1. How Does the Fund Work?
NYDA is an organisation established in 2008 to help address the problems facing South African youth such as skills development and unemployment. The NYDA plays a lead role in ensuring government, private sector and civil society make youth development a priority by identifying and implementing solutions to address youth development challenges.
By empowering the youth and their businesses this entrepreneurship can improve job creation and help to elevate unemployment rates.
The NYDA is moving away from youth enterprise finance in the form of loans and more toward micro-finance grant provisions.
The grant provides both financial and non-financial support to youth entrepreneurs. Grants start from R1 000 to a maximum of R100 000 and support includes mentorship programmes, a voucher programme, market linkages, entrepreneurship development programme, youth co-operative development programme, and other business support services required.
The grant programme consists of two categories, specifically financial and non-financial business support services, which the entrepreneur needs to commit to for two years.
For young entrepreneurs seeking grants, grants are available for (and not limited to) motor mechanics and panel beaters, electricians, plumbers, domestic appliance repairs and services, hair dressers, cleaning companies, beauticians, small-scale recycling businesses, car washes and street vendors to name just a few.
The grant structure is in the following three levels, each focusing on a different type of youth enterprise, such as:
- Individual grants issues to formal and informal businesses that are in the start-up development phase of their business.
- Grants issued to co-operatives, meaning an autonomous association of people united to meet common economic and social goals through a jointly owned and democratically controlled enterprise.
- Another avenue is community development and facilitation projects.
For non-financial business support services, entrepreneurs will benefit with programmes including mentorship, market linkages, voucher programmes, entrepreneurship and youth cooperative development programmes.