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R33 Million Available In SME Grant Funding

The Craft + Design Institute (CDI) has launched three funds to support the growth, job creation and innovation of SME’s.

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The Craft + Design Institute (CDI) has raised R33 million to establish three funds to support SME growth – a Growth Fund, a Design Innovation Seed Fund and a Loan Book. These three funds will be managed by the investment arm, CDI Capital.

“In most countries, SMEs play a vital role as drivers of economic growth, innovation and job creation, but in South Africa this value is yet to be properly realised. To achieve this, the challenges experienced by SMEs need to be addressed, namely access to markets, finance and credit, infrastructure, resources for R&D, and access to adequately skilled and work ready labour,” explains Erica Elk, Executive Director of the CDI.

The funding’s aim is to create 60 growth-orientated SME’s and 20 innovation technological solutions, which in turn will create 600 permanent jobs over the course of three years.

Related: 3 Things You Must Have In Place To Get That Start-up Bank Finance

“We have put a significant amount of work into developing these offerings, not only ensuring good governance and appropriate monitoring and evaluation measures, but realising real and sustainable impact with the businesses we support. We are excited to have raised R33 million to launch this new funding for SMEs, and we thank our funders and supporters – we look forward to making meaningful investments,” says Elk.

The Growth Fund

The Growth Fund is targeted at business with a turnover of assets of more than R1 million, with the ability to create permanent jobs. Applications for this fund open on the 27th November and close on the 31st of December 2017.

The Growth Fund invites SME’s that are experiencing growth or equipped for expansion and able to create sustainable quality jobs to apply for grant funding.

Criteria for the Growth Fund

  • Controlling interest in the business (51%) must be a South African citizen with valid South African Identity Document or legal entities controlled by South African citizens with valid South African Identity Documents or permanent residents who hold a valid RSA ID document.
  • All business operations must be conducted within the borders of South Africa.
  • Must be an existing business, preference will be given to businesses that have been trading for two years or more. The business should operate in the craft, design and light manufacturing sectors, but other industries will also be considered.
  • The business will need a turnover or assets of more than R1 million and a willingness to create permanent employment. It must demonstrate year-on-year growth and/or the potential for sufficient growth, while being tax compliant.
  • The applicants business will need to create one permanent employee job per grant investment of R21 000 and prepared to contribute an additional 20% of the grant amount in cash to be used in the business.

For more information and further criteria visit here.

Related: If You’re Trying To Raise Money, Doing Any Of These 9 Things May Scare Off Investors

The Design Innovation Seed Fund

The Design Innovation Seed Fund is open to investors who have protectable innovative technological solutions that can impact specific sectors and create permanent employment. Applications for this fund open on the 27th of November and close on the 31st of December 2017.

This fund is available to individuals and SME’s with pre-revenue innovative technology and tech-enabled ideas and products within specific sectors to apply.

Criteria for the Design Innovation Seed Fund

  • Western Cape based early-stage SME’s/entrepreneurs/researchers.
  • Students at Western Cape tertiary institutions where the institution doesn’t have an Intellectual Property claim to the product/service. Please consult institution’s Intellectual Property policy.
  • Pre-revenue businesses in incubation or entering incubation or existing SMEs with new products/innovation that is still pre-revenue.

Sector focus 2018/2019:

  • Agriprocessing
  • Biotechnology
  • Health
  • Manufacturing
  • Water Conservation
  • Alternative Building Materials
  • Wild Card* (*projects outside these sectors can be considered).

Related: The Truth About Venture Capital Funding

How to Apply for Funding

Click here for more on the criteria and further information visit here.

Loan Book

In addition to the grant funds, CDI Capital is also launching a R3.5 million working capital and term loan facility as reduced rates for the entire three year project. This will provide access to cash flow during the growth stages of SME’s that qualify for these funds and others.

For more information visit CDI Capital.

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Empowering Township Entrepreneurs

Big drive to bring ideas to life in the townships this Global Entrepreneurship Week.

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As part of Global Entrepreneurship Week, Experian teamed up with Rhiza Babuyile and Township Fleva – two organisations responsible for supporting township communities – to assist entrepreneurs in transforming their innovative ideas into thriving businesses.

The annual event ‘Tshogo’, which took place in Tembisa yesterday (Thursday, 15 November), is the culmination of roadshows in Gauteng’s populated townships, such as Diepsloot and Orange Farm. These involved up-and-coming start-ups pitching their business ideas to a panel of experienced judges, including Simon Rudman, Social Innovation Lead at Experian SA.

