UNDERSTANDING YOUR UNIQUE SITUATION
There are several key factors to understand about your unique situation before approaching funders.
All of these can have an impact on who you approach, how you present yourself and what sort of finance you apply for:
- Life-stage and other important funding criteria
- Your reason for seeking funding
- How to assert your credibility through legal structures, industry certification or labels
In addition, your Enterprise’s B-BBEE profile can have an impact on the funding options available.
A NOTE ON YOUR ENTERPRISE B-BBEE PROFILE
Eligibility opens doors
South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) is a policy framework to advance economic transformation through incentivising business behaviour that increases the meaningful economic participation of previously disadvantaged groups. There are five criteria that contribute to an organisation’s B-BBEE rating but the following THREE qualify your enterprise for special funding sources:
- Enterprise and Supplier Development (ESD) - companies that support preferential procurement, supply chain
development and the growth of small black-owned businesses.
- Socio-Economic Development (SED) - companies that help to bring ‘sustainable economic inclusion’ to
previously disadvantaged groups (through grants or in-kind donations).
- Skills Development (SD) - companies that help provide access to training with an emphasis on youth.
Enterprise and Supplier Development funds and initiatives are significant providers of funding to qualifying SMMEs in South Africa.