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:

Develop a business plan for a small business

SAQA US ID	UNIT STANDARD TITLE
10385	Develop a business plan for a small business
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	5
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2002-06-12	2004-02-12	SAQA 0742/02
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2005-02-12		2008-02-12

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
117241	Develop a business plan for a small business	Level 4	NQF Level 04	5

PURPOSE OF THE UNIT STANDARD

Learners who achieve this unit standard produce a comprehensive business plan, which could be used to guide the new business, and/or act as an application for finance.

The qualifying learner is capable of:

Describing the types small business that is legal in South Africa.

Explaining the registrations required for a small business.

Identifying the importance of market research.

Understanding the financial aspects of starting a small business.

Compiling a basic business plan based on a budget for 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

1. Legal business types include sole proprietor, partnerships, close corporations, and Pty companies
2. Small business examples include spaza shops, doctors firms, building contractors, IT services, fast food franchises, cleaning services, printing businesses, vending machines, educational services etc.
3. The legal registrations required include, PAYE, VAT, UIF, RSC, COID, Skills Development Levy and Industry registrations.
5. Typical leasing issues include cost per square metre, length of leases, lease deposits, extra charges for security, parking, payments in advance, and interest on late payments.
6. Typical vehicle issues include type of contract (HP, lease), deposits required, impact on cash flow, interest rates, costs of settling early, insurance costs, running costs, security and control of the vehicle.
7. IT issues such as purchase or lease, tax implications of each option, the need to upgrade equipment, software piracy implications, Internet access, web sites, maintenance and training of staff.
8. Other income and expense items include, sales, interest received and paid, cost of sales, accounting fees, salaries and wages, and staff development costs, bank charges, vehicle and IT related fees, rent and electricity, office refreshments, repairs and maintenance, printing and stationery etc.
9. The elements of a business plan include

An introduction and description of the business.

Indication of some market research and/or basic need for the product or service

Proposed business structure and location

Terms of the lease

An analysis of competition

A basic marketing plan

The management and staffing of the business

Budgeted income statements (usually for 3 years)

Cash flow projections

Personal investment and skills

Other personal information demonstrating the ability to run a successful business.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Describe the various types of business and the registrations required.

OUTCOME NOTES

Describe the various types of business and the registrations required for a small business in South Africa.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The types of small business that are legal in South Africa are described and an indication is given of the advantages and disadvantages of each.

ASSESSMENT CRITERION 2

2. The legal requirements of each kind of business entity are explained and an indication is given of the cost of registration in each case.

ASSESSMENT CRITERION 3

3. The taxation implications of operating each type of entity are researched and compared and an indication is given of the best type of business in specific circumstances.

ASSESSMENT CRITERION 4

4. The principles of input and output VAT are explained, and the net output/input VAT is calculated for three examples.

ASSESSMENT CRITERION 5

5. Registration with the South African Revenue Services (SARS) is discussed and an indication is given of the implications of non-compliance.

ASSESSMENT CRITERION 6

6. The current rate of the various taxes paid to SARS are indicated in a table and calculated for three examples.

ASSESSMENT CRITERION 7

7. The purpose of the skills levy is discussed, and a list compiled of the SETAS, which would be applicable to a range of businesses.

ASSESSMENT CRITERION 8

8. An employer's responsibility to register and pay for UIF is described and the contributions are calculated for 3 examples.

ASSESSMENT CRITERION 9

9. The purpose and benefits of COID are described, and the amounts due are calculated for 3 examples.

ASSESSMENT CRITERION 10

10. Industry specific registrations are identified and the addresses and contact numbers for local registration are researched for own type of business.

SPECIFIC OUTCOME 2

Discuss the need for market research when starting a new business.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The importance of market research in planning a new business is discussed and an indication is given of the dangers of not doing a proper research viability study.

ASSESSMENT CRITERION 2

2. The typical target market and consumer profile is identified for five businesses.

ASSESSMENT CRITERION 3

3. The current competition for potential businesses in 3 locations is researched and recommendations made as to a potential location.

SPECIFIC OUTCOME 3

Demonstrate knowledge and understanding of the financial aspects of starting a small business.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Possible sources of finance for a small business are researched and presented and a decision is made on the advantages and disadvantages of each.

ASSESSMENT CRITERION 2

2. Possibilities for small business support are investigated in terms of financial, strategy and training needs.

ASSESSMENT CRITERION 3

3. The issue of providing suretyship for a business loan is discussed and a substantiated opinion is expressed as to the risk.

ASSESSMENT CRITERION 4

4. Financial implications and alternatives for capital asset requirements are discussed in relation to purchasing or leasing premises and vehicles, IT requirements and other business expenses.

SPECIFIC OUTCOME 4

Compile a business plan based on a budget for an SMME.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The typical income and expense items are described for a range of SMMEs.

ASSESSMENT CRITERION 2

2. The purpose of a business plan is explained in relation to evidence of viability of the budget.

ASSESSMENT CRITERION 3

3. The basic elements of a business plan for a loan application are explained with examples.

ASSESSMENT CRITERION 4

4. A basic business plan is compiled and presented for a SMME of choice.

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. 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 is able to identify, solve problems and make decisions relating to the best legal type of business to use in a variety of situations.

UNIT STANDARD CCFO ORGANISING

The learner is able to organise and manage him/herself effectively when researching the various forms of finance available to SMMEs, registrations required for a SMME and possibilities for small business support.

UNIT STANDARD CCFO COLLECTING

The learner is able to collect, organise and critically evaluate information relating to the fixed asset and capital requirements of a small business.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentation when designing and presenting a business plan for a loan application.

UNIT STANDARD CCFO CONTRIBUTING

The learner is able to participate as a responsible citizen in the life of local, national and global communities, by beginning to understand the responsibilities and implications of running a business.

UNIT STANDARD NOTES

This unit standard has been replaced by 117241.

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Core	48744	Further Education and Training Certificate: Beauty (Nail Technology)	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2011-02-16	Was SERVICES until Last Date for Achievement
Core	48812	Further Education and Training Certificate: Heritage Practice	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	CATHSSETA
Fundamental	20638	National Certificate: Collective Investment Schemes	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	INSETA
Fundamental	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
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
Elective	36453	National Certificate: Cake Decorating and Sugar Art	Level 3	NQF Level 03	Passed the End Date - Status was "Reregistered"	2016-12-31	FOODBEV
Elective	24494	National Certificate: Fresh Meat Processing	Level 3	NQF Level 03	Passed the End Date - Status was "Reregistered"	2008-02-06	Was FOODBEV until Last Date for Achievement
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	Passed the End Date - Status was "Reregistered"	2023-06-30	As per Learning Programmes recorded against this Qual
Elective	48808	Further Education and Training Certificate: Performing Arts	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	CATHSSETA
Elective	48640	National Certificate: Financial Services Management	Level 4	Level TBA: Pre-2009 was L4	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	48669	National Certificate: Live Event Technical Production	Level 4	Level TBA: Pre-2009 was L4	Passed the End Date - Status was "Reregistered"	2023-06-30	CATHSSETA
Elective	48792	Certificate: Broadcast Engineering	Level 5	Level TBA: Pre-2009 was L5	Passed the End Date - Status was "Reregistered"	2023-06-30	MICTS
Elective	48671	National Certificate: Music Industry: Sound Technology	Level 5	Level TBA: Pre-2009 was L5	Passed the End Date - Status was "Reregistered"	2023-06-30	MICTS
Elective	49023	National Diploma: Liaison Interpreting	Level 5	NQF Level 05	Passed the End Date - Status was "Reregistered"	2023-06-30	QCTO
Elective	48784	National Diploma: Translation	Level 5	NQF Level 05	Passed the End Date - Status was "Reregistered"	2018-12-31	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.	Facilitation Development (PTY) LTD
2.	Greater Tzaneen Community Foundation
3.	HILLCROSS BUSINESS SCHOOL (PTY
4.	Intercept Consulting and Training Solutions
5.	Jeppe College of Commerce and
6.	LS Multi Copter Projects and Services Pty Ltd
7.	Metanoia Ratings PTY LTD
8.	OPELONG BUSINESS INSTITUTE (PT
9.	Q-NOTE DIGITAL MUSIC ACADEMY
10.	Sibikwa Arts Centr
11.	SUPREME ICT CONSULTANTS
12.	Together Lifestyle Resort Pty Ltd
13.	Varsity Institute of Science & Technology (Pty)Ltd
14.	VUTHLARI MARKETING CONSULTING