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: 

Investigate the possibilities of establishing and running a small business enterprise (SMME) 
SAQA US ID UNIT STANDARD TITLE
117244  Investigate the possibilities of establishing and running a small business enterprise (SMME) 
ORIGINATOR
SGB Insurance and Investment 
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
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10386  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, 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 
    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 
    A personal profile is matched to type of work, product or service that has potential as an SMME. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    ASSESSMENT CRITERION 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 a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    This Unit Standard supports in particular, the following critical cross field outcomes at Unit Standard level:
  • 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 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.
  • The learner can explore education and career opportunities by investigating the possibilities of running a small business. 

  • UNIT STANDARD LINKAGES 
    N/A 


    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. 

    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 ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard has replaced 10386 which was "Investigate the possibilities of establishing and running a small business enterprise (SMME)", Level 4 with 3 credits 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  67354   Further Education and Training Certificate: Piano Technology  Level 4  NQF Level 04  Reregistered  2023-06-30  CATHSSETA 
    Core  65669   Further Education and Training Certificate: Thoroughbred Horse Racing  Level 4  NQF Level 04  Reregistered  2023-06-30  CATHSSETA 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Reregistered  2023-06-30  INSETA 
    Elective  50285   National Certificate: Professional Driving  Level 3  NQF Level 03  Reregistered  2023-06-30  TETA 
    Elective  61669   Further Education and Training Certificate: Community Water, Health and Sanitation Facilitation  Level 4  NQF Level 04  Reregistered  2023-06-30  EWSETA 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Elective  58350   Further Education and Training Certificate: Perishable Produce Exportation  Level 4  NQF Level 04  Reregistered  2023-06-30  AgriSETA 
    Elective  73298   Further Education and Training Certificate: Photography  Level 4  NQF Level 04  Reregistered  2023-06-30  MICTS 
    Elective  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  INSETA 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  49123   National Certificate: Journalism  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2007-10-18  Was MICTS until Last Date for Achievement 
    Elective  58978   National Certificate: Journalism  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MICTS 
    Elective  49023   National Diploma: Liaison Interpreting  Level 5  NQF Level 05  Reregistered  2023-06-30  QCTO 


