R2.7 billion to fund SA youth entrepreneurship
BusinessTech.co.za - Aug 19th 2014, 11:51
The National Youth Development Agency (NYDA), Industrial Development Corporation (IDC), and the Small Enterprise Finance Agency (sefa) have launched a R2.7 billion Youth Fund aimed at fostering entrepreneurship among South Africa’s youth.
Sefa has set aside R1.7 billion for the fund, with IDC contributing the remaining R1 billion.
The NYDA would play the role of screening and recommending young entrepreneurs offered by IDC and Sefa, CEO of NYDA, Khathutshelo Ramukumba, said.
He urged young people to aim higher and apply for funding in the production sector of the economy in order to amass enough wealth to generate large-scale jobs.
“We want more young people to enter the space of manufacturing because we want these young people to be industrialists of tomorrow.”
“If you look at the reason why our economy today is not able to provide the necessary jobs that are required to take the majority of our people out of the poverty situation, it is because we have not created new industries in the main.
“The industrial landscape has not necessarily changed much from the pre-1994 situation,” he said.
Sefa CEO, Thakhani Makhuvha, invited young people to apply for finance. He said, unlike commercial banks, the agency was a developmental institution that does not require collateral to grant applicants finance.
It offers funding of between R500 to R5-million to proposals that can demonstrate a sustainable business model.
Applicants would be afforded a maximum of 12 months to start paying back any loan.
“You don’t have to have collateral, you just have to demonstrate that your business can project sustainability,” Makhuvha said.
Makhuvha also said Sefa recently studied various models of agencies from other countries that offer development support to small businesses, including Brazil’s successful business agency, Sebrae.
Recent media reports revealed that small and medium enterprises provide a little over half of all jobs in Brazil, while the sector also accounts for about 70% of all new jobs in the country.
Makhuvha said Sefa aims to achieve similar results that Sebrae achieved, adding that his agency will push to have at least 56% to 61% jobs created by small businesses.
Recently, Small Business Development Minister, Lindiwe Zulu, said the National Development Plan (NDP) envisaged that 95% of all jobs would come from small and medium enterprises by the year 2030.
She said the R1.7-billion was meant to support entrepreneurs under the age of 35. She said a further R6.5-billion was available over the next five years for those who were 35 and older.From 2014 Copyright, BusinessTech. All right reserved.
The signs are here that South Africa has reached its economic crossroad
03/12/2018 - 11:37
While South Africa attempts to shore up its own economy amid high inflation rates and a stuttering inherited financial system, the continent as a whole continues to grow. The big question, though, is whether South Africa will get left behind in terms of international investment if it doesn’t improve its financial situation, and how to avoid this.
Egypt lifts SA fresh goods ban as listeriosis threat subsides
20/09/2018 - 14:32
The department of agriculture, forestry and fisheries says Egypt's government has lifted its temporary suspension of fresh fruits and vegetable imports from South Africa, which stood as a precaution to prevent the spread of listeriosis there.
Foreword for Sowetan/Sunday World National Stokvel Survey
31/07/2018 - 13:17
Ubuntu is one of those uniquely African concepts that, for many, define what it means to be South African. A beautiful word that exemplifies a philosophy of caring for the welfare of every individual in a community – that special acknowledgement that “I am because we are.” Ubuntu is a spirit that ignites people to work together, for the benefit of all.
Japanese now upbeat about deals with SA
15/05/2018 - 09:42
Trade officials from Japan, who previously had felt sidelined under the Jacob Zuma administration, are in a more buoyant mood, believing that relations with SA have entered a new chapter.
Luxury pet food takes a bigger bite out of the market
18/10/2017 - 13:24
Fazielah Allie, the managing director and majority owner of K-9 Pet Foods, says the business was launched out of necessity two decades ago. She couldn’t find pet food that she considered healthy enough for her dogs, so she began cooking their food herself. Her dogs’ new-found health was a great advertisement, and so her business started.