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Government Funding

Government Funding & Grants Advice

Government grants and loan programmes have been set up by the government to extend funding to previously disadvantaged South African to foster black economic development.

Entrepreneur

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There is a good deal of Government sponsored non-repayable Grants and Assistance Programs for manufacturing and tourist related businesses as well as innovative R&D product development projects available in South Africa.

What is a grant?

A grant is an award of financial assistance in the form of money. The government is one of the best sources for grants. Grants have strict guidelines for applying and using the funds.

Related: Matching Your Pitch to the Funder

Grant funding agencies use grants as a way to accomplish a specific goal that the organisation wants to achieve. If your start-up fits into the right criteria, you may be able to apply for funding through a grant.

What is the difference between a loan and a grant?

The difference between a loan and a grant is that grants do not have to be repaid, but they do require a considerable amount of paperwork. The grantee is required to account for spending the money in the manner specified by the grantor.

Related: DTI funding guide

Grants funds fit broadly into two different categories – money that is sponsored by the government and money that is sponsored by corporate financial organisations.

Most of these funds have their own specific requirements, and only those businesses that fill specified requirements, get to access to these funds. Funding agencies often look for worthwhile projects such as those that might create jobs in rural areas or those that provide training to specialised groups.

Small businesses can contact banks and other financial institutions for small business bank loans. A business loan must be paid back and strict criteria must be met to qualify. There are a number of private funders that may be able to help.

Related: Government Funding and Grants for Small Businesses

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26 Comments

26 Comments

  1. oupa

    Jun 3, 2013 at 18:18

    where do i get that director

  2. ALEXANDER MOEMISE

    Nov 11, 2013 at 17:50

    I would like to know more about government grants

    • Timothy

      Aug 1, 2014 at 00:27

      me two and we can actually get access to these grants in a reasonable amount of time, as i have read that it generally takes too long to get access. this can actually effect the business as the opportunity may be taken by someone else why you are trying to secure funding

  3. thapelo setungwane

    Jan 15, 2014 at 12:57

    i just register my business so i need funds to start,how can i get help?

    • andile

      Aug 26, 2014 at 16:47

      I have just received accreditation for my training company. I am now struggling to make it known. Is there a way that the government assist in this regard?

      • Sello Kutumela

        Sep 7, 2014 at 07:18

        Advertising is the only way to get your name out there, start with social media as it is the cheaper way to grow your name

      • adam

        Dec 14, 2014 at 10:48

        contact Sean from inorbit he can help you with your business they do business marketing and promotions his your guy sean@inorbit.co.za

  4. Ashwell Daniels

    Jul 28, 2014 at 19:37

    I also started my business provide work for 3 persons. Although we have a lack of transport we do not have a shortage of work, we are same times not available to go because of the transport and we wish we can solve this problem.

    • Joe Ogbechie

      Sep 16, 2015 at 15:18

      What kind of business do you do?

      • Ashwell Daniels

        Mar 3, 2016 at 22:25

        We do electric & Cooling

  5. Maxene

    Oct 12, 2014 at 19:08

    What are the requirements to apply for a goverment grant

  6. adam

    Dec 14, 2014 at 10:53

    Guys I’ve noticed most of you have problem with funding or business exposure this goes back to your business plan if your business plan wasn’t properly compiled then you are surely going to have problems moving forward my suggestion is consult with a business development specialist that give you proper guidelines for your business bringing you a step closer to making your brand work contact sean@inorbit.co.za he handles such problems good luck

  7. blaze

    Jan 14, 2015 at 22:29

    im seeking business finance for start up please help. I have a business plan

  8. Machele John Mosikatsana

    Feb 10, 2015 at 14:15

    There are numerous overseas grant funds that assist in the social upliftment of people in developing countries Africa and South Africa. – See more at: http://www.empowermentprojects.blogspot.com/#sthash.vNw4HzqK.dpuf

  9. Terry

    Feb 16, 2015 at 11:46

    There is such a large amount of development shortage in SA, in various sectors of the skills avenue. In the arts sector alone small business’ that can provide a service cannot access grants from government or corporate. Its basically big business with all the relevant supporting documents that can access grant easily. Its sad that a small service provider needs 5000 supporting documents to access a small grant to provide a service that which is necessary in the community. Its sad that we’re not even given a chance.

  10. Neilyster

    Mar 25, 2015 at 20:51

    i register my business so i need funds to start,how can i get help

  11. Machele John Mosikatsana

    Mar 26, 2015 at 12:42

    The easiest way to find information on free business grants
    is to go to:, http://www.empowermentprojects.blogspot.com/
    where you can search and apply for a
    myriad of government grants available.

  12. Nomathembha Zwelibanzi

    Aug 3, 2015 at 15:31

    i just registered my transport business so i need funds to start,how and where can i get help?

  13. thabiso

    Aug 28, 2015 at 11:34

    I have register my business,so can u help with funding

  14. lorraine

    Oct 29, 2015 at 10:47

    hi, I have registered my company now I need about R10 million to start, so who can you refer me to for grand application and I also some invertors are welcome. I am willing to do the presentation for them.so can you please help?

