Got a business idea but no cash to get it going?
You’re not alone. Many young people in South Africa have ideas but struggle to find funding and support. The good news is, some organisations may help with things like funding, training, mentorship and business guidance.
Before looking at specific organisations, it is important to understand the types of funding available:
- Grants: A grant is money given to a person or business that does not need to be repaid, provided the recipient meets the required criteria or conditions.
- Loans: A loan is money borrowed by a person (for example, an entrepreneur) or a business that must be paid back, usually with interest.
Each one has its own rules, so it’s worth checking what works for you.
Here are some places to start:
Government and public institutions
1. National Youth Development Agency (NYDA)
If you’re between 18 and 35, NYDA is a big one. They focus on young entrepreneurs and may offer grant funding (up to R200 000), training, mentorship and help you register your business — depending on your situation and whether you qualify. Ideal for both new and existing businesses.
2. Small Enterprise Development Finance Agency (SEDFA)
If banks won’t fund you, SEDFA is one place to look. They support small businesses and start-ups regardless of the entrepreneur’s age and may offer funding, along with help with things like business plans, registration and marketing.
3. Department of Small Business Development (DSBD)
This department runs different programmes, such as the Youth Challenge Fund for youth-owned (18-35) start-ups, that support small businesses. That could include funding, training or help finding customers and markets. SEDFA (no. 2) falls under DSBD.
4. National Empowerment Fund (NEF)
The NEF supports black-owned businesses with funding and investment support, especially businesses with growth potential. NEF comprises various funds with different focuses, such as tourism, furniture, rural, township, and community development as well as women empowerment businesses. There’s also a separate fund for spaza shops.
Private institutions and accelerator programmes
5. Technology Innovation Agency (TIA)
Got a tech idea or something innovative? TIA supports businesses like that. Support may include funding, partnerships and incubation — especially if you don’t have access to resources.
6. The Innovation Hub
If your business is in tech, green economy or science, this could be a good space to explore. They offer support such as mentorship, incubation, and connections to investors. Their funding focus is on education, science, SMMEs and industry, as well as grassroots innovators who operate outside formal innovation institutions with little access to infrastructure.
7. SAB Foundation
If you’re an SMME owned by women, youth, people in rural areas, or people with disabilities, then the SAB Foundation is worth checking out. They offer grants and funding programmes to students, people with disabilities, entrepreneurs, and those in farming.
8. Raizcorp
Raizcorp offers business incubation programmes, mentorship and support for entrepreneurs looking to grow their businesses, therefore not focusing on start-ups but on existing businesses. They offer business development programmes which include guidance, back-office support and access to markets.
You don’t need to “have it all sorted” to start.
But it helps to:
* Check if you qualify
* Understand what each programme offers
* Get your documents ready
Not every option will work for everyone, but the more you explore, the better your chances of finding support that fits your journey.
Funded by