Business Funding Opportunities for SA Youth- The Youth Entrepreneurship Fund
This fund is designed to promote youth led businesses by providing grant funding and business development programmes. Youth is encouraged to pay a commitment fee in the package of their choice namely silver, gold or platinum. This financial commitment towards each package is payable over 12 month’s period in instalments of R166.00, R333.00 and R500.00 for the three respective packages. Although you may choose to pay upfront for the package chosen, R2000.00 (Silver), R4000.00 (Gold) or R6000.00 (Platinum), you can only access the funding after a year. Once your financial commitment is confirmed, your business proposal will then be expected from the investor for approval. The approval process includes business validation – this means your proposal will be interrogated in relation to typical business fundamentals (i.e. commercial viability). We will assist you to ensure that your business proposal is funding ready.
Previous credit and financial record is no exclusion factor but we will endeavour through the mentorship process to help entrepreneurs maintain a good credit record going forward. So, if you commit in March 2014, you will be eligible for funding for a business in April 2015 having gone through a rigorous preparedness process. The funding can only be used for a business. In the event that you are not of the eligible age, you can still participate and get the benefits of the fund but your funding will be on condition that your business employs at least 2 young South Africans and takes up a insurance for the business.
HOW THE FUND WORKS?
The fund is open to all South Africa youth, irrespective of race or gender. Starting a business is not an event but a process and there are NO shortcuts. If such existed, we will all be millionaires. It is on this basis that we place premium on training, mentor-ship and business coaching. The following steps outline the process leading to grant disbursement.
Step One: A youth chooses a package and complete necessary documentations online. Upon completing the forms a notification will be issued. Depending on your package of choice, equal installments are expected over 12 months period.
Step Two: Once this has been done, business validation processes commences and this include assessment of your business, providing guidance, refinement of business plans. We place premium in business validation, which means your business must be innovative and commercially viable. Existing businesses should display the potential of being scalable.
Step Three: Once, a business proposal has been screened for market readiness, grant disbursement will follow – grant is disbursed towards a business and nothing else.
Step Four: In order to ensure the success of your business, mentors will be assigned to guide your businesses. To this end, a number of platforms will be explored to ensure that your business receives much needed support (physically or virtually)
WHO CAN APPLY?
The fund is open to all South Africans who are in and outside the schooling system and who are between the ages of 18-35. However due the legacy of the past, Black youth are encouraged to actively partake in a quest to redress the historical imbalances. We also encourage parents, guardians and corporate to invest on youth behalf to create wealth.
WHAT ARE REQUIRED CONTRIBUTIONS AND BENEFITS?
There are two types of support earmarked for youth led businesses, namely financial and non financial support. In terms of the financial support, the fund has three packages and each of the packages has a corresponding fee structure and these are outlined below;
- Silver – R166 over 12 Months = R2000
- Gold – R333 over 12 months = R4000
- Platinum – R500 over 12 months = R6000
Non financial support:
The non financial support is equally important hence we pay particular attention to this realm of business. The non financial intervention is delivered through reputable academic institution and a network of mentors whose core competencies are in business development.
- Regional business workshops
- Business validation (assessment and guidance in business plans and development)
- Mentoring
- Collateral for business which need more than what they qualify for
As part of support, we also stand surety for businesses which may require more than what they have qualified for.
All these are included in all the three packages cited above.
NB. The period of 12 months is calculated on the first month of your contribution.
