Would You Ever Apply for Government Funding?

Let's talk funding. We know it remains a huge obstacle for many entrepreneurs, even with big contracts or tenders, some may find that they still don’t have sufficient capital or resources to complete the project

This week we focus on 

Government Funding and Initiatives for entrepreneurs

Let's start with the State of the Nation (SONA) speech which we watched with great interest - we had to hear how the government is planning to take care of SMEs and our entrepreneurs.

We were happy to hear President Cyril Ramaphosa mention in his SONA speech funding initiatives like the 

1000 Youth-owned Enterprises in 100 Days initiative

which will be implemented by the government.

More about that initiative here

Other initiatives from the President’s SONA speech that we’ll be keeping a close eye on (for our SME South Africa community) include:

• The launch of the SheTradesZA platform to assist women-owned businesses to participate in global value chains and markets;

• The Industrial Development Corporation (IDC) is targeting R10 billion of own and partner funding for women-empowered businesses over the next five years;

• The government is planning to designate 1,000 locally produced products that must be procured from SMMEs, to create a larger market for small businesses;

• The government plans to spend R64 billion over the next years on student accommodation and will leverage at least another R64 billion in private investment; and

• A Tourism Equity Fund will launch this year to stimulate transformation in tourism.

Besides these new initiatives, there are a variety of funding instruments available. In this week's newsletter, we provide a guide to funding instruments, including grants and incentives. 

LESSON OF THE WEEK

Preparation is key"The meeting of preparation with opportunity generates the offspring we call luck." ― Tony RobbinsSee also: What Serious Entrepreneurs Already Know and Do

NEW THIS WEEK: Funding for Businesses with Potential to Create Jobs

DON’T MISS THIS: Government Funding & Incentives

- From funding to grants, learn the  5 Different Types of Government Funding You Can Apply for Your Guide to Government Funds Available for SMEs

- Learn about R100 Million Isivande Women’s Fund, funding for rural women in agriculture

- Where to Access Funding for Women-owned Businesses in South Africa

- PLUS: You’ve Got SME Funding – Here’s How to Spend it the Right Way

- The following content is paid for by The People's Fund -

THIS MONTH:

 Learn Everything About Purchase Order Funding:

In March, Luyanda Jafta from The People's Fund will be answering all your FAQs about Purchase Order Funding, from how to apply to who qualifies.

Q: What are the benefits for an entrepreneur of being able to access working capital in such a way as compared to other methods?

a. With The People’s Fund we do it under procurement services. What this means is that we buy the goods on your behalf and then take a profit share from your deal. So we are not offering credit, but we are partnering with you. This means that we don’t need to do a general affordability assessment which includes credit checks, financials and statements of assets and liabilities.

We only need to assess if your current order has a large enough margin for us to finance it. As entrepreneurs ourselves, we get that the best type of business cost is one where it is directly tied to our profits because business is uncertain. Read more here.