If you are looking for money to start a business or money to grow your existing business, several different types of lenders provide finance to entrepreneurs, these include angel investors, banks, debt financiers, niche lenders, personal lenders and venture capital (VC) funding. Looking for business funding can seem like one of the trickiest parts of running a business. While most entrepreneurs may want to just bootstrap it themselves, SME funding is a requirement that so many businesses simply can’t ignore.  

There are many reasons why business funding is so important. As an entrepreneur, it’s important to understand just how much capital you need and what you need it for. If your business is not funded correctly, it could leave a major impact. 

We’ll cover six of the main reasons why a business needs funding below. If you’re starting your business, make sure that each of these areas is covered.  

e Funding 2

• Township Business Funding Opportunities – TREP

• IDC Funding Opportunities

• Non-Repayable Business Grants in South Africa

Starting a New Business in South Africa   

Getting funding for small business development can seem like one of the biggest challenges any new entrepreneurs face. You might have a great business idea and a solid plan, but none of it can be put into action without putting some money behind it.  

There are two options to get funded for business development. You can either secure private funding, or you can secure government funding and grants.  

In terms of private funding, there is a long list of investors that back South African startups. To gain the attention of these investors, you will need a solid business plan and model. Many of these investors are only interested in developing small businesses that are already generating revenue, so starting your business small is usually the first step before gaining funding. 

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Government Funding for SMEs  

One of the key ways that the South African government drives the growth and sustainability of small businesses is by providing development funding. This is because the SME sector is of great importance as it contributes to job creation and is an engine of growth for the economy. The South African government provides several different forms of funding, such as grants, tax incentives, loans and equity finance options. The requirements for specific government instruments will differ depending on the specific grant or incentive.

However, it’s important that all businesses looking to access funding be compliant with all relevant regulatory and statutory requirements such as being registered with the CIPC and registered for tax with SARS.

Need Working Capital? For a Free Quote for Business Funding, visit SME South Africa. 

'Women Entrepreneurship and Funding' Case Studies  

Download SME South Africa’s ‘Female Entrepreneurship & Funding’ Case Studies and learn more about the funding journeys of local women entrepreneurs who are behind some of the country’s most Bankable, Scalable and Future-fit businesses.

What’s inside:

• The strategies they used to secure funding.

• The impact of business funding on their businesses’ growth.

• How they navigated the challenges they faced during the application process.

• Their advice for other female entrepreneurs.

GET ACCESS to in-depth interviews with 4 South African Women Entrepreneurs.