Business funding tips from the NYDA Executive Chairperson
Written by Wendy Nyoni on 18th Mar 2020
Apparently, there are ample business funding opportunities available to young South African adults, NYDA executive chairperson breaks down how to access them.
Young aspiring entrepreneurs are encouraged to start businesses so that they may help lower the (approx) 53% unemployment rate in South Africa.
During his State of the Nation Address earlier this year, President Cyril Ramaphosa said, the National Youth Development Agency (NYDA) and the department of small business development would provide grant funding and business support to 1 000 young entrepreneurs in the next 100 days (since the SONA).
The Best Drive’s Tshepi Mabs asks Mtsweni if there a visible and proactive interest in business? As in are the young people that come to you well prepared, business plan, registered etc.
Speaking to the NYDA executive chairperson, Sifiso Mtsweni, on #TheBestDrive he reveals that when receiving applications, The NYDA often comes across individuals who are not only under prepared, but have very little business knowledge.
In most instances, when the organisation rejects applications, they are portrayed as corrupt antagonists.
“Too often when applications flood into our offices and online platforms, the moment you talk about compliance, SARS etc., applicants say we are trying to keep them away from their money,” says Mtsweni.
According to NYDA’s research, most young entrepreneurs apply for funding at banks or institutions that offer them loans and require them to pay said loans in 3 years. This, Mtsweni says, is problematic as research also proves that businesses fail in 3 years.
Thus, they have created comprehensively packaged grants (not loans) that also comprise of equipment/machinery, facilities, stock – you name it.
“The money is not a loan – it’s a grant. We also offer compulsory training, where we have experienced business people handhold startup businesses,” NYDA executive chairperson, Sifiso Mtsweni states.
Businesses must be able to employ at least 10 people
Their mandate refers, according to Mtsweni, that not only should your business be viable, but it should also have the capacity to employ a minimum number of people.
“We believe that before receiving funding, a business must demonstrate the capacity to create at least 10 jobs,” says Mtsweni.
Responding to perceptions of the organisaton, Mtsweni states that their reach in terms of marketing the opportunities they offer is to be national.
“We want to target people across the country, not just Gauteng. We want to target even those deep in the outskirts,” he adds.
Mtsweni also speaks on the importance of marketing in business;
“Funding you is one thing, but if you don’t have the market, you are likely to fail.“
For more info, find the NYDA online or at one of their 49 centres.
LISTEN TO THE FULL PODCAST HERE: