SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Investigate the possibilities of establishing and running a small business enterprise (SMME) 
SAQA US ID UNIT STANDARD TITLE
10386  Investigate the possibilities of establishing and running a small business enterprise (SMME) 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2002-06-12  2004-12-02  SAQA 0742/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2005-12-02   2008-12-02  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
117244  Investigate the possibilities of establishing and running a small business enterprise (SMME)  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
Learners who achieve this unit standard know their own strengths and weaknesses and can use their self-knowledge to make a decision on a possible business option for self-employment.

The qualifying learner is capable of:
  • Identifying and researching the potential for a SMME as an own business.
  • Identifying the risk associated with a SMME.
  • Explaining the financial aspects involved in running a SMME.
  • Making and supporting a decision as to whether to establish a SMME. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
    1. SMMEs include vendors, franchises, brokerages, spaza shops, IT services, cleaning services, underwriting agents, etc.
    2. Poor financial management includes poor cash flow planning, lack of understanding of overdraft requirements, poor management of debtors and creditors, bad debts, unplanned growth, poor screening of debtors, inadequate financial controls.
    3. Short term insurance needs include building, fire, theft, stock, vehicle, and movable assets.
    4. Long term insurance needs include key-man insurance, temporary disablement, buy and sell agreements with partners, death cover, cover to repay business loans, computer insurance, etc. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Identify and research the potential for a SMME as an own business. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Personal strengths, weaknesses, abilities and passions are analysed and a personal profile is compiled in order to match personal traits and abilities to a business opportunity. 

    ASSESSMENT CRITERION 2 
    2. A personal profile is matched to type of work, product or service that has potential as an SMME. 

    ASSESSMENT CRITERION 3 
    3. Training required to ensure the success of a SMME is identified and a decision is made on when and where to access training. 

    ASSESSMENT CRITERION 4 
    4. The need for the identified product or service and possible competition is researched in a selected area and a decision is made about possible distribution channels. 

    ASSESSMENT CRITERION 5 
    5. A decision is made and supported on a suitable location for a selected SMME. 

    ASSESSMENT CRITERION 6 
    6. Municipal by laws and other constraints on trade are investigated for a selected SMME in a specific location. 

    ASSESSMENT CRITERION 7 
    7. The importance of networking for a SMME is explained with examples. 

    SPECIFIC OUTCOME 2 
    Identify the risk associated with a SMME. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The financial risks encountered by SMMEs are described with examples. 

    ASSESSMENT CRITERION 2 
    2. Risks associated with being an employer are explained for a SMME. 

    ASSESSMENT CRITERION 3 
    3. The need for advertising and marketing by a SMME is explained and an indication is given of the associated risks. 

    ASSESSMENT CRITERION 4 
    4. Risks associated with growth are discussed for three different scenarios. 

    ASSESSMENT CRITERION 5 
    5. The insurance needs of a SMME are investigated for a specific enterprise. 

    ASSESSMENT CRITERION 6 
    6. The risks associated with stock and other business assets are described and an indication is given of possible measures to reduce the risk. 

    SPECIFIC OUTCOME 3 
    Explain the financial aspects involved in running a SMME. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concepts of start up and working capital are explained with reference to a specific SMME. 

    ASSESSMENT CRITERION 2 
    2. The relationship between cash flow and profit is explained for three case studies. 

    ASSESSMENT CRITERION 3 
    3. Financial controls required to ensure that a business is viable are explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The implications of poor financial management are explained with examples. 

    ASSESSMENT CRITERION 5 
    5. The types of contract that a SMME could enter into are named and a contract wording is interpreted and explained in plain language. 

    ASSESSMENT CRITERION 6 
    6. The tax responsibilities of a SMME are explained and an indication is given of when a business is liable for each form of tax. 

    SPECIFIC OUTCOME 4 
    Make and support a decision on whether to establish an SMME. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of an entrepreneur is explained with reference to risk. 

    ASSESSMENT CRITERION 2 
    2. Three selected SMMEs are surveyed to establish the service levels required for success. 

    ASSESSMENT CRITERION 3 
    3. A decision is made to establish or not establish a SMME supported by the findings of an investigation. 

    ASSESSMENT CRITERION 4 
    4. Three selected SMMEs are surveyed to establish quality of produce and potential productivity required for success. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA,
    INSQA framework for assessment and moderation. 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner can identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in deciding whether establish an enterprise and where it should be located.

    The learner can reflect on and explore a variety of strategies to learn more effectively in knowing his/her own strengths and weaknesses and deciding how to access appropriate training.

    The learner can explore education and career opportunities by investigating the possibilities of running a small business. 

    UNIT STANDARD CCFO WORKING 
    The learner can work effectively with others as a member of a community in surveying the need for a business and the service levels necessary for success. 

    UNIT STANDARD CCFO ORGANISING 
    The learner can organise and manage him/herself and his/her activities responsibly and effectively in matching his/her personal profile to a possible business enterprise and planning for self-employment. 

    UNIT STANDARD CCFO COLLECTING 
    The learner can collect, organise and evaluate information researching the need for a service and possible competition, selecting a location for an enterprise and investigating municipal by laws and constraints on trade. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner can communicate effectively using visual, mathematical and language skills in oral and written presentation when supporting a decision to establish a business enterprise and interpreting a contract wording. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner can demonstrate an understanding of the world as a set of related systems by relating own personality traits and strengths to selecting a business opportunity and the risk associated with SMMEs. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner can participate as a responsible citizen in the life of the local and national community by investigating possibilities for self-employment.

    The learner can be culturally and aesthetically sensitive across a range of social contexts in deciding on the need for and location of a SMME. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by 117244, which is 'Investigate the possibilities of establishing and running a small business enterprise (SMME)', Level 4, 3 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Fundamental  20639   National Certificate: Healthcare Benefits Administration: Claims Assessing  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Fundamental  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Fundamental  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2006-10-08  Was INSETA until Last Date for Achievement 
    Fundamental  21796   National Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2005-06-12  Was INSETA until Last Date for Achievement 
    Fundamental  20188   National Certificate: Real Estate  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  SERVICES 
    Elective  65110   Further Education and Training Certificate: Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2009-03-14  As per Learning Programmes recorded against this Qual 
    Elective  67462   Further Education and Training Certificate: Music Industry: Sound Technology  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  48701   National Certificate: Community-Based Language Practice  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30   
    Elective  48640   National Certificate: Financial Services Management  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  INSETA 
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  Was INSETA until Last Date for Achievement 
    Elective  48669   National Certificate: Live Event Technical Production  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  CATHSSETA 
    Elective  48792   Certificate: Broadcast Engineering  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MICTS 
    Elective  48671   National Certificate: Music Industry: Sound Technology  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MICTS 
    Elective  48784   National Diploma: Translation  Level 5  NQF Level 05  Reregistered  2021-06-30  CHE 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Davest Trading 36 Pty Ltd 
    2. Discovery Life Ltd 
    3. Faisit (Pty) Ltd 
    4. Footprint Media academy Pty ltd 
    5. Intec College 
    6. Invuya Institute of Learning (Pty) Ltd 
    7. Maraba Event and Entertainment Pty Ltd 
    8. Masifunde Training Centre (Pty) Ltd 
    9. NEMISA 
    10. Oakfields College 
    11. Oakfields College (Head Office) 
    12. Pracical Audio Solution (Pty) Ltd 
    13. Revolution Media Academy (Pty) Ltd 
    14. SABC Limited 
    15. South African Film Institute 
    16. South West Media College (Pty) Ltd 
    17. Umfolozi FET College - Central Office 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.