Small business grants for entrepreneurship
Overview
Jaheel is a young entrepreneur and is keen to take advantage of all the ways in which his business can be funded.
As an entrepreneur, it’s vital to find the right kind of funding.
It’s also possible for organic growth without funding. In Jaheel’s case he needs to know how he can improve his chances of qualifying and being approved. He needs to do research into what it takes. He should know that the amount of time his company has been operating will be considered, along with the size of the organisation.
There are various funding options, such as:
- Angel investment
- Bank funding
- Government Grants
- Crowdfunding
- Bootstrapping
- Enterprise Development Funding
Small business grants for entrepreneurship are provided by the South African government. It is typically provided to previously disadvantaged individuals, as grants, tenders and loans. The latter often comes with lenient repayment schedules and interest rates. Funders assess whether an organisation can afford repayments before deciding. If not, small business grants may be ideal.
These grants are not required to be repaid and are intended to develop black economic development.
Small business grants for entrepreneurship include:
NEF: National Empowerment Fund
This fund was established by the government as part of its mandate to encourage black participation in business and entrepreneurship.
- IDC: Industrial Development Corporation Funding
- SEFA: Small Enterprise Finance Agency
- The Isivande Women’s Fund
- Khula SME Fund
- Incubation Support Programme.
Selection criteria can be quite strict and the application process can be intensive. This funding is usually designated for companies with the necessary BEE accreditation, tax clearance and documentation. It’s also vital for a business to have a clear credit record.
These grants can go a long way towards making it easier to achieve business goals without always having to stress on finances. It can help to buy equipment or to render services.
