5. Government Loans
Government funding for business is certainly an avenue worth exploring says Matsi Modise, MD of SiMODiSA. “Though there tends to be a social component involved when it comes to governmental funding. Social entrepreneurs, or founders who can prove a significant social impact, are the ones who tend to have the most success here,” explains Modise.
She goes on to say that some entrepreneurs find the application process daunting and are put off by all the paperwork involved. “But it is worth the effort if you manage to navigate the bureaucracy successfully. My advice would be to visit the website. There you’ll find detailed information on what is expected in terms of a business plan, etc.”
Where can you find government funding?
A large portion of government funding for business can be found in the Department of Trade and Industry (DTI) and its associated organisations such as Small Enterprise Development Agency (SEDA), National Empowerment Fund (NEF) and Industrial Development Corporation (IDC). The business loans have lower interest rates compared to financial institutions and tend to have longer or more flexible repayment terms.