5 Ways to Get Government Funding to Start Your Business, Different Options for Different Hustles

Entrepreneurs are the answer to so many economic issues in Mzansi, especially female ones. Boss babes, listen up, if money is stopping you from starting your hustle, there are other avenues.

A lot of women in South Africa have either never worked a formal job or owned a bank account, making it almost impossible for them to get private funding or loans.

The National Empowerment Fund explains five government funding options that anyone can apply for when embarking on opening their own business. Here they rare;

• Grants

These are usually lump sum once-off payments to help a startup get off its feet. Usually given to previously disadvantaged groups, grants are scares but a good option if you fall into the category. Women of colour have a far greater chance of getting a grant as both race and gender play in their favour. The best part about a grant is that it does not need to be paid back, however, this also makes them scarce and not the easiest to get, says Just Money.

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• Cost-sharing grants

This is to help an entrepreneur get the missing funds they need to start their business. It is not the whole capital, however, it does cover the portion that is holding you back from starting. Like a total grant, this too does not need to be paid back.

• Incentives

These are partial grants that incentives new business owners to make a success of their business. When certain milestones, projects or tasks have been completed, the government pays out a lump sum to the business owner for doing the job. A little riskier and requires you to have the funds upfront, however, it is a good motivation tool and helps if you have been able to get private funding in the means of a loan.

• Tax incentives

Not the most ideal for a new business, however, every cent helps. In the case of tax incentives, your business can deduct agreed costs from the money it owes in tax.

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• Equity funding

Certain government funding agencies will offer equity investments in return for shares, a share of the profits and a lump sum on exit. This allows shared risk, however, it does take some ownership away from the entrepreneur.

You can access all government grants and funding opportunities for small businesses here.

5 best small business funding resources in South Africa 2021

In related news, Briefly News previously reported that it is one thing to have a viable venture but getting the required fund to start with or expand is another ball game entirely. And unfortunately, one of the challenges that some emerging entrepreneurs have is generating funds to fuel their dreams.

Consequently, in this article, we look at some small business funding opportunities that you can explore to get your dream business working. We also explain some tips on how to access loans for your business so that, eventually, you can contribute your quota towards the reduction of unemployment in the country.

South Africa is, without doubt, one of the top ranking economies with a conducive environment for business operation. However, with such an environment, there are enterprising ideas that have been held down because of the lack of funds to start with as there is usually not enough funding. Therefore, as you read on, you will find some ideas that are worth working with in raising capital to launch and expand your company.

Source: Briefly News