This is why funding isn’t a problem with the IDC and SEFA

YFM partnered with the Industrial Development Corporation (IDC) to help educate South Africa’s youth on the governmental funding opportunities available to them.

Tumi Sefolo of the Small Enterprise Finance Agency (SEFA) spoke to Khutso Theledi about what SEFA had in store for the youth. SEFA is of the Department of Small Business Development (DSBD) is a subsidiary of the IDC.

The unemployment rate in South Africa is at an all-time high and according to Stats SA, recent findings state that the youth makes up roughly 55.2% of the unemployed. You can then understand that this would cause a few of the unemployed youth to jump into hustling mode an most likely become an entrepreneur.

Yet becoming an entrepreneur also comes with its set of challenges seeing as most early-stage businesses that are in the economy really struggle to get funding. It is usually due to the fact that funders or investors look for some form of proof that the business has held up before actually finding it.

“SEFA provides financial and non-financial support to small and medium-sized enterprises”

-Tumi Sefolo elaborates on what SEFA does.

Its purpose is to address market failure by providing financing to Small businesses, funding that isn’t readily available in the market. Therefore the DSBD has challenged SEFA and their sister company, the Small Enterprise Development Agency (SEDA), to support 100 000 youth-owned businesses within 3 years.

“Pitch for Funding” sessions are held countrywide. Head on over to www.sefa.org.za for more information with regards to how you can get funding for your business.

For more in this interview, listen here: