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
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
Passed the End Date -
Status was "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   

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 ent