"If you think you are in control, then you not going fast enough", Mario Andretti.

The above statement has nothing to do with what we will talk about today, but I thought it would be cool to have it there. I will tell you a short story about trying to get funding in South Africa and how it is set up.

You obviously might think the funding structure is set up to make sure small businesses succeed and prosper, I hate to break your heart, but the whole thing is set up to make sure businesses fail.

Hang on, don't throw those stones yet.

Time

I have a customer of mine who first applied for funding in February 2022 and they were approved in July 2023. It takes 2 months for a business to collapse, so you can imagine what sort of changes that particular business had to go through before it could even get a callback.

The time frame it takes to have funding through government agencies is one of the reasons most promising small businesses fail; it would be nice if they could at least take 14 Days and that would be a win for small businesses.

Personel

This is a bit complicated, when a small business owner applies for funding they are assigned to an intern who handles the initial stages, then they are assigned to an account manager, who assigns it to another person and then we have the people that are responsible for vetting, etc. Each of these people has an opinion about your business and none of them would go the extra mile to pick up the phone and call the business owner for clarification. So what they do is they send an email to Miss S; who then emails Mr. X; who has to call Mrs. P and Mrs. P calls the business owner, then relays the message back. That whole process may take a month; sometime it may be just a simple question like; how many branches do you have, or are you still operating?

Scope

One thing that would have you running around is the scope of the fund and correctly identifying an agency that you fall under. As you may know, there are multiple government funding agencies you could apply to but each covers a certain industry at a certain stage and none of them clearly communicates that. To make matters worse you could make an application and after 18 months, 120 calls, 200 emails, and 50 site visits they tell you you applied for the wrong funding so you should start the process again. By then you are so demotivated you just ditch the whole thing.

Imagine if we had a department with a call center whose sole process was to help with funding applications and matching business owners to relevant accelerator programs and funding structures.

Go Global.

There are a number of global accelerators that could take your business further and they are efficient. Depending on your industry you will discover their programs that offer mentorship, credits, Venture Capital, etc.

I know in our case we have found a home at Nvidia Inception and Amazon Loft.

Resources

Here are a few resources to help you with your journey

IDC / Loan:

This applies to mostly manufacturing processes and highly recommend it if you have an established operation wishing to expand:

https://www.idc.co.za/apply-for-funding-shortcode-for-all-pages/

SEFA / Loan / Grant:

Sefa's notable funding structure is TREP which includes a grant that you do not have to pay back, there are different types of finance options you just have to decide which option suits you better. You need to be operational for at least a year to stand a better chance.

https://www.sefa.org.za/

SEDA / Grant / Loan:

SEDA offers grants and loans to start up small businesses, they welcome fresh and new businesses.

http://www.seda.org.za/

NYDA / Grants:

For youth especially in less privileged rural, township, and semi-urban areas.

https://www.nyda.gov.za/

SAB Foundation / Accelerator:

They do not just write you a check, they nature your business and provide skills in managing your business.

https://www.sabfoundation.co.za/

Nvidia Inception / Accelerator:

Robotics, AI, and software start Ups

https://www.nvidia.com/en-us/startups/

Check Out!