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5 Reasons why starting a business is so easy

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Here are 5 reasons why you should start a business today.

1. Online tools
In the business world today you do not need to know how to do everything, study a degree in everything or even pay someone the internet is your best friend. Many industry specific experts have made their knowledge available enabling you to utilise these resources. Resources range from starting a business right through to management of your business.
Here are some free online resources you could utilise in starting a business.

2. Government initiative programmes
Government in South Africa is focusing and driving entrepreneurship in the country by making various funding available for people who want to start a business or simply require capital to improve and maintain their business.
View our 2 part series on public sector funding in South Africa.

3. Funding available
The funding by private institutes is available however the only trick comes in when knowing where to go and how to apply for funding. The availability of funding is South Africa is ranked as one of the easiest in the world to aquire, but then why do entrepreneurs name it as the biggest factor holding them back? Its simple be prepared when approaching finance institutes.

Read our posts on how to prepare and business plan that will get you funding.

4. Easy to register
The CIPC (Companies and intellectual properties commission) has simplified processes allowing you to register a company in a matter of hours. Yes it can be a handful if you do not know what is required of you but it is possible. You should not be hesitant to register a company as it is easy and convenient as well as affordable.

How to register a Private company, simply visit Phase One and all the information, costs, the process involved, what is needed to register a company and additional information will be available to you.

5. Discussion forums
Lastly once your business is up and running if ever you need advice or unsure of what’s required of you visit a forum. Discussion forums enable you to get peoples opinions and learn from people who may have similar problems or know a solution.

Visit The Forum SA for stimulating and informative discussions around all aspects of business.

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Finding Funding Part A. Break down of Public Sector Initiatives

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Many believe that there is a lack of funding South Africa- false.

There are multiple avenue to explore when looking for funding to start a business. The public sector has an overwhelming amount of initiatives for funding to start a business. By public sector funding we are of course referring to utilising tax money, foreign investments and foreign donations. Public sector funding has a lengthy process to obtain funds but if you plan correctly you will be able to start a business .Here are some public sector funding initiatives available to you to start a business the second installment focuses on the Industrial Development Corporation whereas the first installment focused on initiatives by the Department of Trade and Industry.

Industrial Development Corporation, IDC
The IDC Established in 1940. The IDC is a national development finance institution established to advance economic growth and industrial development.

This is 7 different initiatives by the IDC for Start-ups and small businesses.

1. Gro-E Scheme
Eco friendly industries (Sectors include: agriculture, mining value chain, advanced manufacturing, green industries, tourism and high-level services, media and motion pictures and knowledge economy)

2. Risk Capital Facility Programme
Applicants must be South African and projects located in South Africa or Africa. Requirements are demonstrating financial profitability, highlight job creation, demonstrate female entrepreneurship, involvement of historically disadvantaged persons in management, comply with South African environmental legislation and have an HIV/Aids prevention and awareness programme.

3. Support Program for Industrial Innovation
The Support Programme for Industries consists of three initiatives that all have unique requirements.

Product Process Development (PPD) Scheme provides financial assistance for small businesses who do not have financial assets that are more than R5 million, turnover exceeding R13 million and less than 50 employees.

Matching Scheme offers financial assistance in the form of a taxable non-repayable grant between 50%- 75% of qualifying costs incurred during pre-competitive development. The amount awarded is dependent on BEE shareholders, women and persons with disabilities.

Partnership Scheme repayment levy is calculated as the percentage of the projected value of sales, paid bi-annually, over a specific number of years. The levy percentage and repayment period is set at the time of the award.

4. Transformation and Entrepreneurship Scheme
There are five unique funds under the Transformation and Entrepreneurial Scheme

Women Entrepreneurial Fund criteria for this fund is that at least 50% of shareholding must be by women, can be awarded for starting a business or expansion.

People with Disabilities Fund criteria for this fund is that persons with disability must demonstrate operational and management involvement and have at least 50% of shareholding.

Equity Contribution Fund criteria for this fund are 100% black owned available for new black entrants where shareholders hold a direct or indirect total net asset base of less than R1.5 million.

Development Fund for Workers criteria for this fund is at least 85% owned black worker groupings and can be awarded for starting a business or expanding.

Community Fund finance is provided to marginalised communities wishing to acquire shares in a company funded by IDC.

5. Green Energy Efficiency Funds
The Green Energy Efficiency Fund supports introducing of energy efficiency and self use renewable energy technologies Energy and related cost savings will contribute to improved production capacity, operational effectiveness, competitiveness and job creation.

6. Women Entrepreneurial Fund (WEF)
To qualify for the WEF there should be a minimum 50% female shareholders and they must display operational and management involvement. WEF can be awarded for starting a business or expansion.

7. Distressed Fund
Helps a business to become competitive by ensuring liquidity by providing funds not accessible by banks. The objective of the Distressed Fund is the intervention is to retain jobs and maintain productive capacity.

The requirements for these funds vary.
Contact The IDC or apply online

Follow our three part series for funding available for your business is South Africa. Part A- public sector finance, part B- Private Sector funding and Part C- Corporate Funding.

Starting business visit Phase One. We will guide you.

Finding Funding Part A. Public Sector Initiatives Break Down

iStock_000003231649XSmall[1]Many believe that there is a lack of funding South Africa- false.

There are multiple avenue to explore when looking for funding to start a business. The public sector has an overwhelming amount of initiatives for funding to start a business. By public sector funding we are of course referring to utilising tax money, foreign investments and foreign donations. Public sector funding has a lengthy process to obtain funds but if you plan correctly you will be able to start a business. Here are some public sector funding initiatives available to you to start a business the first installment will guide you through initiatives by the Department of Trade and Industry.

The Department of Trade and Industry (DTI)
The DTI is involved in industrial development, and trade, exports and investments by coordinating and advising legislation to broaden participation in the South African economy. Entrepreneurship is seen as a crucial element to stimulating economic growth and development.

Here are 4 initiatives offered by the DTI which will help you start a business

1. Black Business Supplier Development Programme (BBSDP)
The BBSDP is a grant offered to black-owned small enterprises improving competitiveness and sustainability allowing black-owned small enterprises to become a part of the mainstream economy and create employment.
2. Incubation Support Programme (ISP)
This initiative encourages partnership between large enterprises in South Africa and Small businesses through skills transfer, development, supplier development and market opportunities.
3. Seda Technology Programme (STP)
STP is a part of SEDA (Small Enterprise Development Agency) focusing on technology business incubation, quality & standards and technology transferring services & support to small businesses.
4. The Gauteng Enterprise Propeller (GEP)
The GEP provides non-financial support, financial support and co-ordinates stakeholders to benefit of Small businesses in Gauteng. Supporting, establishing, growing and sustaining small businesses in Gauteng.

To get more information on specific requirements for these funding opportunities visit The DTI

Our second installment will cover another 7 initiatives for public sector finance available to small businesses in South Africa. 

Follow our three part series for funding available for your business is South Africa. Part A- public sector finance, part B- Private Sector funding and Part C- Corporate Funding.

Starting business visit Phase One. We will guide you.