Small and micro business sectors are the main source of real employment in the economy as they can on average employ 12 people. By creating an environment that is friendlier to small businesses and actively encouraging the sector, the country is in a better position to create jobs.
Here is a list of funding and grants that small business owners can explore.
GOVERNMENT FUNDS
The government created government funding to extend finances to previously disadvantaged South Africans for black economic development. Much needed capital investment can come from government funding opportunities.
Here are a few examples of government funding that focuses on black entrepreneurs:
National Empowerment Fund (NEF)
The NEF is a part of the government’s development mandate to encourage black participation in business and entrepreneurship. It helps to assist black entrepreneurs in achieving funding and it’s available for start-up and existing businesses. This fund aims to assist black youth, women and men, communities, and businesses to achieve sustainable success. The NEF has four main channels of funding that consist of subdivisions which are iMbewu Fund, uMnotho Fund, Rural and Community Development Fund and Strategic Projects.
Contact Details for NEF Funding
Industrial Development Corporation (IDC) Funding
IDC funding is available to those who have an existing business or wish to start a new one, specifically for those that have visions of job creation along with serving previously disadvantaged communities.
The IDC supports B-BBEE and actively boosts and promotes black-owned and managed business along with those with employment equity. It aims at developing the skills of black employees and business owners, by supporting local, regional, provincial, and national government projects.
The different types of IDC Funding are Development Funds, Agro-Processing Competitiveness Fund, Product Process Development Scheme (PPD) Risk Capital Facility Programme, Transformation and Entrepreneurship Scheme and Green Energy Efficiency Fund.
Contact the IDC for funding
Small Enterprise Finance Agency (SEFA)
SEFA provides direct funding to businesses with loans between R50 000 and R3 million. The three different ways to access loans are directly to business owners, via retail finance intermediaries, and through banks using credit guarantee schemes including Khula. They offer Bridging loans, Term loans and Structured finance.
Contact SEFA for funding
Read the full story here
Share this article:
