Seda gives informal traders get a hand to grow businesses

MALALANE – A group of informal traders spontaneously burst out into song and dance when the Small Enterprise Development Agency (Seda) handed over equipment to improve their businesses on Friday morning.

Items such as Jojo tanks, stoves, fridges, printers and sewing machines were distributed to a total of 116 beneficiaries over the course of several weeks.

The most recent group enthusiastically thanked the organisation and some even took the opportunity to do some marketing for their fruit stalls near Matsulu.

Among the beneficiaries were also a few people who had food and snack stalls at taxi ranks and on sidewalks in town.

The aim of the joint programme between the local Seda office and the Nkomazi Local Municipality was to develop informal and microenterprises in the area and close the gap between the formal and informal business sector.

Beneficiaries were not just given equipment for free. Entrepreneurs have to register for the programme, receive basic business management training and were then given a grant for basic equipment and tools.

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To qualify for the Informal and Micro Enterprise Development Programme, entrepreneurs must have been trading for at least three months, be a South African citizen and have a black-owned informal and microenterprise.

Informal businesses refer to those that are not registered, taxed and operate outside of government regulation. Microenterprises are registered businesses that have a turnover of less than R250 000 and employ fewer than five people. Applicants have to have certified IDs for both the owner and employees and banking of stokvel documents.

The last requirement is that they must have undergone mandatory business development training at a Seda branch. This ensures that they know how to effectively use the equipment they are given.

If the applicants have already benefited from other government or state-owned entities projects, they are not eligible.

Once the documents have been submitted, applicants undergo a rigorous adjudication process to verify everything.

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The programme does not include immovable property such as land and building or cover operational costs such as wages, municipal rates, and electricity and water bills.

Although the programme has closed for the previous financial year, Seda will inform the community when it reopens and qualifying enterprises are urged to participate to help grow the local economy.

Visit the Seda Nkomazi office in Lourenco Street near the circle in Malalane or its website, www.seda.org.za, for more information on its programmes.