The government wants to grow the base of small businesses and, in particular, make sure that the demographics of business owners reflects the demographics of the country. As a result, it has set up a number of grants and incentives to encourage business growth. The government has also created government lending agencies such as the Industrial Development Corporation (IDC), the Development Bank of South Africa (DBSA), the National Empowerment Fund (NEF) and the Small Enterprise Funding Agency (SEFA). Each of these agencies has a clear brief to assist small businesses and specifically, previously disadvantaged business owners, to access different types of finance according to their specific mandates.
However, like banks and other lending agencies, the government funding agencies have to be self-sustaining, so they require a lot of documentation (from you), to make sure that if the money is lent to you, it will be repaid. Obviously you would need to have the skills to run the business and they will also want to do a due diligence on the business as well. Should they decide to fund your venture, they will also assign a business mentor to work with you.
To make it easier for small businesses to access government funding, we have summarised the various funds in one document called Summary of Government Funds. You'll be able to quickly read through the brief summaries and work out which funds are most suitable for your business. The Internet link for each fund is provided so that you can visit their website to read more details or find out how to application. Please make sure you read the application guidelines as many of the funds have strict criteria in terms of how you can spend the money.
If you take the finfind Finance Readiness Quiz you will also be provided with a list of Government funds that meet your specific requirements. Click on the link below to select this option.