3

Medium 50,0 53,0 56,2 59,6 63,1 66,9 70,9

8 Note: Micro firms refer to those who employ 5 or less employees, Very Small are firms that employ greater than 5 and less than 20 employees, small firms are those that employ greater than 20 employees and less than 50 employees whereas Medium firms are those that employ greater than 50 and less than 200.


Following the same methodology the following Table 4, records the base year median cut-offs for the different size classifications, under the proposed new employment definition, and adjusts year on year for inflation 6% to determine the sector cut-offs until 2020. To note, the proposed employment cut-offs recommended below take into consideration the recommendations by the previous reports to collapse “very small firms” (between 5 and 20 employment) with “small firms”. All firms recorded in below represent the majority of firms under the employment threshold as proposed above.

Table 4: New proposed definition thresholds inflated (6%)

In millions Base year 2015 2016 2017 2018 2019 2020

AgricultureMicro 5,0 5,3 5,6 6,0 6,3 6,7 7,1

Small 12,0 12,7 13,5 14,3 15,1 16,1 17,0

Medium 25,0 26,5 28,1 29,8 31,6 33,5 35,5

Mining and quarryingMicro 8,0 8,5 9,0 9,5 10,1 10,7 11,3

Small 28,0 29,7 31,5 33,3 35,3 37,5 39,7

Medium 150,0 159,0 168,5 178,7 189,4 200,7 212,8

ManufactureMicro 5,0 5,3 5,6 6,0 6,3 6,7 7,1

Small 25,0 26,5 28,1 29,8 31,6 33,5 35,5

Medium 120,0 127,2 134,8 142,9 151,5 160,6 170,2

Electricity and gasMicro 4,5 4,8 5,1 5,4 5,7 6,0 6,4

Small 24,0 25,4 27,0 28,6 30,3 32,1 34,0

Medium 125,0 132,5 140,5 148,9 157,8 167,3 177,3

Retail and wholesale2

Micro 4,0 4,2 4,5 4,8 5,0 5,4 5,7

Small 13,5 14,3 15,2 16,1 17,0 18,1 19,2

Medium 53,0 56,2 59,6 63,1 66,9 70,9 75,2

ConstructionMicro 6,5 6,9 7,3 7,7 8,2 8,7 9,2

Small 36,0 38,2 40,4 42,9 45,4 48,2 51,1

Medium 123,0 130,4 138,2 146,5 155,3 164,6 174,5

Catering and accommodationMicro 2,5 2,7 2,8 3,0 3,2 3,3 3,5

Small 7,5 8,0 8,4 8,9 9,5 10,0 10,6

Medium 28,0 29,7 31,5 33,3 35,3 37,5 39,7

Transport and storageMicro 4,5 4,8 5,1 5,4 5,7 6,0 6,4

Small 24,0 25,4 27,0 28,6 30,3 32,1 34,0

Medium 100,0 106,0 112,4 119,1 126,2 133,8 141,9

Financial and business servicesMicro 3,0 3,2 3,4 3,6 3,8 4,0 4,3

Small 16,5 17,5 18,5 19,7 20,8 22,1 23,4

Medium 60,0 63,6 67,4 71,5 75,7 80,3 85,1

Community and socialMicro 3,0 3,2 3,4 3,6 3,8 4,0 4,3

Small 10,0 10,6 11,2 11,9 12,6 13,4 14,2

Medium 50,0 53,0 56,2 59,6 63,1 66,9 70,9

Note: Micro firms refer to those who employ 10 or less employees, Small firms that employ greater than 10 and less than 50 employees, whereas Medium firms are those that employ greater than 50 and less than 250.


RESEARCH NOTES AND LIMITATIONS

The research conducted to identify the appropriate upper threshold cut-offs for the different firm size classes in the various sectors is based on the population statistical data produced from the SARS-NT panel data. Descriptive statistics have been used to calculate the proposed threshold cut-offs based on the turnover distributions presented using the employment cut-offs as the criterion for the generated statistical output. Due to the employment cut-offs changing between the two options the distribution ( at the various percentiles) of the turnover generated between the two tables above may vary. This is due to the size bands (employment cut-offs) being different to generate the results obtained, as the inclusion of either more or less firms would be analysed in the various iterations of analysis. For this reason, in the proposed schedule options presented below the turnover cut-offs have been adjusted to ensure consistency between the two proposed options.

Furthermore, the analysis of the Wholesale sector as explained above proved to be very difficult due to the concentration of firms at the upper end of employment and very few small firms present in the panel data. The Wholesale sector is an outlier in the statistical cut-offs due to the nature of the trade related to the business activity. See figure below.

Figure 1: AFS Turnover Cut-offs for 2016

Figure 1: AFS Turnover Cut-offs for 2016

Source: Stats SA (2017). Annual Financial Survey 2016

Therefore, the Wholesale Sector (SIC 61 or ISIC 46) has not been included in the tables presented above. Due to the nature of the sector and the business activity involved a higher percentile cut-off threshold has been proposed to update the schedule. This is based on the assumption that the Wholesale sector firms, which have been collapsed into the descriptive statistical output including Retail and Motor trade, are distributed at the upper distribution limits. Therefore, to identify an appropriate cut off for the Wholesale sector the 95th percentile cut off has been used for the combined distribution statistics.


The following tables outline the adjusted for inflation figures using this assumption for the Wholesale sector using the same methodology above at the 95th Percentile for the Retail trade distribution figures generated.

In millions Base Year 2015 2016 2017 2018 2019 2020

Wholesale

Micro 11,8 12,5 13,3 14,1 14,9 15,8 16,7

Very Small 23,8 25,2 26,7 28,3 30,0 31,8 33,8

Small 57,0 60,4 64,0 67,9 72,0 76,3 80,9

Medium 157,0 166,4 176,4 187,0 198,2 210,1 222,7

Note: Micro firms refer to those who employ 5 or less employees, Very Small are firms that employ greater than 5 and less than 20 employees, small firms are those that employ greater than 20 employees and less than 50 employees whereas Medium firms are those that employ greater than 50 and less than 200.

In millions Base Year 2015 2016 2017 2018 2019 2020

Wholesale

Micro 14,0 14,8 15,7 16,7 17,7 18,7 19,9

Small 41,5 44,0 46,6 49,4 52,4 55,5 58,9

Medium 157,0 166,4 176,4 187,0 198,2 210,1 222,7

Note: Micro firms refer to those who employ 10 or less employees, Small firms that employ greater than 10 and less than 50 employees, whereas Medium firms are those that employ greater than 50 and less than 250.

The two tables above therefore identify the proposed cut-offs for the wholesale sector to be included in the updated schedule. As presented below.

PROPOSED REVISED SCHEDULE OPTIONS

Provided below are two options for the updating of the schedule. The sector classifications should be read in conjunction with the ISIC codes table in Annexure A. Turnover cut-offs have further been smoothed upwards to round numbers on the high end to accommodate for a schedule update in 2021.