  15. lorraine

    Oct 29, 2015 at 10:47

    hi, I have registered my company now I need about R10 million to start, so who can you refer me to for grand application and I also some invertors are welcome. I am willing to do the presentation for them.so can you please help?

  16. Mvuseni Mbatha

    Oct 30, 2015 at 15:54

    I have registered my company. And completed necessary research about a business I wanted to start. From 2012 up to now still need funding/capital. How can I get help?

  17. David Melk

    Mar 16, 2016 at 19:07

    I have a piece of land and I want to develop it into a holiday resort. How do I get funding?

  18. John Wilson

    Jul 29, 2016 at 17:15

    Debt Consolidation Loan up to R7,000.000.00,!! Apply Now We will be able to help you no matter what!Take control of your debts – do not let your debts control you!Consolidate your debt once and for all!Get rid of your DEBT load Get rid of the monthly DEBT pressure Get out of your DEBT trap We help those who cannot be helped elsewhere If you have shopped around and been declined then this is the right place to come to If you are under Debt Review you can apply. Are you having problems with garnishee orders?We help people throughout around the world .DOCUMENTS REQUIRED:- ID BOOK- LATEST 3 MONTHS BANK STATEMENT- LATEST TWO MONTHS PAYSLIPS- BLACKLISTED CLIENTS WELCOME.Contact us today via email at: boschloanservice@gmail.com

    We do Business Finance (Business Loan) for up to R7,000.000.00

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    We do Wedding Finances as well..

    We offer the above kinds of loans all at 5% interest which is one of the cheapest around the World.

    Requirements:

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  19. John Wilson

    Jul 29, 2016 at 17:51

    Debt Consolidation Loan up to R7,000.000.00,!! Apply Now We will be able to help you no matter what!Take control of your debts – do not let your debts control you!Consolidate your debt once and for all!Get rid of your DEBT load Get rid of the monthly DEBT pressure Get out of your DEBT trap We help those who cannot be helped elsewhere If you have shopped around and been declined then this is the right place to come to If you are under Debt Review you can apply. Are you having problems with garnishee orders?We help people throughout around the world .DOCUMENTS REQUIRED:- ID BOOK- LATEST 3 MONTHS BANK STATEMENT- LATEST TWO MONTHS PAYSLIPS- BLACKLISTED CLIENTS WELCOME.Contact us today via email at: boschloanservice@gmail.com

    We do Business Finance (Business Loan) for up to R7,000.000.00

    We do home loans even if you are blacklisted

    We do personal loans for up to R280,000.00 even if you are blacklisted

    We do Car finance even if you are blacklisted

    We do 2nd Bonds, Home Improvement and consolidation loans up to R380,000

    We do Wedding Finances as well..

    We offer the above kinds of loans all at 5% interest which is one of the cheapest around the World.

    Requirements:

    3 Month bank statements to date latest salary must reflect.
    Clear copy of ID Book.
    Latest payslip if weekly or commission 4 latest pay slips
    NB: Work and cell numbers
    Contact us Today at: boschloanservice@gmail.com

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Government Funding

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.

Nicole Crampton

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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:

  1. Global Cleantech Innovation Programme for SMEs
  2. Red Bull Amaphiko Academy
  3. Aurik Business Accelerator
  4. Transnet Enterprise Development Hub
  5. Injini
  6. The Techstars Foundation
  7. Anglo’s Zimele
  8. Shanduka Black Umbrellas
  9. SEDA Ekurhuleni Base Metals Incubation Programme
  10. BizQube
  11. Silulo Business Incubator
  12. Sw7
  13. Maxum Business Incubators
  14. Mpumalanga Stainless Initiative
  15. Edge Growth
  16. Smorgasbord
  17. MASDT
  18. Ignitor
  19. Timbali Technology Incubator
  20. Raizcorp
  21. OneBio
  22. SABizHub
  23. 88mph
  24. Enterpriseroom
  25. Chemin
  26. eKasiLabs
  27. New Ventures Studio
  28. Thomson Reuters Labs
  29. Seda Automotive Technology Centre
  30. eGoliBIO
  31. Meltwater Entrepreneurial School of Technology
  32. Seda – Agricultural & Mining Tooling Incubator
  33. Spark* South Africa
  34. Garden Route ICT Incubator
  35. Seda
  36. The Khayelitsha Bandwidth Barn
  37. Furntech
  38. Biofuels Business Incubator
  39. French Tech
  40. BioPark Business Incubator
  41. The Founder Institute
  42. Seda NMB ICT Incubator
  43. Tshimologong Precinct
  44. LaunchLab
  45. Softstart BTI
  46. RLabs
  47. African Rose
  48. The Grindstone Accelerator
  49. Riversands Incubation Hub
  50. mLab Southern Africa
  51. South African Renewable Energy Business Incubator
  52. Enterprise Elevator
  53. The Cape Innovation and Technology Initiative
  54. Endeavor
  55. The Awethu Project
  56. DACT
  57. The Creative Counsel incubator programme
  58. Green Pioneer Accelerator
Prev1 of 59

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Government Funding

Investment Support For Black Business

Business development services to improve core competencies, managerial capabilities and competitiveness.

