Funding challenges discussed at business meeting
According to Mbuyiselo Ngobese of the EDTEA , the Small Business Development Unit pays money to Ithala Development Finance Corporation to lend small businesses money to grow.
Business funding or financing was discussed as a key challenge for start-up and expanding businesses at a meeting with the KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA), banking institutions and emerging businesses.
EDTEA officials and bank representatives presented financing and funding opportunities to small business owners at a gathering at the Port Shepstone Civic Centre last Tuesday. These included the Small Business Development Unit of the EDTEA, Ithala Development Finance Corporation, FNB and Old Mutual.
The EDTEA’s Mbali Phakathi said the aim was to share information with emerging businesses so that they can take advantage of opportunities and grow their businesses.
“We brought in various institutions because they have different offerings and requirements. If you do not qualify for funding or finance from one entity, another might accept your request,” said Phakathi.
Lindani Nene from the Small Business Development Unit said that they prioritise initiatives to support small businesses with funding or finance, hence the reason for the meeting. “We want small businesses and co-operatives to know where to find funding and how to apply for it.”
National Youth Development Agency’s Raoul Weldon said their programmes focuses on skills development, training and education on business development and management. “We train business owners before funding them with grants. We even fund business ideas after training.”
According to Mbuyiselo Ngobese of the EDTEA , the Small Business Development Unit pays money to Ithala Development Finance Corporation to lend small businesses money to grow.
“The interest rate is set at 4%, but we also have grants. Our unit offers grants to businesses owned by the disabled, youth and women. We had Operation Vula Vala, but grants took too long to reach applicants due to so many applications,” said Ngobese.
Business owners complained about the long wait for the Vula Vala funding and that they had applied at the last elections, but they had received no help.
According to EDTEA officials about 200 business owners from the Ugu region had applied, but they could not be traced via the supplied phone numbers. However, about 1600 business owners from KZN had received grants.
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