◊ Option A: provides an update of the current schedule, not inclusive of earlier recommendations by prior research.

◊ Option B: proposed an update and new classification of the schedule, inclusive of earlier recommendations by prior research.


Table 5: Option A (Schedule Update)

Column 1 Column 2 Column 3 Column 4

Sectors or sub-sectors in accordance with the standard industrial classification




Agriculture Medium 200 35,0 Million

Small 50 17,0 Million

Very small 10 10,0 Million

Micro 5 7,0 Million

Mining and quarrying Medium 200 210,0 Million



Micro 5 10,0 Million

Manufacturing Medium 200 170,0 Million



Micro 5 5,0 Million

Electricity, gas and water Medium 200 180,0 Million



Micro 5 5,0 Million

Construction Medium 200 170,0 Million



Micro 5 6,0 Million

Retail, motor trade and repair services

Medium 200 80,0 Million



Micro 5 5,0 Million

Wholesale Medium 200 220,0 Million




Catering, accommodation and other trade




Micro 5 3,0 Million





Micro 5 5,0 Million

Finance and business services Medium 200 85,0 Million



Micro 5 3,0 Million





Micro 5 3,0 Million


Option B provides an opportunity to modernise the current schedule in line with international classifications of firms by employment size and sector distribution based on firm level data. Furthermore, this option aligns the schedule with the recommendations provided in the previous study reports commissioned by the DTI and the DSBD.

Table 6: Option B (Schedule Update)

Column 1 Column 2 Column 3 Column 4

Sectors or sub-sectors in accordance with the standard industrial classification




Agriculture Medium 250 35,0 Million



Mining and quarrying Medium 250 210,0 Million



Manufacturing Medium 250 170,0 Million



Electricity, gas and water Medium 250 180,0 Million



Construction Medium 250 170,0 Million



Retail, motor trade and repair services. Medium 250 80,0 Million



Wholesale Medium 250 220,0 Million



Catering, accommodation and other trade Medium 250 40,0 Million



Transport, storage and communications Medium 250 140,0 Million



Finance and business services Medium 250 85,0 Million



Community, social and personal services Medium 250 70,0 Million




POSSIBLE IMPLICATIONS TO THE SCHEDULE UPDATE EITHER OPTION A OR B

◊ Stats SA will require to re-evaluate their current methodology in capturing firms under the new proposed schedule, both A and B. This will affect a number of surveys conducted by Stats SA.

◊ The DTI will require a review of the BBB-EE codes per sector to ensure that EME and QSE cut-off thresholds are in line with the current firm population data outlined in the new Schedule.

◊ Currently there is no harmonization of the NSBA definition across current Laws and Regulations as well as Socio-economic Policy documents based on employment and turnover. Updating the Schedule is not going to affect current policies and regulatory guidelines that already exist.

◊ Updating the Schedule of the NSBA does not immediately affect the policy requirements needed to stimulate the SMME sectors. It however does adjust the turnover cut-offs for better statistical gathering of data in alignment with current firm activity. By harmonising the statistical data collection to the revised threshold cut-offs better evidence may be gathered to inform the policy debate to stimulate the SMME segment of the economy.

◊ The revised schedule updates have not captured any reference to the informal sector, these firms will be present in the Micro cut-offs thresholds as proposed in the schedules above.


ANNEXURES

Annexure A: Table 7: ISIC code classification for sectors reviewed

Agriculture, forestry and fishing

01 - Crop and animal production, hunting and related service activities02 - Forestry and logging03 - Fishing and aquaculture


05 - Mining of coal and lignite06 - Extraction of crude petroleum and natural gas07 - Mining of metal ores08 - Other mining and quarrying09 - Mining support service activities

Manufacturing

10 - Manufacture of food products11 - Manufacture of beverages12 - Manufacture of tobacco products13 - Manufacture of textiles14 - Manufacture of wearing apparel15 - Manufacture of leather and related products16 - Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials17 - Manufacture of paper and paper products18 - Printing and reproduction of recorded media19 - Manufacture of coke and refined petroleum products20 - Manufacture of chemicals and chemical products21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations

22 - Manufacture of rubber and plastics products23 - Manufacture of other non-metallic mineral products24 - Manufacture of basic metals25 - Manufacture of fabricated metal products, except machinery and equipment26 - Manufacture of computer, electronic and optical products27 - Manufacture of electrical equipment28 - Manufacture of machinery and equipment n.e.c.29 - Manufacture of motor vehicles, trailers and semi-trailers30 - Manufacture of other transport equipment31 - Manufacture of furniture32 - Other manufacturing33 - Repair and installation of machinery and equipment


35 - Electricity, gas, steam and air conditioning supply36 - Water collection, treatment and supply37 - Sewerage38 - Waste collection, treatment and disposal activities; materials recovery39 - Remediation activities and other waste management services

Construction

41 - Construction of buildings42 - Civil engineering43 - Specialized construction activities

Retail, motor trade and repair services + Wholesale trade, commercial agents and allied services*

45 - Wholesale and retail trade and repair of motor vehicles and motorcycles46 - Wholesale trade, except of motor vehicles and motorcycles47 - Retail trade, except of motor vehicles and motorcycles

Catering, accommodation and other trades

55 - Accommodation56 - Food and beverage service activities



49 - Land transport and transport via pipelines50 - Water transport51 - Air transport52 - Warehousing and support activities for transportation53 - Postal and courier activities58 - Publishing activities

59 - Motion picture, video and television programme production, sound recording and music publishing activities60 - Programming and broadcasting activities61 - Telecommunications62 - Computer programming, consultancy and related activities63 - Information service activities


64 - Financial service activities, except insurance and pension funding65 - Insurance, reinsurance and pension funding, except compulsory social security66 - Activities auxiliary to financial service and insurance activities68 - Real estate activities69 - Legal and accounting activities70 - Activities of head offices; management consultancy activities71 - Architectural and engineering activities; technical testing and analysis72 - Scientific research and development

73 - Advertising and market research74 - Other professional, scientific and technical activities77 - Rental and leasing activities78 - Employment activities79 - Travel agency, tour operator, reservation service and related activities80 - Security and investigation activities81 - Services to buildings and landscape activities82 - Office administrative, office support and other business support activities


86 - Human health activities87 - Residential care activities88 - Social work activities without accommodation90 - Creative, arts and entertainment activities91 - Libraries, archives, museums and other cultural activities92 - Gambling and betting activities93 - Sports activities and amusement and recreation activities

94 - Activities of membership organizations95 - Repair of computers and personal and household goods96 - Other personal service activities97 - Activities of households as employers of domestic personnel98 - Undifferentiated goods- and services-producing activities of private households for own use

Note: *Please note: Retail, Motor Trade and Wholesale have been collapsed in the analysis due to the size and number of firms in the wholesale sector which is dominated by larger firms.