    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. AAH Skills and Development 
    2. ACADEMY OF LEARNING JHB CENTRAL 
    3. African Resources & Financial Training (Pty) Ltd 
    4. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    5. Alcari Learning Centre (Pty) Ltd 
    6. Algoa Bus Company 
    7. All-in-one Driving Academy 
    8. ALSTOM JOHN THOMPSON (PTY) LTD CAPE TOWN 
    9. AMBROSER SOLUTIONS (PTY) LTD 
    10. Andebe Training and Skills Development 
    11. ARBINET TRAINING & DEVELOPMENT 
    12. Areka Logistics Solution 
    13. Artshub Institute (Pty) Ltd 
    14. ATTI Nelspruit Pty Ltd 
    15. AZIFANI PROJECTS AND TRANSPORT (PTY) LTD 
    16. BALOMAT SKILLS TRAINING ACADEMY 
    17. BANTUBANYE INVESTMENTS 
    18. Barloworld Transport Solutions 
    19. Bolton Business College & Computer Studies 
    20. BRC Solutions (Pty) Ltd 
    21. Buscor 
    22. Centre for Logistics Excellence (Pty) Ltd 
    23. CHAMDOR DRIVER TRAINING CC 
    24. CKP Development Agency (Pty) Ltd. 
    25. De Vries Management & Training Services cc 
    26. Dee's Training (PTY) LTD 
    27. Dees Driver Training Centre 
    28. DIONYSUS SKILLS DEVELOPMENT INITIATIVE PTY LTD 
    29. DSBI (Pty) Ltd 
    30. Eastcape Training Centre 
    31. EDU - FLEET 
    32. EECTRICAL CONTRACTORS ASSOCIATION - ECA 
    33. EJW Financial Services (Pty) Ltd 
    34. EMINENCE BUSINESS SOLUTIONS (PTY) LTD 
    35. ESKOM DISTRIBUTION NORTH WESTERN REGION, BLOEMFONTEIN 
    36. Executive People Development Solutions (Pty) Ltd 
    37. Faisit (Pty) Ltd 
    38. Falcon Business Institute (Pty) Ltd 
    39. Freeway Training CC 
    40. Gauteng Central College PTY LTD 
    41. Gerotek Test Facilities 
    42. Golden Arrow Bus Services 
    43. He and She Driver Training Centre 
    44. IALE School of Advanced Learning and Education (Pty) Ltd 
    45. Ikaheng HR Services Pty Ltd 
    46. Imperial Logistics Group t/a Dedicated Contracts 
    47. IMPILONHLE TRADING & PROJECTS 8 
    48. In Excess Trading 22 T/A ATTI Polokwane 
    49. INFRASTRUCTURE CONSULTING ENGINEERS CC 
    50. INGEN ENGINEERING PROJECTS 
    51. Inkqubela Consultants 
    52. Innovative Shared Services 
    53. Intec College 
    54. Intelligo Solutions Pty (Ltd) 
    55. Invuya Institute of Learning (Pty) Ltd 
    56. ISUNDARPARSAD HOLDINGS (PTY) LTD 
    57. IYANDA HOLDINGS (PTY) LTD 
    58. Iyanda Holdings(Pty) Ltd 
    59. KAREUBO MANAGEMENT SYSTEMS 
    60. KHANYISA GAVU TRADING 
    61. KNOWLEDGE PELE PTY LTD 
    62. Kundani Trading 
    63. Learn A Trade 
    64. Learncorp 
    65. MACT BUSINESS HUB 
    66. Makwedeng Training 
    67. Masifunde Training Centre (Pty) Ltd 
    68. Milnex - Brakpan 
    69. MMESELANE CONSTRUCTION 
    70. MOVING AHEAD DEVELOPMENT AGENCY 
    71. MUNICIPAL TRAINING & DEVELOPMENT INSTITUTE 
    72. NEW HOPE REVIVAL ORGANISATION 
    73. NOSA LOGISTICS PTY LTD 
    74. O'Keeffe & Swartz Consultants (Pty) Ltd 
    75. Octomate (Pty) Ltd 
    76. Old Mutual Life Assurance Company South Africa 
    77. Outsurance Insurance Company Ltd 
    78. Pal Passenger Bus Services 
    79. PERSEVCON CONSTRUCTION PTY LTD 
    80. Phathutshedzo Connsulting Training Provider 
    81. Phephani Learnerships cc 
    82. PRAXIS TRAINING AND CONSULTANCY (PTY) LTD 
    83. PUTCO Limited 
    84. Ray Strodl Consulting (Pty) Ltd 
    85. Ripple Effect 4 (Pty) Ltd 
    86. ROCKWELL AUTOMATION 
    87. RONNELS CONSTRUCTION PTY LTD 
    88. Safe and Eco Driving (Pty) Ltd 
    89. Sanlam Life Insurance Ltd 
    90. Sanlam Life Insurance Ltd. 
    91. SOUTH AFRICA ADVANCED SKILLS INSTITUTE 
    92. South African Film Institute 
    93. South African Transport Centre of Excellence 
    94. SOUTHERN AFRICAN YOUTH MOVEMENT 
    95. SPINA Consultancy cc Cape Town 
    96. Tasa Training Services cc 
    97. THABO Training and Services 
    98. The Media Workshop cc 
    99. The Mvula Trust 
    100. Three Brother Communication PTY LTD 
    101. Thwala Training Services (Pty) Ltd 
    102. TRY EASY ELECTRICAL SOLUTIONS (PTY) LTD 
    103. UKWAKHILE TRAINING 
    104. Umfolozi FET College - Central Office 
    105. Visual Skills School (Pty) Ltd 



    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.