Many government programmes provide funds and guidance to assist young people in starting or expanding their businesses.
Governmental organisations that support the growth of small businesses include the National Empowerment Fund (NEF), the Industrial Development Corporation (IDC), and the Small Enterprise Development Agency (SEDA).
During the Department of Trade, Industry, and Competition’s recent webinar on “Youth in Industries: Enterprise Development Support and Access to Markets,” they provided further information about their youth-targeted products.
National Empowerment Fund (NEF)
Nomazizi Siphondo, an investment associate at the NEF, stated that the NEF provides low-interest loans to both people and small businesses seeking to expand.
“This is to make sure that we are not killing newer businesses before they’ve taken off,” she said.
The NEF also provides training in business skills.
For further information, visit www.nefcorp.co.za/funding-solutions/funding-instruments(link is external) or call 0861 843 633.
Industrial Development Corporation (IDC)
The support provided to youth-owned businesses in a variety of industries, including mining, agriculture, chemicals, industrial infrastructure, clothing, manufacturing, and IT, was described by Manyatsa Nkutha of the IDC.
According to him, the Gro-E Youth scheme offers capital for young people-owned businesses ranging from R1 million to R50 million. The interest rate is really appealing.
Between R1 and R15 million worth of projects are funded by the Small Business Finance Unit.
SME Connect provides other business support and assists young people in creating business plans.
For more information, visit www.idc.co.za(link is external). Click on ‘funding solutions’ and then ‘special schemes’. Alternatively, call 0860 693 888.
Small Enterprise Development Agency (SEDA)
According to SEDA’s Andrew Bam, the organisation is dedicated to educating individuals about the possibility of starting one’s own business rather than being forced to work for an employer.
According to him, SEDA intends to spread this concept to both young adults who have completed their studies and those who are still in school.
Technical and vocational education and training colleges around the nation run SEDA’s Centres for Entrepreneurship and Rapid Incubator models, he said. Students who participate in these incubator programmes can start their own businesses.
For more information on SEDA’s offerings, go to www.seda.org.za(link is external) or call 0860 103 703.