Source: https://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=27


Annexure B Table 8: Descriptive Distribution Statistics for Firms (SARS-NT)

Sector Year Micro Very small Small Med %

SMME Micro Small Med % SMME

Number of firms analysed

Agriculture, forestry and fishing

2014 27,62 12,73 36,78 10,47 87,6 41,85 35,79 16,59 94,23 5 138

Mining and quarrying 2014 31,26 26,24 16,18 15,42 89,1 44,82 29,35 15,13 89,3 1 174

Manufacturing 2014 33,11 36,02 17,41 10,46 97 51,79 35,03 10,24 97,06 29 323

Electricity, gas and water supply 2014 46,52 35,11 10,44 6,48 98,55 66,63 25,57 6,37 98,57 1 034

Construction 2014 40,24 35,28 14,56 8,05 98,13 58,87 31,39 7,9 98,16 9 404

Trade wholesale, retail, and motor repairs

2014 40,02 35,94 15,12 7,56 98,64 59,76 31,5 7,4 98,66 21 343

Trade accommodation/catering

2014 28,28 38,84 22,26 8,85 98,23 46,84 42,8 8,62 98,26 4 848

Transport, storage and communication

2014 45,47 30,47 12,47 8,41 96,82 62,33 26,4 8,18 96,91 7 361

Finance and business services 2014 55,51 28,33 8,42 5,38 97,64 72,74 19,73 5,24 97,71 28 262


2014 55,06 31,03 7,77 4,36 98,22 74,99 19,06 4,22 98,27 6 967

Notes: The SARS-NT panel data used to verify the employment cut-offs, has been taken from the CIT data collected by SARS. Due to complications of linking all the IRP-5 forms with firms, the panel data used to verify the turnover distributions has excluded some firms from the larger panel. The total number of firms analysed to inform the updating of the schedule is 114 854 firms for 2014.


Annexure C: Descriptive statistics for the Current Schedule Classification (Employment cut-off)Agriculture, forestry and fishing

