(Industrial Development Corporation), under the Economic Development Department of National Government
The IDC is a financially self-sustainable entity and plays a major role in entrepreneurship development. The following sector/industry/development area specific funding options exist:
- Gro-E Scheme (green industries: renewable energy, energy efficiency, pollution mitigation, waste management and recycling, and biofuels).
- Risk Capital Facility Programme (PDI below R30 million investment).
- Support Programme for Industrial Innovation (promotes innovation and technology development in the form of non repayable grant of between 50% and 85%).
- Transformation and Entrepreneurship Scheme (finance for marginalised groups in start-up businesses, expansions or expansionary acquisitions. This fund also embraces the Women Entrepreneurial Fund; People with Disabilities Fund; Equity Contribution Fund; Development Fund for Workers; and Community Fund).
- Green Energy Efficiency Fund (supports the introduction of self-use renewable energy technologies).
- Women Entrepreneurial Fund (finance for women-based businesses with total asset base of up to R80 million and up to R30 million per transaction).
- Distressed Fund (structured funding format: debt or equity with minimum of R1 million).
- Manufacturing Competitiveness Enhancement Programme (funding for existing manufacturers to induce competitiveness and job retention. Working capital facility of R50 million, term – up to four years, 6% interest).
Each programme has very specific criteria and one should assess the set requirements of each. Some options are debt capital or pure financing and others grant offerings, as managed for national government. In general, projects must show economic viability and financial sustainability; must fit into the IDC’s mandated sectors; must meet the empowerment limits set by the particular fund; and should not be less than R1 million.
Call: +27 (0)11 269 3000 / 0860 693 888 (Make sure that you quote the exact fund you would like to apply for.)
An online application platform is available. Visit www.idc.co.za and click on ‘Login to IDC Direct’
Find more and specific information on each fund here.
Government Funding And Grants For Small Businesses
Your much needed capital investment could come from government funding and grants. Here is a comprehensive guide to government funding available in South Africa.
Many new small businesses go through the struggle of finding capital to start-up of expand their businesses. Government funding and grants can be a worthwhile way to get the funds that you need.
There are a lot of important things you need to be aware of such as: Strict criteria, a lot of paperwork and maybe even a very long wait. It is worth it in the end so have a look and see which government funding and grants you qualify for.
What are government grants?
This is when a project or initiative is awarded government funding for some or all of its financial support. The business grants do not need to be repaid or accrue interest and have strict guidelines for application. Government funding is linked with efforts such as black economic empowerment, job creation and developing the economy.
Here is a list of some of the government grants available for business funding in South Africa:
- Automotive Investment Scheme (AIS)
- Black Business Supplier Development Programme (BBSDP)
- Clothing and Textile Competitiveness Improvement Programme (CTCIP)
- Critical Infrastructure Programme (CIP)
- Film Incentive Programme
- Business Process Services (BPS)
- Capital Projects Feasibility Programme (CPFP)
- Support Programme for Industrial Innovation (SPII)
- National Youth Development Agency (NYDA)
- National Empowerment Fund (NEF)
The Definitive List Of South African Business Incubators For Start-Ups
Are you looking for an incubator to ensure the sustainability of your start-up? This comprehensive list of South African incubators will set you in the right direction.
70-80% of small businesses don’t survive their first year, says Proudly South African CEO, Eustace Mashimbye, with only 9% surviving 10 years. Incubators were developed to reduce the chances of failure of start-ups by offering sustainable and fundamental entrepreneurial support.
Incubators enable entrepreneurs and innovators to find the necessary support and resources to build and maintain a successful start-up. An incubator can offer you:
- A creative space to work out and discuss every aspect of your business
- More resources and experience than you have when starting out
- The opportunity to develop a network of other entrepreneurs and start-ups to sustain your business in the future.
“Getting involved with an incubator requires more than simply filling out an application. You need to get clear about which type of incubator would be the best fit. One of the most damaging mistakes a brand-new company can make is choosing one that doesn’t thoroughly meet its needs,” explains Nav Athwal, founder and CEO of RealtyShares.
Here are 58 South African business incubators for start-ups and what they can offer you:
- Global Cleantech Innovation Programme for SMEs
- Red Bull Amaphiko Academy
- Aurik Business Accelerator
- Transnet Enterprise Development Hub
- The Techstars Foundation
- Anglo’s Zimele
- Shanduka Black Umbrellas
- SEDA Ekurhuleni Base Metals Incubation Programme
- Silulo Business Incubator
- Maxum Business Incubators
- Mpumalanga Stainless Initiative
- Edge Growth
- Timbali Technology Incubator
- New Ventures Studio
- Thomson Reuters Labs
- Seda Automotive Technology Centre
- Meltwater Entrepreneurial School of Technology
- Seda – Agricultural & Mining Tooling Incubator
- Spark* South Africa
- Garden Route ICT Incubator
- The Khayelitsha Bandwidth Barn
- Biofuels Business Incubator
- French Tech
- BioPark Business Incubator
- The Founder Institute
- Seda NMB ICT Incubator
- Tshimologong Precinct
- Softstart BTI
- African Rose
- The Grindstone Accelerator
- Riversands Incubation Hub
- mLab Southern Africa
- South African Renewable Energy Business Incubator
- Enterprise Elevator
- The Cape Innovation and Technology Initiative
- The Awethu Project
- The Creative Counsel incubator programme
- Green Pioneer Accelerator
Investment Support For Black Business
Business development services to improve core competencies, managerial capabilities and competitiveness.
The department of trade and industry’s Black Business Supplier Development Programme is a cost-sharing grant, which offers support to black-owned enterprises in South Africa. The DTI contributes 90% of the cost of a project and the applicant 10%.
The programme aims to fast-track existing SMMEs that exhibit good potential for growth, grow black-owned enterprises by fostering linkages between black SMMEs and corporate and public sector enterprises, complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises, and enhance the capacity of grant recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities.
The business must be majority black-owned (50 plus one share) and have a significant representation of black managers on the management team. The maximum annual turnover is R12 million per annum, and the business must have a trading history of least one year. Businesses can qualify for a grant to the maximum amount of R100 000. The requested amount should not exceed 25% of the entity’s previous year’s turnover.
Applications must include a detailed business plan, financial statements, turnover projections and a tax clearance certificate.
Go to www.dti.gov.za
Snapshots2 weeks ago
27 Of The Richest People In South Africa
Women Entrepreneur Successes2 weeks ago
How Jacqui van der Riet Went From Receptionist To Co-Owning A R230 Million Business
Self Development6 days ago
5 Inspiring Quotes From Madiba To Stir You Into Action On Mandela Day
Self Development2 weeks ago
25 Bad Words That Make Other People Feel Inferior
Angel Investors4 days ago
A Comprehensive List Of Angel Investors That Fund South African Start-Ups
Lessons Learnt1 day ago
11 Things Very Successful People Do That 99% Of People Don’t
Ongoing Learning1 day ago
15 Of The Best And Most Unusual Online Courses For Entrepreneurs
Small Business5 days ago
Even SMEs Can Use Big Data: Here’s How