Starting a business requires commitment, resilience, and most importantly, money. Access to funding is a major stumbling block when starting a business. Here are a few places you can look at before you give up your dream.
SMME’s are important for any economy. As a small business owner, your role in growing the South African economy cannot be underestimated.
“Medium and Micro-sized Enterprises (SMMEs) have been identified as productive drivers of inclusive economic growth and development in South Africa and around the world. The small business sector in South Africa is a critical part of the national economy with the government’s National Development Plan 2030 (NDP 2030) looking to SMMEs to be major sources of employment and drivers of growth in the economy,” says Unathi Maholwana, Coega Development Corporation’s (CDC’s) SMME Program Manager.
Before you pack up your dream, consider looking at these institutions for assistance.
Khula Enterprise Finance LTD
Khula Enterprise Limited was started in 1996. Over the years it has become one of the foremost lenders for Small Businesses. The state-owned enterprise assists with various delivery channels including commercial banks, retail financial intermediaries (RFIs), and microcredit outlets (MCOs).
The National Empowerment Fund (NEF)
The National Empowerment Fund is aimed at increasing Black people’s participation in the economy. “The NEF provides funds to black entrepreneurs and groups to facilitate access to finance in support of Broad-Based BEE in terms of government legislation. The investment activities of the NEF are guided by an investment policy that seeks to ensure that investments create real economic empowerment for black people without deviating from sound economic principles,” the organisation says.
. Business Supplier Development Program (BBSDP)
Black Business Supplier Development Program (BBSDP) works under the administration of the Department of Small Business Development. This program offers grants to any commercial business, existing for more than one year, that is more than 50% owned by persons from previously disadvantaged communities. Grants can be used to acquire assets or professional services and training, and vary from 50% to 80%, with a lifetime maximum amount per business of R1 million.
Finally, if you are looking for support in other business avenues, the Small Enterprise Development Agency (Seda) supports small businesses all over the country. There is a Seda branch in every district municipality. The agency supports the growth of SMEs. By providing them with the following.
- Information, advice, and referrals
- Tender information and advice
- Import and export training
- Trade information
- Business assessments and business mentoring
- Technical support
- Market access
- Business linkages