Year 10th percentile

25th percentile Median 75th

percentile90th percentile Mean

Mic

ro

2014 R220 706 R640 152 R1 921 925 R5 778 292 R17 300 000 R9 340 623

2013 R203 325 R593 579 R1 608 046 R5 162 689 R15 100 000 R7 271 502

2012 R191 995 R559 394 R1 491 569 R4 152 676 R11 100 000 R5 885 412

2011 R185 132 R556 854 R1 554 179 R4 381 292 R11 300 000 R4 994 980

2010 R211 993 R652 171 R1 867 277 R5 090 697 R12 200 000 R5 328 933

Very

sm

all

2014 R594 589 R1 367 799 R3 152 979 R7 473 450 R17 900 000 R11 300 000

2013 R508 282 R1 226 399 R2 874 432 R7 615 377 R16 500 000 R9 247 956

2012 R424 202 R952 877 R2 373 670 R6 318 853 R15 000 000 R6 975 253

2011 R458 040 R1 027 208 R2 573 730 R5 899 255 R16 400 000 R7 016 730

2010 R404 775 R1 063 122 R2 709 072 R7 243 008 R18 500 000 R8 314 859

Smal

l

2014 R1 935 883 R3 823 867 R7 610 341 R17 200 000 R34 700 000 R21 300 000

2013 R1 604 665 R3 052 282 R6 216 700 R15 400 000 R31 500 000 R18 300 000

2012 R1 425 015 R2 745 811 R5 556 689 R12 700 000 R26 400 000 R15 700 000

2011 R1 222 053 R2 619 606 R5 258 122 R11 900 000 R23 900 000 R12 900 000

2010 R1 119 695 R2 629 012 R5 227 073 R11 900 000 R24 700 000 R14 400 000

Med

ium

2014 R6 148 365 R9 565 796 R15 700 000 R35 500 000 R83 700 000 R43 100 000

2013 R4 903 190 R8 004 418 R14 300 000 R33 400 000 R78 000 000 R37 700 000

2012 R3 949 937 R6 601 549 R12 000 000 R25 700 000 R60 500 000 R28 100 000

2011 R3 652 347 R5 922 752 R10 600 000 R24 500 000 R55 900 000 R26 500 000

2010 R3 413 444 R5 445 517 R9 554 986 R22 500 000 R42 000 000 R20 200 000





Mic

ro

2014 R377 340 R907 873 R2 499 521 R7 528 187 R20 900 000 R16 700 000

2013 R446 558 R886 132 R2 310 848 R6 796 620 R19 800 000 R13 800 000

2012 R378 493 R911 610 R2 400 788 R8 225 106 R44 800 000 R25 100 000

2011 R296 783 R805 251 R2 305 800 R7 023 263 R61 500 000 R34 500 000

2010 R236 000 R639 947 R2 554 867 R6 864 120 R17 500 000 R15 800 000

Very

sm

all

2014 R1 813 625 R3 806 856 R7 394 659 R15 200 000 R40 700 000 R39 600 000

2013 R1 723 490 R3 427 254 R6 331 781 R12 400 000 R40 800 000 R33 300 000

2012 R995 896 R2 721 765 R5 687 196 R15 800 000 R54 600 000 R53 200 000

2011 R1 121 245 R2 511 569 R5 823 585 R12 700 000 R33 400 000 R37 600 000

2010 R831 300 R2 632 551 R5 346 066 R13 100 000 R19 800 000 R12 500 000

Smal

l

2014 R5 808 763 R10 300 000 R18 400 000 R35 500 000 R74 700 000 R44 300 000

2013 R5 329 402 R9 317 621 R17 300 000 R31 600 000 R55 100 000 R29 700 000

2012 R3 580 711 R6 631 224 R13 400 000 R33 300 000 R87 500 000 R69 900 000

2011 R3 906 065 R7 305 587 R14 500 000 R36 900 000 R199 000 000 R101 000 000

2010 R4 344 219 R9 207 106 R16 300 000 R34 600 000 R63 700 000 R29 700 000

Med

ium

2014 R14 700 000 R33 300 000 R58 500 000 R139 000 000 R556 000 000 R223 000 000

2013 R12 500 000 R24 500 000 R59 100 000 R158 000 000 R434 000 000 R234 000 000

2012 R7 739 309 R24 200 000 R57 000 000 R157 000 000 R548 000 000 R282 000 000

2011 R12 300 000 R23 000 000 R48 500 000 R153 000 000 R423 000 000 R180 000 000

2010 R5 339 906 R13 500 000 R42 400 000 R95 000 000 R182 000 000 R102 000 000


Manufacturing




Mic

ro2014 R470 470 R928 177 R1 973 618 R4 368 821 R10 000 000 R6 147 884

2013 R436 000 R860 178 R1 767 112 R3 912 209 R9 015 843 R5 857 032

2012 R412 760 R810 144 R1 657 123 R3 705 049 R8 814 544 R5 807 846

2011 R393 680 R776 924 R1 566 543 R3 545 868 R8 089 133 R5 242 253

2010 R370 535 R754 098 R1 547 939 R3 506 784 R8 091 013 R4 270 272

Very

sm

all

2014 R1 994 005 R3 484 276 R6 550 641 R13 600 000 R29 600 000 R20 200 000

2013 R1 820 651 R3 139 956 R5 902 389 R12 000 000 R25 900 000 R17 000 000

2012 R1 733 253 R2 991 077 R5 605 293 R11 300 000 R24 000 000 R15 200 000

2011 R1 647 352 R2 803 478 R5 233 580 R10 500 000 R22 100 000 R14 300 000

2010 R1 535 596 R2 608 024 R4 829 373 R9 432 220 R19 500 000 R10 600 000

Smal

l

2014 R6 487 746 R11 300 000 R21 100 000 R43 400 000 R87 000 000 R44 300 000

2013 R5 909 647 R10 400 000 R19 100 000 R39 500 000 R78 200 000 R39 400 000

2012 R5 235 097 R9 287 730 R17 500 000 R35 600 000 R72 700 000 R37 100 000

2011 R4 872 340 R8 693 731 R15 700 000 R32 300 000 R65 800 000 R33 000 000

2010 R4 808 175 R8 186 858 R14 100 000 R28 600 000 R52 800 000 R28 000 000

Med

ium

2014 R16 800 000 R31 600 000 R63 900 000 R138 000 000 R280 000 000 R126 000 000

2013 R15 600 000 R29 400 000 R59 000 000 R128 000 000 R261 000 000 R119 000 000

2012 R14 000 000 R26 800 000 R52 800 000 R120 000 000 R261 000 000 R118 000 000

2011 R12 900 000 R24 700 000 R50 300 000 R109 000 000 R236 000 000 R114 000 000

2010 R11 000 000 R21 400 000 R41 600 000 R81 900 000 R164 000 000 R77 600 000





Mic

ro

2014 R427 588 R871 901 R2 002 894 R4 113 870 R8 341 676 R4 735 093

2013 R438 678 R752 719 R1 559 702 R3 386 679 R7 524 856 R3 846 989

2012 R377 952 R785 398 R1 492 387 R3 142 979 R6 566 253 R3 095 845

2011 R415 981 R760 766 R1 469 663 R3 354 445 R6 835 964 R3 358 482

2010 R329 365 R699 276 R1 296 347 R2 745 464 R5 368 968 R2 703 484

Very

sm

all

2014 R2 030 273 R3 319 106 R6 493 449 R14 000 000 R32 300 000 R15 700 000

2013 R1 946 527 R2 957 944 R6 145 582 R11 600 000 R23 300 000 R14 000 000

2012 R1 624 791 R2 762 979 R5 936 010 R11 100 000 R23 800 000 R18 000 000

2011 R1 361 343 R2 538 660 R5 046 599 R10 600 000 R22 500 000 R12 400 000

2010 R1 310 579 R2 873 878 R5 467 458 R11 600 000 R22 000 000 R12 200 000

Smal

l

2014 R6 814 995 R9 787 103 R18 800 000 R46 600 000 R94 400 000 R39 700 000

2013 R6 654 267 R10 200 000 R23 700 000 R50 400 000 R94 800 000 R41 400 000

2012 R6 505 768 R12 800 000 R21 200 000 R47 700 000 R73 700 000 R34 500 000

2011 R4 062 596 R7 355 714 R19 200 000 R33 300 000 R57 200 000 R31 800 000

2010 R5 190 606 R8 012 619 R13 700 000 R29 400 000 R44 600 000 R22 800 000

Med

ium

2014 R13 800 000 R28 500 000 R53 000 000 R136 000 000 R355 000 000 R147 000 000

2013 R16 500 000 R25 500 000 R43 700 000 R121 000 000 R323 000 000 R166 000 000

2012 R11 400 000 R22 000 000 R45 200 000 R125 000 000 R431 000 000 R158 000 000

2011 R10 500 000 R28 300 000 R68 000 000 R135 000 000 R461 000 000 R350 000 000

2010 R9 213 966 R15 300 000 R34 500 000 R99 300 000 R726 000 000 R267 000 000


Retail, motor trade and repair services Wholesale trade, commercial agents and allied services




