township entrepreneurs Are you funding-ready?

FINANCE

ARE YOU FUNDING-READY? Win a copy of the SMME Kit to Access Funding!

Small, medium and micro enterprises (SMMEs) are the backbone of the country’s economy, providing the majority of job opportunities and contributing significantly to the GDP. For South Africa to resolve its high rate of unemployment and to alleviate poverty, a sustainable and supportive environment needs to be created to facilitate small business survival and growth, and to ensure increased job creation. SMME funding is a critical component of this growth. Access to finance is one of the primary challenges for start-ups and SMMEs in the country. South Africa presents massive opportunities for entrepreneurs, and significant support and funding is now available for start-ups and SMEs ready WIN! to move to the next phase in their businesses. The South African government has made great strides in supporting SMMEs and local entrepreneurs. In the 2018 budget speech, it outlined various initiatives which not only look to provide muchneeded funding, but also opens the public procurement process.

BEFORE YOU SEEK FUNDING, ANSWER THIS QUESTION FIRST What do I need the money for?

You need to be clear about why you want funding in order to determine which funding institutions you should be approaching. Just as there are different reasons for raising finance, there are equally many different types of lenders and different types of funding institutions to match these needs

There are different types of funding which are: for buying equipment and machinery, for working capital, for completing a contract, expanding your business, buying a building for your business, to buy out a partner, to buy a franchise, for exporting or importing and for business emergencies, among others. Research shows that the most common reason why entrepreneurs want to access funding is to start a business. The top three reasons why existing businesses apply for funding is to purchase equipment, to expand their businesses and for working capital. The good news is that there are more than 50 funds in South Africa for start-up finance and more than 70 funds available to fund the purchase of equipment. Many small businesses go through the struggle of finding capital to startup or expand their businesses due to a lack of investors and insufficient funding research and knowledge. The Gata Lenna SMME Kit is a Funding 101 book aimed at helping upcoming and built entrepreneurs to secure funding, organise relevant and standardised business documents, marketing strategies and PR management skills to successfully run their businesses. Research is compiled by author and speaker Motsosi Sammy Mokgoatsane. This book will give you all the tools and knowledge you need on how to access funding in South Africa. Find the answers on: • Ways to get your business funded • How to plan your application • How to prepare your business for funding • Which government funding and grants you qualify for • Government small business loans • Enterprise development funds • A full, comprehensive list of funding institutions in SA

This book will answer all the questions you have been asking on how to get your business funded in South Africa.

One lucky Spotong reader stands a chance to win a copy of The SMME Kit to Access Funding. To enter, email your contact details and name of your business to info@spotongmag.co.za and tell us why you need funding. The lucky winner will be announced in the next edition of Spotong.