Entrepreneur funding is often a major barrier to entry for many individuals looking to start their own businesses. In South Africa, there are various options for entrepreneurs to get funding for their business ventures.
If you are looking for entrepreneur funding in South Africa, you should do your research to find out as much as possible about how to get funds.
Before applying for entrepreneur funding in South Africa, it’s important to make sure that you know what the basic requirements are.
National Youth Development Agency (NYDA):
Established in 2008, the NYDA has moved more toward microfinance grant provisions. The grant provides both financial and non-financial support to young entrepreneurs. The grants are available from R1000 to a maximum of R100 000.
The type of support that is offered is also in the form of mentorship programmes, a voucher programme, market linkages and entrepreneurship development programme.
The grants from the NYDA are also offered to formal and informal businesses in the start-up phase or in the development stage.
They are also provided to co-operatives or to community development and facilitation projects.
Department of Trade and Industry (DTI):
The DTI seeks to broaden participation in entrepreneurial activity to all, with emphasis on youth development, women and B-BBEE.
Funding is offered in the form of cost-sharing incentives, loans or grants and mentorship programmes.
Industrial Development Corporation (IDC):
Established in 1940, the IDC was designed to promote economic and industrial development. The IDC funds projects that are high-impact and labour intensive.
What do you need to qualify for entrepreneur funding in South Africa?
Each institution has its own qualifying criteria, but there are some criteria that are common. For instance, your business needs to be registered and you need to know how much money you need and how you will be using the money.