Mic

ro2014 R405 613 R814 943 R1 633 089 R3 723 941 R7 981 110 R5 644 879

2013 R365 478 R733 890 R1 478 604 R3 293 137 R7 397 682 R3 358 123

2012 R345 239 R657 895 R1 314 713 R2 993 189 R6 929 933 R3 362 333

2011 R304 448 R645 220 R1 283 406 R2 818 061 R6 207 219 R2 869 598

2010 R310 993 R637 308 R1 295 162 R2 995 403 R6 646 755 R3 058 912

Very

sm

all

2014 R1 417 815 R2 430 163 R4 583 577 R9 111 284 R17 900 000 R9 275 534

2013 R1 317 949 R2 270 839 R4 178 187 R8 014 314 R15 900 000 R8 191 853

2012 R1 209 266 R2 058 679 R3 796 898 R7 210 782 R14 500 000 R7 269 794

2011 R1 168 201 R1 981 480 R3 606 134 R6 831 545 R14 300 000 R6 905 623

2010 R1 109 649 R1 882 838 R3 463 275 R6 673 726 R13 700 000 R6 668 306

Smal

l

2014 R4 174 095 R7 261 836 R12 100 000 R21 900 000 R47 200 000 R22 800 000

2013 R3 999 776 R6 469 178 R11 500 000 R21 500 000 R39 300 000 R20 700 000

2012 R3 445 217 R5 844 926 R10 200 000 R18 700 000 R35 900 000 R18 200 000

2011 R3 049 895 R5 516 241 R9 837 954 R17 600 000 R32 500 000 R16 300 000

2010 R3 047 144 R5 248 930 R9 593 371 R17 200 000 R31 100 000 R15 900 000

Med

ium

2014 R10 300 000 R19 700 000 R36 900 000 R70 900 000 R135 000 000 R65 800 000

2013 R8 985 341 R16 800 000 R30 900 000 R57 000 000 R119 000 000 R56 200 000

2012 R10 100 000 R16 000 000 R28 500 000 R53 200 000 R106 000 000 R47 900 000

2011 R8 668 896 R14 800 000 R26 500 000 R48 900 000 R96 900 000 R45 400 000

2010 R9 659 189 R15 800 000 R26 300 000 R47 700 000 R88 200 000 R42 700 000

Construction




Mic

ro

2014 R551 612 R1 062 086 R2 378 661 R5 327 391 R12 600 000 R8 724 933

2013 R518 049 R990 744 R2 174 780 R4 831 098 R11 500 000 R11 600 000

2012 R457 681 R909 755 R1 962 045 R4 430 258 R10 300 000 R6 930 062

2011 R442 297 R877 205 R1 889 734 R4 262 805 R10 200 000 R6 252 002

2010 R416 792 R852 714 R1 892 201 R4 467 709 R11 300 000 R5 570 940

Very

sm

all

2014 R2 501 751 R4 602 137 R9 351 455 R18 900 000 R39 000 000 R21 600 000

2013 R2 284 597 R4 114 897 R8 282 894 R16 800 000 R34 600 000 R18 600 000

2012 R2 049 819 R3 733 710 R7 491 114 R15 300 000 R31 500 000 R16 900 000

2011 R1 888 754 R3 557 124 R7 085 818 R14 300 000 R28 600 000 R16 000 000

2010 R1 790 870 R3 358 357 R6 743 790 R13 500 000 R26 400 000 R13 600 000

Smal

l

2014 R10 200 000 R18 000 000 R35 800 000 R64 200 000 R102 000 000 R57 600 000

2013 R8 238 675 R16 000 000 R32 100 000 R57 700 000 R91 100 000 R52 100 000

2012 R6 947 289 R13 900 000 R28 300 000 R51 100 000 R82 800 000 R46 300 000

2011 R6 122 529 R12 200 000 R25 500 000 R44 900 000 R74 700 000 R40 400 000

2010 R6 101 404 R12 300 000 R23 900 000 R40 500 000 R65 500 000 R36 800 000

Med

ium

2014 R28 600 000 R56 000 000 R98 000 000 R157 000 000 R287 000 000 R190 000 000

2013 R23 100 000 R48 700 000 R86 300 000 R142 000 000 R267 000 000 R168 000 000

2012 R17 900 000 R40 400 000 R74 700 000 R123 000 000 R231 000 000 R133 000 000

2011 R15 300 000 R36 900 000 R66 500 000 R112 000 000 R208 000 000 R120 000 000

2010 R12 800 000 R32 500 000 R63 200 000 R104 000 000 R169 000 000 R106 000 000






Mic

ro2014 R301 254 R615 670 R1 039 679 R2 150 692 R4 449 503 R1 964 748

2013 R280 896 R564 226 R1 054 229 R2 080 722 R4 800 510 R1 980 060

2012 R297 000 R570 991 R1 070 897 R2 176 661 R4 450 116 R1 957 419

2011 R277 789 R555 561 R1 025 697 R2 184 114 R4 533 454 R2 000 680

2010 R268 083 R595 853 R1 164 966 R2 494 539 R5 040 594 R2 212 558

Very

sm

all

2014 R1 116 127 R1 867 624 R2 966 867 R4 686 763 R7 327 869 R4 264 221

2013 R1 106 346 R1 785 206 R2 862 130 R4 494 401 R6 917 226 R4 059 837

2012 R1 055 134 R1 687 391 R2 729 906 R4 403 868 R6 903 306 R3 769 006

2011 R983 739 R1 573 020 R2 592 720 R4 081 351 R6 368 638 R3 510 778

2010 R912 171 R1 480 061 R2 432 989 R3 917 459 R6 451 484 R3 548 771

Smal

l

2014 R3 918 649 R5 724 371 R8 403 064 R11 600 000 R16 000 000 R10 100 000

2013 R3 753 124 R5 319 454 R7 598 689 R10 500 000 R15 400 000 R9 044 376

2012 R3 516 026 R5 005 469 R7 159 507 R9 885 498 R13 900 000 R9 103 905

2011 R3 184 695 R4 679 539 R6 746 238 R9 368 440 R13 200 000 R8 427 547

2010 R3 115 330 R4 491 704 R6 518 356 R9 219 115 R14 000 000 R7 951 812

Med

ium

2014 R9 613 786 R13 200 000 R19 100 000 R30 500 000 R52 400 000 R27 100 000

2013 R9 491 698 R12 300 000 R18 300 000 R28 600 000 R46 700 000 R24 900 000

2012 R8 498 883 R11 600 000 R16 800 000 R29 300 000 R50 200 000 R28 900 000

2011 R7 493 646 R10 600 000 R16 300 000 R28 000 000 R45 500 000 R23 800 000

2010 R7 405 253 R10 400 000 R15 600 000 R25 900 000 R43 500 000 R22 700 000





Mic

ro

2014 R416 667 R863 618 R1 680 393 R3 947 356 R9 208 439 R4 675 162

