Starting a small business comes with various challenges. More often than not the main challenge faced by small business owners is that of finance. While approaching the bank for a loan may be an option, there are also other alternatives such as grants.
There are government grants available for those who meet specific criteria. Government in South Africa has created grants and assistance programmes to help get start-ups off the ground.
What is a government grant?
It is a form of funding from the government that does not need to be repaid. It does not accrue interest.
Grants are usually granted to businesses that are in line with the government’s mandate of developing the economy and creating jobs.
Selection criteria can be quite strict and the application process can be intensive.
The funds are also required to be spent in a manner specified by the provider.
By visiting the Department of Trade and Industry (DTI’s) website www.thedti.gov.za you will find more information about small business grants. Different grant providers offer various incentives.
- Businesses need to be majority black-owned
- Businesses must have a specific turnover
- They need to have been trading for a minimum of one year
- They must be registered, with a tax clearance certificate, VAT number, etc.
- The business must be compliant with regulations set by the CIPC and SARS
- Applicants should also have a detailed business plan
- They should also provide valid details of directors and shareholders
- A motivation letter should be provided
- Applicants must also provide projected financial statements
As a business owner, it’s important to do the necessary research into your field of trade to ensure maximum success. If you‘re in need of finance, there are various options available to you. Find out which ones will be the most suitable for your business and apply sooner rather than later.