Young entrepreneurs in South Africa play a vital role in boosting the economy and helping to lower the unemployment rate. However, in order to start a business, these young individuals (or groups) must provide capital that covers the initial costs involved in the setup process, such as copyrighting, employment, tools, premises hire, materials, etc. This causes a problem for individuals looking to start small businesses in order to sustain theirs and their families’ livelihood.
Capital funding and youth business development programs have been established by various organizations, including the South African government, in an attempt to increase small business growth and sustainability. These programs help fund small business ventures, both short and long term, so that the owners have a better chance of succeeding, without having to first build up enough money for capital.
The governments policy on Small Business Development, aimed at developing businesses through skills development, funding and institutional support, allows businesses of all sizes to gain funding and the necessary skill development to become self-sustained. Informal businesses that make up the ‘Survivalist Enterprise’ category, namely those that are generated through necessity from unemployment, incorporate low skill levels and have almost no opportunity for growth can be helped fundamentally by increasing skill levels and providing adequate funding for formal structuring.
As part of the Small Business Development initiative, many NGO’s and private sector donors have taken on the task of providing training and funding to businesses in various sectors of the economy. Apart from these organizations, funding is available from banks, provided a detailed business plan and formal request is approved. For these types of loans, there is aid available from various departments and NGO’s that enable inexperienced entrepreneurs to set up the appropriate documentations and procedures.
The Roodepoort Chamber of Commerce (ROCCI) is one of the biggest Chambers in South Africa, and is comprised of over 100 businesses in the Roodepoort area in Johannesburg. Contact ROCCI on (+27) 86 111 3304, send an e-mail for additional information, or visit the ROCCI website to find out more about what is on offer, or how it would benefit you to be a part of this ever-growing inter-business network.
Written By: Wesley Geyer
Creative Writer for ATKA SA
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