2013 R383 112 R766 273 R1 505 364 R3 524 122 R8 825 580 R4 483 571

2012 R380 724 R748 868 R1 451 925 R3 386 548 R8 188 665 R10 400 000

2011 R360 771 R704 713 R1 357 605 R3 256 789 R8 362 996 R3 983 785

2010 R311 377 R671 017 R1 300 896 R3 093 895 R7 064 486 R4 882 514

Very

sm

all

2014 R2 090 303 R3 807 343 R7 352 292 R15 800 000 R33 500 000 R20 900 000

2013 R1 757 316 R3 049 201 R6 104 440 R13 000 000 R27 200 000 R17 500 000

2012 R1 513 855 R2 781 460 R5 610 845 R12 400 000 R27 300 000 R17 300 000

2011 R1 537 225 R2 664 340 R5 347 828 R11 700 000 R26 000 000 R17 600 000

2010 R1 521 982 R2 518 927 R4 792 133 R10 100 000 R21 300 000 R14 800 000

Smal

l

2014 R6 940 535 R13 100 000 R23 400 000 R45 300 000 R90 100 000 R53 800 000

2013 R6 216 550 R11 000 000 R20 400 000 R36 700 000 R69 500 000 R38 700 000

2012 R4 404 432 R9 031 395 R18 100 000 R32 500 000 R60 400 000 R34 600 000

2011 R4 168 893 R8 356 973 R16 600 000 R31 300 000 R60 900 000 R32 700 000

2010 R4 277 213 R8 285 076 R14 500 000 R29 700 000 R59 700 000 R32 500 000

Med

ium

2014 R15 100 000 R31 700 000 R62 300 000 R112 000 000 R226 000 000 R128 000 000

2013 R14 200 000 R27 900 000 R55 500 000 R107 000 000 R219 000 000 R114 000 000

2012 R12 000 000 R27 600 000 R53 100 000 R98 100 000 R233 000 000 R127 000 000

2011 R11 300 000 R25 700 000 R49 600 000 R94 700 000 R204 000 000 R113 000 000

2010 R9 554 111 R21 300 000 R41 700 000 R82 300 000 R150 000 000 R115 000 000






Mic

ro2014 R281 325 R569 298 R1 090 229 R2 218 470 R4 547 610 R2 687 056

2013 R251 455 R528 720 R1 007 515 R2 068 005 R4 318 994 R2 494 254

2012 R257 237 R527 373 R1 031 346 R2 181 021 R4 718 147 R2 809 658

2011 R251 596 R505 993 R1 009 844 R2 090 739 R4 539 967 R2 758 595

2010 R221 869 R468 096 R962 379 R1 985 154 R4 239 643 R12 700 000

Very

sm

all

2014 R1 240 559 R2 294 017 R4 309 191 R8 528 230 R16 400 000 R18 100 000

2013 R1 106 735 R2 063 188 R3 957 326 R7 799 796 R15 600 000 R9 721 324

2012 R1 082 822 R2 031 461 R3 981 196 R8 219 424 R16 500 000 R9 854 836

2011 R1 046 021 R1 950 900 R3 778 082 R7 664 461 R15 600 000 R8 509 841

2010 R990 122 R1 818 491 R3 495 888 R7 010 210 R14 300 000 R8 034 103

Smal

l

2014 R3 239 210 R6 647 790 R13 600 000 R26 300 000 R47 200 000 R29 100 000

2013 R2 737 253 R5 884 309 R12 100 000 R24 000 000 R43 900 000 R27 700 000

2012 R2 678 889 R5 872 332 R12 300 000 R25 200 000 R48 400 000 R27 600 000

2011 R2 359 147 R5 473 638 R11 500 000 R23 300 000 R44 000 000 R23 200 000

2010 R2 353 311 R4 992 288 R10 400 000 R20 900 000 R40 700 000 R20 200 000

Med

ium

2014 R5 755 203 R12 000 000 R31 900 000 R66 700 000 R131 000 000 R66 500 000

2013 R4 572 902 R10 200 000 R27 500 000 R59 500 000 R122 000 000 R70 900 000

2012 R5 134 380 R11 200 000 R28 300 000 R68 500 000 R141 000 000 R72 900 000

2011 R4 518 368 R10 000 000 R27 100 000 R60 500 000 R127 000 000 R64 100 000

2010 R3 673 353 R8 136 818 R22 800 000 R49 900 000 R99 700 000 R60 600 000





Mic

ro

2014 R356 081 R676 374 R1 276 427 R2 592 925 R4 718 963 R2 415 153

2013 R320 683 R623 007 R1 195 565 R2 477 093 R4 309 109 R2 201 893

2012 R287 445 R568 878 R1 118 931 R2 221 020 R3 989 818 R2 112 863

2011 R282 795 R545 643 R1 091 339 R2 152 705 R3 705 892 R2 041 300

2010 R271 946 R509 539 R1 038 773 R2 066 296 R3 538 602 R1 816 839

Very

sm

all

2014 R1 130 351 R2 065 776 R3 818 728 R6 855 277 R12 600 000 R6 428 116

2013 R1 073 839 R1 942 564 R3 527 545 R6 332 062 R11 200 000 R5 734 129

2012 R945 328 R1 710 559 R3 069 956 R5 291 432 R9 676 893 R4 803 058

2011 R972 247 R1 652 100 R2 952 996 R5 140 147 R9 334 882 R4 925 019

2010 R902 818 R1 568 677 R2 924 485 R4 927 523 R8 923 699 R4 528 551

Smal

l

2014 R2 413 357 R4 754 693 R10 100 000 R19 100 000 R44 500 000 R19 000 000

2013 R2 194 511 R4 095 303 R9 451 196 R17 500 000 R37 100 000 R16 600 000

2012 R1 961 915 R3 928 710 R8 343 288 R15 300 000 R28 900 000 R14 700 000

2011 R1 867 500 R3 577 209 R7 610 623 R14 000 000 R27 000 000 R17 800 000

2010 R1 507 819 R3 252 056 R6 766 971 R13 400 000 R24 700 000 R12 000 000

Med

ium

2014 R4 924 312 R10 200 000 R20 700 000 R51 900 000 R93 700 000 R45 800 000

2013 R4 654 565 R8 751 606 R18 800 000 R53 100 000 R117 000 000 R68 300 000

2012 R3 410 235 R8 460 111 R21 600 000 R50 500 000 R102 000 000 R72 500 000

2011 R4 018 911 R7 380 810 R19 600 000 R47 200 000 R93 900 000 R54 800 000

2010 R2 605 832 R4 832 946 R16 700 000 R41 400 000 R81 300 000 R55 200 000


Annexure D: Descriptive statistics for the Proposed Schedule Classification (Employment cut-off)Agriculture, forestry and fishing