Monique Verduyn

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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%.

Objectives

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.

Qualifying criteria

3-embedded-image-investment-support-for-black-business

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.

To apply

Applications must include a detailed business plan, financial statements, turnover projections and a tax clearance certificate.

Contact

Go to www.dti.gov.za

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Government Funding

Expansion Funding Options For Your Growing Business

Growth can put an enormous strain on the cash flow of your business. Luckily, there are financing options available to you if you know where to look, enabling you to keep that growth on track.

Darlene Menzies

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One of the first things you notice when your business starts to grow is that your costs shoot up, while your profit doesn’t immediately follow. Growth can put an enormous strain on the cash flow of a company and business owners often make the mistake of financing growth from their cash flow — which is like using your credit card to finance your home renovations.

Doing things this way results in unnecessarily high financing rates and challenging repayment terms, which can also leave you vulnerable to a sudden cash flow crisis without the time required to line up financing.

Financing business expansion requires planning, especially for fast growing companies.

When planning for fund raising, consider applying for sufficient funds to cover the cost of existing debt and the cost of the expansion. When it comes to business expansion funding, the total amount of the finance required will determine which finance options are most suitable.

If your finance requirements are relatively low and your cash flow history is good, consider a term loan or business overdraft to fund your growth while you work on increasing your sales to meet your growth expenses. If your expansion needs include additional equipment or machinery, asset finance is available.

Related: 3 Ways For Social Entrepreneurs To Access Fundraising

However, if your SME is growing rapidly and you want to enter new markets, scale your team or undertake new product development, look at longer term funding solutions. Equity finance is the most common option for this kind of funding requirement and there are also government funds that cater for business expansion.

Government Funding Options

Government lending agencies provide a range of finance options for SMEs to foster growth in high priority sectors, specific geographic areas and to promote economic inclusion for previously disadvantaged people. The finance options include incentivised financing, cost sharing options, equity, loans and grants.

Government has partnered with Finfind, which has an up-to-date database of all the government funding offerings available to SMEs.

If your business profile or funding need matches any of the government funds, Finfind will match you with the offering and provide you with the details of what is required to apply.

Equity Finance

Equity finance refers to the sale of a percentage of ownership in your company in return for business expansion funds. One of the biggest benefits is that these lenders are often prepared to fund businesses that are not currently profitable, but have the potential to generate large returns. As equity funders take more risk than traditional financiers, they expect a higher rate of return on their investment from businesses that can scale into large markets and show highly profitable future returns.

In the SME market, early-stage equity finance is usually provided by venture capital companies (VC), while mid-stage or larger expansion funding requirements for medium size enterprises are provided by private equity funds or bank loans. VCs look for businesses with a strong founder, that have proven product market fit, a team to execute the business plan and a robust business model showing strong future returns. Funding amounts usually vary from R1 million to R20 million.

Related: What Type Of Growth Funding Do You Really Need?

What Funders Want

business-funding

Funding applications require preparation, including a detailed business model that outlines expansion plans and makes a compelling case for investment.

CVs of key staff will be important as well as an organogram that shows the impact of the expansion on your team, detailed projected income and expenses, historical, audited financial statements, bank statements for the business’s bank account/s, tax clearance certificate, and personal statements of assets and liabilities for all owners as well as company and tax registration documentation. Keep an electronic folder with this documentation and update it monthly so that you can access it whenever it is needed.

If the initial funding meetings go well, the potential funder will perform a due diligence where the financials, the business model and its assumptions and projections will be scrutinised. They may interview some customers and your key staff members. Funders are especially interested in the founder and team running the business, as they are responsible for ensuring that the projected growth is realised. They look for experience, deep knowledge of the industry and operational competence.

Resource

Finfind is SA’s leading access to finance solutions for SMEs. This revolutionary online platform links finance seekers with matching lenders, providing easy access to over 200 lenders and over 350 loan options. Finfind is supported by USAID and sponsored by the Department of Small Business Development.

Go to www.finfindeasy.co.za to find the business finance you need. It’s free and easy to use.

Related: The Ups And Downs Of Borrowing From The Bank


embedded-funding-expansion-funding-options-for-your-growing-businessGet Funded

  • Do your homework: Each equity fund has a clear investment strategy. Familiarise yourself before engaging.
  • Educate yourself: Get to know the equity finance terminology and what to expect during the various stages of the deal process.
  • Develop an exit strategy: This is a common question and an important issue for funders.
  • Consider alternative funding: Can your expansion be funded with alternative or cheaper sources of finance that do not require giving up shares? Keep in mind, though, that the right investors bring more than money. They provide expertise and access to networks that can expedite your expansion plans.

Lastly, while you don’t always get the luxury of choice, do your best to partner with people you will enjoy working with, it can be a long marriage.

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