Twenty winners received funding to the combined value of R280 000 to kickstart their business venture, while our others received marketing packages to equip them – and their ventures – further.

“Throughout the competition we were greatly inspired by each and every one of the entrants. There is definitely no scarcity of bright ideas,” says Rudman. “By keeping our entrepreneurs top of mind and providing continuing support, we can grow the township economy for the greater good of the country.”

Experian is pleased to support Rhiza Babuyile, by providing the JoZi Business Hub participants with career counselling as well as credit and financial education aimed at empowering and equipping entrepreneurs with the financial know-how to manage and grow their business and to make smart credit decisions.

“We believe data has the power to transform lives and societies for the better and our corporate social responsibility programmes pioneer how we use our business skills, products and services to promote financial education, financial inclusion and support small business entrepreneurs.

Related: FNB Kicks-off Global Entrepreneurship Week By Engaging Township Entrepreneurs

“These engagements also provide a great opportunity for us to include the entrepreneurs in our solution development process. Their feedback is invaluable in helping to shape products which will hopefully contribute to their success”, adds Rudman.

Global Entrepreneurship Week is a celebration of innovators and job creators who launch start-ups that bring ideas to live and drive economic growth. The JoZI Business Hub’s Tshogo roadshow could not be a better example of this in action.

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Call For Applications: Young Entrepreneurs Global Exposure Trips

Closing Date: 30 November 2018

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Investec CSI’s Young Entrepreneurs Programme provides South African entrepreneurs from various sectors with global exposure.

Every year Investec, in partnership with En-novate, sends a group of young entrepreneurs from various sectors to specifically selected countries in order to gain global exposure. Each itinerary provides them with opportunities to network and engage with venture capitalists, funders and captains of their specific industry. The aim is for them to gain learning and exposure to innovation, technology and process advancements. The programme also offers networking with subject and sector experts.

Applications for the Global Exposure trips are now open to ALL entrepreneurs – regardless of sector – who meet the criteria. Closing date is Friday 30 November 2018.

Applications link:

https://www.investec.com/en_za/welcome-to-investec/corporate-responsibility/our-community/Entrepreneurship.html

The programme itinerary and each trip is customised according to the profiles of the candidates, stage of business and specific sector.

By way of example, Investec recently sent 14 entrepreneurs from South Africa to Berlin to meet people doing Out of the Ordinary things in textiles: https://www.investec.com/en_za/focus/young-entrepreneurs/sa-entrepreneurs-return-inspired.html

Related: En-novate Goes Toe-To-Toe With The Best In The World

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Business Lessons From Women For Women: If You Have To Fail, Fail Forwards

Lessons from three young black South African women on how they have turned an idea into a profitable business.

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Just 70 years ago, black women in SA were largely regarded as legal minors with no power to open bank accounts, lease property or conduct legal transactions without their husbands’ permission. Some remnants of this legacy remain, but, increasingly, traditional roles are being subverted and women are building businesses.  However, women entrepreneurs still remain part of a small minority of thriving business success stories.

The Mastercard Index of Women Entrepreneurs found women in early-stage entrepreneurship decreased by 15.7% in 2018 and only 18.8% of all business owners in SA are women. Suffice to say there’s more to be done, and a lot of it starts with support. When Lebogang Ndlovu, owner of Amare Beauty Hub, announced her intention to start a small business shortly after matric, her parents weren’t happy. She forged ahead despite the lack of support and tenaciously founded three different ventures, which all, unfortunately, failed. She then decided to attend consumer financial training offered by Santam through Mzansi Financial Education. From this training, she learned to ‘fail forwards’ and started her current company – a highly successful Soweto-based spa. She credits the support and mentorship she received as imperative to this success.

That says Tersia Mdunge, Santam’s Corporate Social Investment Manager, is what Santam’s Consumer Financial Education (CFE) is all about, “To grow entrepreneurship, South Africa needs to provide enabling conditions, opportunity and support. As the cornerstone of our economy, it’s pivotal we do so. At Santam, our Consumer Financial Education and Mentorship programme helps young, black entrepreneurs from previously disadvantaged backgrounds to turn their ideas into tangible businesses. We’ve assisted 1 595 individuals so far, and we’re absolutely committed to continuing to do so.”