Mic

ro

2014 R283 339 R819 993 R2 322 942 R6 569 059 R17 900 000 R10 100 000

2013 R263 432 R754 689 R2 041 148 R6 032 048 R15 300 000 R8 068 877

2012 R241 000 R670 884 R1 788 132 R4 734 112 R12 400 000 R6 310 290

2011 R224 626 R679 320 R1 871 624 R4 781 396 R12 400 000 R5 734 708

2010 R249 732 R740 935 R2 116 134 R5 730 616 R14 000 000 R6 050 054

Smal

l

2014 R1 935 883 R3 823 867 R7 610 341 R17 200 000 R34 700 000 R21 300 000

2013 R1 604 665 R3 052 282 R6 216 700 R15 400 000 R31 500 000 R18 300 000

2012 R1 425 015 R2 745 811 R5 556 689 R12 700 000 R26 400 000 R15 700 000

2011 R1 222 053 R2 619 606 R5 258 122 R11 900 000 R23 900 000 R12 900 000

2010 R1 119 695 R2 629 012 R5 227 073 R11 900 000 R24 700 000 R14 400 000

Med

ium

2014 R6 739 636 R10 900 000 R18 500 000 R41 200 000 R94 800 000 R47 000 000

2013 R5 432 711 R9 107 800 R16 600 000 R35 400 000 R83 600 000 R40 900 000

2012 R4 370 110 R7 642 620 R13 600 000 R29 500 000 R68 900 000 R32 100 000

2011 R4 423 050 R7 061 350 R13 000 000 R29 300 000 R67 700 000 R30 600 000

2010 R4 047 286 R6 789 532 R12 500 000 R26 800 000 R59 400 000 R26 100 000





Mic

ro

2014 R481 545 R1 187 674 R3 256 360 R8 545 450 R21 700 000 R16 000 000

2013 R525 113 R1 099 538 R2 977 143 R7 636 397 R21 000 000 R13 800 000

2012 R429 525 R976 564 R3 118 153 R8 225 106 R38 000 000 R21 800 000

2011 R405 840 R934 845 R2 665 966 R8 240 245 R42 000 000 R39 800 000

2010 R324 062 R905 578 R2 923 424 R8 103 968 R19 100 000 R14 800 000

Smal

l

2014 R3 806 087 R6 996 701 R13 000 000 R29 000 000 R74 700 000 R52 100 000

2013 R3 735 551 R6 804 114 R13 300 000 R26 500 000 R54 900 000 R39 500 000

2012 R2 962 741 R4 931 407 R11 700 000 R30 200 000 R87 500 000 R77 400 000

2011 R2 548 589 R5 157 148 R11 100 000 R28 000 000 R83 500 000 R63 000 000

2010 R2 825 847 R4 982 408 R12 600 000 R24 000 000 R48 600 000 R23 000 000

Med

ium

2014 R14 700 000 R33 300 000 R58 500 000 R139 000 000 R556 000 000 R223 000 000

2013 R12 500 000 R24 500 000 R59 100 000 R158 000 000 R434 000 000 R234 000 000

2012 R7 739 309 R24 200 000 R57 000 000 R157 000 000 R548 000 000 R282 000 000

2011 R12 300 000 R23 000 000 R48 500 000 R153 000 000 R423 000 000 R180 000 000

2010 R5 339 906 R13 500 000 R42 400 000 R95 000 000 R182 000 000 R102 000 000

Manufacturing




Mic

ro

2014 R619 993 R1 277 435 R2 768 598 R6 101 654 R14 100 000 R7 980 155

2013 R574 620 R1 177 389 R2 518 058 R5 515 396 R12 500 000 R7 551 810

2012 R540 935 R1 090 170 R2 340 231 R5 212 602 R11 900 000 R6 870 577

2011 R508 924 R1 027 309 R2 215 359 R4 870 796 R11 000 000 R6 592 990

2010 R480 936 R981 598 R2 125 224 R4 663 168 R10 300 000 R5 431 925


Smal

l

2014 R3 996 853 R6 877 563 R14 000 000 R29 800 000 R65 600 000 R36 800 000

2013 R3 523 736 R6 199 329 R12 500 000 R26 900 000 R57 100 000 R31 500 000

2012 R3 331 669 R5 674 773 R11 300 000 R24 600 000 R52 800 000 R29 100 000

2011 R3 071 066 R5 321 989 R10 400 000 R22 000 000 R46 500 000 R25 900 000

2010 R2 809 771 R4 967 064 R9 564 328 R19 600 000 R39 000 000 R20 100 000M

ediu

m

2014 R16 800 000 R31 600 000 R63 900 000 R138 000 000 R280 000 000 R126 000 000

2013 R15 600 000 R29 400 000 R59 000 000 R128 000 000 R261 000 000 R119 000 000

2012 R14 000 000 R26 800 000 R52 800 000 R120 000 000 R261 000 000 R118 000 000

2011 R12 900 000 R24 700 000 R50 300 000 R109 000 000 R236 000 000 R114 000 000

2010 R11 000 000 R21 400 000 R41 600 000 R81 900 000 R164 000 000 R77 600 000





Mic

ro

2014 R530 904 R1 163 445 R2 637 972 R5 458 416 R13 000 000 R8 044 991

2013 R541 096 R1 022 621 R2 231 209 R4 994 741 R10 800 000 R7 093 281

2012 R1 072 944 R1 072 944 R2 035 309 R4 569 023 R9 604 519 R8 339 421

2011 R525 616 R967 665 R1 904 639 R4 405 662 R8 537 577 R5 343 836

2010 R389 440 R864 985 R1 736 153 R3 878 897 R7 692 043 R4 597 465

Smal

l

2014 R3 529 526 R6 343 050 R13 300 000 R27 000 000 R64 500 000 R25 400 000

2013 R3 358 063 R6 300 488 R11 700 000 R27 500 000 R60 500 000 R26 000 000

2012 R3 165 102 R6 177 050 R11 200 000 R24 200 000 R54 400 000 R22 200 000

2011 R3 243 009 R5 251 740 R9 920 450 R23 800 000 R44 700 000 R21 400 000

2010 R3 461 105 R5 045 292 R9 455 345 R19 600 000 R36 900 000 R17 200 000

Med

ium

2014 R13 800 000 R28 500 000 R53 000 000 R136 000 000 R355 000 000 R147 000 000

2013 R16 500 000 R25 500 000 R43 700 000 R121 000 000 R323 000 000 R166 000 000

2012 R11 400 000 R22 000 000 R45 200 000 R125 000 000 R431 000 000 R158 000 000

2011 R10 500 000 R28 300 000 R68 000 000 R135 000 000 R461 000 000 R350 000 000

2010 R9 213 966 R15 300 000 R34 500 000 R99 300 000 R726 000 000 R267 000 000

Retail, motor trade and repair services Wholesale trade, commercial agents and allied services




