Top 5 Business Funding Opportunities for SA Youth
A large proportion of requests or inquiries we receive on Youth Village Business Section are mostly related to business funding. Here is a list of institutions in SA offering business funding solutions or grants which have South African youth as a primary target market.
YOUTH TECHNOLOGY INNOVATION FUND
The Technology Innovation Agency (TIA or the Agency), an initiative of the Department of Science and Technology, has a mandate to
enable and support technological innovation across all sectors of the economy in order to achieve socio-economic benefits for South
Africa and enhance its global competitiveness.
TIA has established the Youth Technology Innovation Fund (YTIF) aimed at promoting and stimulating a culture of innovation and
entrepreneurship amongst the youth by providing access to financial and business support resources. This funding instrument is aimed at the youth between the ages of 18 to 30 not already funded through the YTIF or other TIA funding instruments.
NYDA Grant Programme
A total of 500 South African youth owned enterprises will benefit from the grant programme starting from R1000 to R100 000, while thousands more youth will access the non-financial business support services. Young people interested in accessing the grant programme will have to commit to participate in the NYDA mentorship and voucher programme for a minimum of 2 years.
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 installments 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.
IDC Young Entrepreneurs Campaign
The IDC plays an important role in growing the economy, creating industries and facilitating job creation. The IDC has set aside R1- billion to fund youth-owned businesses.
The IDC offers both financial and non-financial support to youth enterprises. The corporation is calling on all young entrepreneurs to stand up and lead industrial development.
If you are a young entrepreneur and have a sound business plan or idea, you are half-way there. Because the IDC is particularly focusing on the youth, we have developed the following criteria:
- Over 50% ownership by persons under 35 years of age;
- Businesses operating or expanding in South Africa;
- Businesses that demonstrate that they have economic sustainability and are able to derive profits from their operations; and
- Broad-Based Black Economic Empowerment certification from an accredited verification agency, where applicable.
The Tholoana Enterprise Fund
The Tholoana Enterprise Fund aims to provide small-scale grassroots support for small enterprises, co-ops, micro-businesses and other ventures which invest in entrepreneurial development and provide income generation and employment. The focus of the TEF is on small, rural, women-owned and/or youth-owned enterprises, as well as on enterprises owned by and/or employing persons with disabilities. All businesses applying for funding should be black-owned* and managed, and operational. The Tholoana Enterprise Fund offers three levels of funding. This form is for “Mbeu” level funding.