Although Africa has the highest growth rate of female-run businesses globally, according to the World Bank, South Africa lags behind countries like Ghana.

Here, three women entrepreneurs from Johannesburg share their entrepreneurial journeys and the difference mentorship made:

1. Lebogang Ndlovu, owner: Amare Beauty Hub

lebogang-ndlovu

Although young, Ndlovu knew she wanted to be an entrepreneur after matric. It was tough convincing her parents to get on-board. “I come from a typical black family background where the norm is to be employed and not create employment.”

After getting her parents on-side, she used the allowance they provided to start a home executive concierge service. That, unfortunately, failed, and she tried two other ventures, which also didn’t last. It was then that she decided to attend Santam’s training. She did thorough research before jumping into yet another business. She realised that, “It does not matter how many times you fail, learn from your mistakes and move along.”

Ndlovu finally found her passion in beauty. She currently runs Amare Beauty Hub in Soweto; a fully-fledged beauty and health spa that focuses on “beauty on a budget”. With her business partner, she’s already considering expanding the business into micro-franchises to empower other women who are interesting in the beauty industry.  

Related: Watch List: 50 Top SA Business Women To Watch

2. Nthabeleng Nhlapho, owner: Afro Kids Salon

nthabeleng-nhlapho

Before 2016, running her own business was just a dream for Nhlapho, even though she always knew that she was an entrepreneur at heart, because of her family background.

“Getting into business has always been an idea I have toyed with, and after many years of procrastination, I finally decided to take that leap of faith. My dad’s side of the family is quite entrepreneurial as a number of my brothers have started and are sustaining their own businesses. So, in a sense, I think I was born to be an entrepreneur.”

After doing research, Nhlapho saw a gap in the market for an ethnic hair salon for kids. Having a daughter with ethnic hair herself, Nhlapho says, “It became apparent that many mothers like me are uncomfortable with having to take their young daughters to adult hair salons where the environment is not conducive for little budding minds, and stylists do not have the patience with children.”

Nhlapho’s Afro Kids salon is based in Sandton. She opened her door in September 2016 soon after she attended Santam’s training sessions. She gives credit to the mentorship she received and to support from friends and family for her success.

3. Phumzile Nala, owner: Pumzi’s Pretty Petals

phumzile-nala

Phumzile Nala’s grandmother inspired her love for flowers. “My grandmother loved flowers and used to do flower arrangements at friends’ and family events, which is where I was introduced to flower arrangements.” 

Nala attended the Santam CFE workshops in Vilakazi Street in April this year. Her mentor, Martine Solomon, says, “Phumzile started the training with the hope that she would go into public speaking and training and development, however, that changed when she realised her passion for flowers. Phumzile was very helpful during her time in the programme, assisted with the roll-out of the CFE programme as well as CFE training and development.”

Now, Nala is a proud owner of a beautiful flower shop in Roodepoort called Pumzi’s Pretty Petals. In just six months, the business is showing steady growth. Nala’s other mentor, businessman Donnie Koetzee, played an instrumental role in this growth, helping Nala buy stock and get through start-up hurdles. Nala says, “At the beginning, I went through a lot of teething problems and had to take credit in order to keep the shop open.” 

Even though Nala cannot compete with big retailers in terms of pricing, she gives her clients a far more personalised and meaningful experience. “We take time to teach our clients about our different offerings, and that is something they will not find in bigger stores.”

Nala found her unique value proposition, which is something that all entrepreneurs need to identify in order to compete. She also gives credit to social media as she makes use of it to advertise her flowers. Her dream is to open four stores in the four major cities of South Africa.

This programme is a direct response from the Department of Treasury for financial services companies like Santam to educate their clients and prospective clients on financial knowledge.

“We went above and beyond what is required of us and turned this into a successful initiative that empowers many to fulfil their dreams. Our programme has been dedicated to empowering our people to becoming financial savvy consumers and entrepreneurs. We have also made it our mandate to focus on risk management and understanding business insurance. Many small businesses do not consider the risks that come with running a business and how they would bounce back if they would be faced by a law-suite for instance;” concluded Mdunge.

For those who would like attend Santam’s Consumer Financial Education, please look out for an invitation on Santam’s website, the requirements are that as a consumer you need earn less than R250 000 and as a business owner, your business need to have a threshold less than R10 million.

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