Mic

ro

2014 R519 475 R1 016 282 R2 078 399 R4 695 680 R10 100 000 R5 992 274

2013 R452 486 R935 305 R1 894 185 R4 182 411 R9 155 150 R4 326 513

2012 R425 503 R853 638 R1 721 169 R3 860 545 R8 501 397 R4 022 329

2011 R393 732 R809 711 R1 627 006 R3 589 836 R7 680 615 R3 620 726

2010 R380 039 R773 877 R1 617 919 R3 659 653 R7 766 057 R3 599 263

Smal

l

2014 R2 684 050 R4 545 088 R8 672 022 R16 300 000 R32 200 000 R16 800 000

2013 R2 527 251 R4 177 464 R7 691 577 R15 200 000 R30 500 000 R15 200 000

2012 R2 225 006 R3 840 265 R6 894 477 R13 500 000 R26 300 000 R13 300 000

2011 R2 080 583 R3 502 711 R6 518 433 R13 200 000 R24 600 000 R12 000 000

2010 R1 943 728 R3 355 344 R6 295 146 R12 500 000 R23 900 000 R11 800 000

Med

ium

2014 R10 300 000 R19 700 000 R36 900 000 R70 900 000 R135 000 000 R65 800 000

2013 R8 985 341 R16 800 000 R30 900 000 R57 000 000 R119 000 000 R56 200 000

2012 R10 100 000 R16 000 000 R28 500 000 R53 200 000 R106 000 000 R47 900 000

2011 R8 668 896 R14 800 000 R26 500 000 R48 900 000 R96 900 000 R45 400 000

2010 R9 659 189 R15 800 000 R26 300 000 R47 700 000 R88 200 000 R42 700 000


Construction




Mic

ro2014 R712 896 R1 512 970 R3 377 927 R7 847 495 R17 200 000 R10 500 000

2013 R667 486 R1 360 083 R3 106 841 R7 059 320 R16 000 000 R12 000 000

2012 R599 484 R1 218 249 R2 811 616 R6 411 960 R14 400 000 R8 497 519

2011 R561 585 R1 146 297 R2 645 964 R6 051 720 R13 700 000 R7 842 996

2010 R524 881 R1 098 611 R2 561 224 R5 927 262 R13 800 000 R6 848 312

Smal

l

2014 R5 417 418 R10 400 000 R21 700 000 R46 300 000 R80 800 000 R43 800 000

2013 R4 577 081 R8 884 404 R18 900 000 R40 600 000 R72 700 000 R37 500 000

2012 R4 094 535 R7 919 166 R16 700 000 R36 000 000 R65 100 000 R34 200 000

2011 R3 801 418 R7 357 306 R15 400 000 R32 000 000 R58 000 000 R30 000 000

2010 R3 582 007 R6 928 029 R14 300 000 R29 000 000 R51 500 000 R26 200 000

Med

ium

2014 R28 600 000 R56 000 000 R98 000 000 R157 000 000 R287 000 000 R190 000 000

2013 R23 100 000 R48 700 000 R86 300 000 R142 000 000 R267 000 000 R168 000 000

2012 R17 900 000 R40 400 000 R74 700 000 R123 000 000 R231 000 000 R133 000 000

2011 R15 300 000 R36 900 000 R66 500 000 R112 000 000 R208 000 000 R120 000 000

2010 R12 800 000 R32 500 000 R63 200 000 R104 000 000 R169 000 000 R106 000 000





Mic

ro

2014 R418 316 R823 322 R1 478 042 R2 601 982 R4 812 269 R2 478 472

2013 R393 035 R797 867 R1 410 752 R2 523 624 R4 930 195 R2 424 858

2012 R403 001 R767 583 R1 399 484 R2 570 369 R4 854 034 R2 325 983

2011 R369 226 R731 418 R1 321 378 R2 520 361 R4 915 364 R2 373 890

2010 R353 889 R731 845 R1 362 401 R2 633 744 R5 194 000 R2 414 413

Smal

l

2014 R2 408 365 R3 641 219 R5 766 412 R9 560 173 R14 000 000 R7 700 329

2013 R2 225 101 R3 378 364 R5 332 945 R8 647 885 R12 700 000 R6 930 696

2012 R2 146 308 R3 166 811 R5 006 932 R7 835 776 R11 400 000 R6 715 133

2011 R1 943 489 R2 935 080 R4 652 118 R7 477 287 R11 000 000 R6 273 598

2010 R1 766 547 R2 783 827 R4 388 627 R7 032 072 R11 000 000 R5 994 353

Med

ium

2014 R9 613 786 R13 200 000 R19 100 000 R30 500 000 R52 400 000 R27 100 000

2013 R9 491 698 R12 300 000 R18 300 000 R28 600 000 R46 700 000 R24 900 000

2012 R8 498 883 R11 600 000 R16 800 000 R29 300 000 R50 200 000 R28 900 000

2011 R7 493 646 R10 600 000 R16 300 000 R28 000 000 R45 500 000 R23 800 000

2010 R7 405 253 R10 400 000 R15 600 000 R25 900 000 R43 500 000 R22 700 000





Mic

ro

2014 R529 842 R1 094 527 R2 351 975 R5 601 991 R13 500 000 R6 644 036

2013 R465 574 R985 000 R2 114 204 R5 010 164 R11 900 000 R5 974 914

2012 R468 724 R948 464 R1 994 183 R4 772 727 R11 500 000 R11 900 000

2011 R448 670 R885 591 R1 844 104 R4 555 071 R10 800 000 R6 959 746

2010 R404 953 R824 548 R1 741 085 R4 131 216 R9 397 035 R7 369 577

Smal

l

2014 R4 157 031 R7 761 444 R15 800 000 R32 300 000 R66 000 000 R37 200 000

2013 R3 483 462 R6 773 239 R13 500 000 R27 500 000 R52 700 000 R33 200 000

2012 R3 010 113 R5 547 203 R11 900 000 R24 700 000 R49 900 000 R26 600 000

2011 R2 892 425 R5 090 106 R11 100 000 R23 200 000 R46 100 000 R26 100 000

2010 R2 609 352 R4 855 111 R10 000 000 R20 700 000 R45 100 000 R22 600 000


Med

ium

2014 R15 100 000 R31 700 000 R62 300 000 R112 000 000 R226 000 000 R128 000 000

2013 R14 200 000 R27 900 000 R55 500 000 R107 000 000 R219 000 000 R114 000 000

2012 R12 000 000 R27 600 000 R53 100 000 R98 100 000 R233 000 000 R127 000 000

2011 R11 300 000 R25 700 000 R49 600 000 R94 700 000 R204 000 000 R113 000 000

2010 R9 554 111 R21 300 000 R41 700 000 R82 300 000 R150 000 000 R115 000 000

Finance and Business services




Mic

ro

2014 R337 917 R704 076 R1 449 114 R3 152 609 R6 491 484 R6 623 004

2013 R305 150 R653 265 R1 335 936 R2 894 164 R6 023 748 R3 725 459

2012 R313 895 R655 140 R1 372 133 R3 054 186 R6 602 462 R3 943 490

2011 R304 243 R626 967 R1 332 370 R2 920 888 R6 297 403 R3 930 193

2010 R269 436 R577 176 R1 233 400 R2 681 069 R5 834 925 R11 200 000

Smal

l

2014 R2 175 886 R4 346 185 R8 610 133 R17 800 000 R34 500 000 R21 600 000

2013 R1 960 759 R3 860 149 R7 974 736 R16 100 000 R33 100 000 R20 300 000

2012 R1 973 078 R3 919 475 R8 197 198 R17 200 000 R34 300 000 R19 600 000

2011 R1 831 528 R3 680 475 R7 574 561 R16 400 000 R32 900 000 R17 000 000

2010 R1 677 519 R3 331 999 R6 790 853 R14 400 000 R29 200 000 R14 100 000

Med

ium

2014 R5 755 203 R12 000 000 R31 900 000 R66 700 000 R131 000 000 R66 500 000

2013 R4 572 902 R10 200 000 R27 500 000 R59 500 000 R122 000 000 R70 900 000

2012 R5 134 380 R11 200 000 R28 300 000 R68 500 000 R141 000 000 R72 900 000

2011 R4 518 368 R10 000 000 R27 100 000 R60 500 000 R127 000 000 R64 100 000

2010 R3 673 353 R8 136 818 R22 800 000 R49 900 000 R99 700 000 R60 600 000





Mic

ro

2014 R421 828 R831 785 R1 663 113 R3 369 674 R5 973 545 R3 104 873

2013 R395 917 R772 188 R1 556 050 R3 189 168 R5 593 132 R2 843 394

2012 R354 408 R728 253 R1 449 540 R2 913 890 R5 043 019 R2 580 333

2011 R349 948 R689 817 R1 395 402 R2 753 953 R4 638 287 R2 510 328

2010 R322 568 R635 263 R1 308 784 R2 609 056 R4 506 721 R2 316 796

Smal

l

2014 R1 859 381 R3 575 678 R6 540 439 R13 000 000 R25 900 000 R12 700 000

2013 R1 589 109 R2 937 132 R5 812 684 R11 300 000 R22 300 000 R11 000 000

2012 R1 515 025 R2 699 170 R5 171 360 R10 300 000 R20 600 000 R9 945 911

2011 R1 472 700 R2 611 568 R5 116 096 R9 688 370 R19 800 000 R11 300 000

2010 R1 364 598 R2 553 860 R4 801 414 R9 102 766 R17 700 000 R8 411 177

Med

ium

2014 R4 924 312 R10 200 000 R20 700 000 R51 900 000 R93 700 000 R45 800 000

2013 R4 654 565 R8 751 606 R18 800 000 R53 100 000 R117 000 000 R68 300 000

2012 R3 410 235 R8 460 111 R21 600 000 R50 500 000 R102 000 000 R72 500 000

2011 R4 018 911 R7 380 810 R19 600 000 R47 200 000 R93 900 000 R54 800 000

2010 R2 605 832 R4 832 946 R16 700 000 R41 400 000 R81 300 000 R55 200 000

Documents

UPDATE OF SCHEDULE 1 OF THE NATIONAL SMALL … · Final report objective The objective of this report is to: Report back on the quantitative analysis on the definition update for