BUSINESS FUNDING & SMALL BUSINESS DEVELOPMENT
Become a part of Cape Town’s bustling business community
It’s certainly not an exaggeration when economists pin-point small business and entrepreneurial spirit as some of the best ways to stimulate economic growth. Not only does this alleviate the stress of job creation on national entities but it also provides opportunities to people who usually wouldn’t get employed at larger corporations. On the other side of the same coin, local business investment opportunities can be incredibly lucrative for financiers and investors.
“We live in a time where jobs are no longer secure or abundant. We are increasingly called upon to be self-reliant, to take risks and initiatives and to generate our own income.” Bev Moodie, Entrepreneurship Made Easy (2000)
In South Africa, SMMEs are expected to function as a driving force in the country’s social and economic stability. In fact, SMMEs have truly become an important focus for policymakers. For example, the government’s institution of Broad-Based Black Economic Empowerment, particularly its Enterprise or Supplier Development pillars, can facilitate the realisation of increased economic growth. When this is coupled with appropriate tax policies, it has resulted in SMMEs making a considerable and important difference to the South African economy.
In fact, the small businesses sector in South Africa does already make a significant contribution to the gross domestic product (GDP). According to South Africa Web, small businesses contribute in average 30% to South Africa’s GDP and SMMEs in South Africa absorb about 70% to 80% of the employed population.
Small Business Development in Cape Town
With a healthy economy and many business sectors already maturing in and around the City of Cape Town, SMEs find themselves thriving in this part of the country. However, more support is always needed! There are several initiatives and incentive schemes here that make entrepreneurial innovation even easier:
- There is a healthy culture of supporting young entrepreneurs with school-level funding and competitions.
- Business competitions like the FNB Enablis Business Plan initiative have provided over R10 million in potential start-up funding annually.
- Informal trading areas have been demarcated to assist with the hawking of goods and services to the general public. Traders who are selling food products are also required to be licensed, and thus educated, in regards to public health and safety.
- There are many entrepreneurial networking events and exhibitions in the City of Cape Town. This is facilitated by support by several entities, including the CTICC facilities.
- The Western Cape has also provided small business incentive schemes, loans and grants to entrepreneurs. This has led to the ever-growing amount of successful small business owners in the Western Cape.
- This region of South Africa also provides established initiatives for small business and entrepreneurial mentoring.
The City of Cape Town’s Small Business Support office
Our Business Hub team provides support and advice to hundreds of small businesses in Cape Town. While the City is still establishing start-up funding entities and there are ever-growing financial services in the region, this particular support system is able to provide guidance for small to medium enterprises and entrepreneurs right away.
In fact, the entity works tirelessly to promote entrepreneurship and assist with putting businesses in contact with support organisations, including investors and/or entrepreneurship programmes. This can make a big difference in finding the right financiers, suppliers and partners within the region.
Our office provides practical advice on finding small business funding in Cape Town. We can also assist with an outline of all the legalities involved. Our team will help you find the support and resources that you need in order to grow your small business.
The friendly faces behind The Business Hub
Additional Resources for Small Business Investment in Cape Town
There are a number of additional entities and resources available for small businesses and start-ups in the Western Cape. For example:
- The Finfind website links entrepreneurs with funds that match their specific needs from a database of over 200 lenders and more than 350 finance options! It is an online, easy-to-use one-stop platform for SMEs to access finance for the resources that they need to grow. It has been developed with national funding to assist anyone who needs to investigate the various possibilities for borrowing or lending in this sector.
- The Western Cape’s Red Tape Reduction business helpline can also be accessed on 0861 888 126, or email redtape@westerncape.gov.za.
- The City does not provide start-up funding but we provide guidance as part of our Business Hub Service.
- Get in touch with our team via email business.support@capetown.gov.za or +27 21 417 4043.
Entrepreneurial activity in the Western Cape is fast becoming the cornerstone of economic growth in South Africa. It is an important source of net job creation which any third-world country sorely needs.
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