Funding scheme sees small businesses thriving in Western Cape
Cape Winelands District Municipality
South Africa
Western Cape
Sector
Development Finance
The Cape Winelands District Municipality encourages entrepreneurship in the local community, and strives to foster economic development in the region through even the smallest businesses.
As part of its efforts towards this goal the municipality established the Entrepreneurial Seed Fund Programme in order to provide limited grant funding to Small Micro and Medium Enterprises (SMME’s) within the district.
The aim of the programme is to provide direct support to SMMEs in the district that require assistance in order to establish and help grow their businesses.
One of Cape Winelands District Municipality’s key objectives is to: “support the development of a diversified, resilient and sustainable district economy, in order to promote economic growth, build skills, create jobs and eradicate poverty’’.
Entrepreneurial Seed Funding Programme
The Entrepreneurial Seed Funding Programme identifies small business with the potential to succeed and provides a nominal amount of seed funding in the form of direct purchases of material or equipment.
This initiative is derived from the mandate of local government to support, entrench and take forward Local Economic Development.
This programme offers support to the small businesses that includes: limited capital equipment and supplies; business training and mentorship. The vast majority of SMMEs benefiting from this assistance are micro-sized business start ups.
Objectives of the Entrepreneurial Seed Funding Programme:
- to broaden income opportunities within the district;
- to reduce poverty and unemployment
- promote the creation and growth of enterprises owned and managed by small business entrepreneurs
- to promote Broad Based Black Economic Empowerment (BBBEE) and
- to diversify the local economy.
Success of the programme
Since the programme was first introduced in 2005, 123 different SMMEs have benefited from the Seed Funding Programme with more and more taking advantage each year.
The type of SMMEs that have been assisted include: hair salons, tuck shops, brick-making enterprises, clothing design and manufacturing, video production, catering companies, homestays (accommodation establishments) and waste recycling enterprises.
When the programme was first started in 2005/06, R207,000 was allocated to 26 SMMEs. The following year this fell to 16 SMMEs sharing R146,000.
In the 2007/08 financial year, 32 SMMEs were assisted sharing a pool of money totalling R510,000, while in 2008/2009, this rose to 49 SMMEs with an amount of R823,000.
For the new financial year (2009/2010) 61 SMMEs will be assisted with an allocated amount of R2.68-million.
SMMEs in the Cape Winelands District Municipality are encouraged to contact the municipality directly for more information about the scheme and whether they can benefit.
Enquiries regarding the Seed Funding Programme can be directed to:
Ms Gayle Daniels at telephone number 021 888 5151 or gayle@capewinelands.gov.za
Mr. Rhian van Wyk at telephone number 021 888 5146 or rhian@capewinelands.gov.za
Ms Prudence January at telephone number 021 888 5134 or prudence@capewinelands.gov.za
