Development Funding Platforms
Access to funding has long since been recognised as one of the obstacles entrepreneurs face when starting or growing a business.
THE RECENTLY ESTABLISHED partnership between the FFA and the Institute of Success launched the FFA Enterprise Development Funding Platform in January this year. The objective of the partnership is to train more than 200 entre-preneurs and to fund (via grants) a minimum of 50 businesses during the course of the year.OUR MANDATE The platform aims to:
- Assist entrepreneurs by:
- Providing enterprise development teaching,
- Providing business coaching and monitoring for three years,
- Securing grant funding applications for which no own contribution is required.
- To act as a catalyst for:
- Job creation
- Growth in the South African economy
- Transparency and honesty in our dealings
- Complete an enquiry form
- Submit an application supported by a business plan and the relevant docu-ment as indicated on the application checklist
- Submit to the pre-investment committee due diligence
- Submit to the investment committee assessment
- Complete the funding agreement
- Submit to the disbursement due diligence
- Disbursement of funds
OUR OBJECTIVE Our objective is to assist qualifying applicants, who do not have qualify for other means of funding to start or grow their business, to access grant funding for this purpose.
A DEFINITION OF SUCCESS Success in terms of this project is defined as the opening of a business, achieving the objectives of the business as set out in the business plan, earning an income higher than the applicant is cur-rently earning and sustaining that business through the initial three year period.
OUR BENEFICIARIES Applicants who have received financial and/or non-financial assis-tance in securing a viable and sustainable business concept.
FUNDING PERIOD The funding period will run from January to December each year, subject to the availability of funds. Applicants whose applications are unsuccessful due to a lack of available funds may re-apply in the following funding period. WHO MAY APPLY?
- South African PDI’s,
- Small enterprises just starting out,
- Existing businesses that have demonstrated their viability and sustainability and want to expand their operations.
- Applicants, if selected, must attend the compulsory ten-day Enterprise Development training course. Applicants who are successful in their funding application must subscribe to a three year business coaching and evaluation program.
APPLICATION MINIMUMS AND MAXIMUMS The minimum application is set at R1,000 while the maximum in each application will be individually assessed by the investment committee. NUMBER OF APPLICATIONS Applicants will be limited to one successful application per funding period. OUR PILOT TEST RESULTS Winning the war against poverty by building entrepreneurs
One of the success stories of our pilot operation is firefighter, Sandile Mthembu. Sandile is a Work On Fire (WoF) team leader based at the Vryheid airfield. With the assistance of grant funding arranged with the help of the FFA Enterprise Development Funding Platform, he opened a mini supermarket late last year. In month one he realised a turnover of R11,000 which escalated quickly in month two to R45,000 and then doubled in month three to a staggering R92,000 turnover.
Sandile says, “It’s very exciting and I’ve learnt a lot from Dr Bahadur. I had done the stock assessment and got quotes for the building and renovations, all I needed was the funds to get started.
In 20 years’ time I want to be managing a big supermarket and open up opportuni for others.
I would like FFA to carry on teaching others what they have taught us. This programme is so helpful that it must keep growing.”