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Non-Repayable Business Grants for SMEs
Non-repayable business grants are a type of development funding offered by the South African government to support the growth of small and micro businesses. The advantage of these types of government grants is that you don’t have to return the money or pay interest on it.
There are two types of business grants – those that cover 100% of the financial need, and cost-sharing grants that only cover a portion of the required amount.
For business owners, it’s important to note that while you are not required to pay back non-repayable grants, it’s not free money. This is because there are typically stipulations about how the money can be used.
In this guide, we’ll list all the government’s non-repayable small business grants available. 👇
Create a Business Proposal For Funding
Creating a business proposal for funding is something that all kinds of organisations need to do at some stage. Funding is necessary for small business development and putting certain projects into action. Without funding, organisations can’t achieve their goals and mission.
Putting together a funding proposal needs to be a carefully planned process.
These proposals need to be laid out in the right format, they need to address the right topics and provide the specific information that funders are looking for.
A business proposal for funding includes everything a potential investor or donor will need to know about the project. This includes an overview of what the business or project is about, why it is important, what the funding will be used for, and possibly how investors could get a return.
New This Week (31 October 2022)
Government Funding for SMEs
The South African government offers several funding instruments for small businesses.
Ranging from grants to incentives, each offers some form of financial support for entrepreneurs, including:
– Full or cost-sharing grants, are usually not repayable. Grants that are less than 100% require you to fund the balance of finance required for the project at hand.
– Incentives, these are grants in that you do not have to repay the money. However, unlike grants, where the money is provided for the service or asset, incentives are paid after the event has occurred. Tax Incentives mean that the business may deduct a certain amount from the money it owes in tax.
– The government also offers equity funding which means that the government funding agency buys a certain part of your business in return for percentage shareholding. The equity provides you with the finance to grow the business and the investor receives a share of the profits and a lump sum when they exit.
Need Working Capital? For a Free Quote for Business Funding, visit SME South Africa.
To remain competitive in the short and long term, small businesses should be using the very best technology tools available at their disposal.
Download the SME South Africa Technology White Paper to learn:
The reasons South African business owners are not making use of technology at the levels they should.
The tech benefits that small business owners are missing out on such as access to new markets, reduction in business costs, and improved efficiency and competitiveness.
How technology brands should be talking to small business owners and the role of entrepreneurship ecosystem stakeholders in increasing technology use.