The IDC has invested R4.7bn in youth entrepreneurship in the past 5 years
Budding youth entrepreneurs are set for success by partnering with the IDC
The Industrial Development Corporation (IDC) is a true supporter of youth-empowered businesses. Through its specialised youth-specific products, such as the Gro-E Youth Scheme and the Youth Pipeline Development Programme, the IDC partners with young entrepreneurs across SA to help their businesses succeed.
The Gro-E Youth scheme was introduced following the signing of the Youth Employment Accord in 2013.
In the past five years, the IDC approved just more than R4.7bn towards youth-empowered businesses, creating and saving 7,314 jobs in the process. Encouragingly, the heavy manufacturing sector, which includes the production of lime, cement, stone, glass, rubber and paper products, was by far the leading sector in which youths were funded.
The scheme is aimed at both start-up and existing businesses looking to expand. To qualify for the scheme, applicants need to meet the following criteria:
- be under 36 years of age;
- have ownership of more than 25% of the business;
- cost per job should not exceed R800,000 relative to total funding required; and
- BBBEE level 4 certification.
The IDC funds from R1m to R1bn, but the Gro-E Youth Scheme has slightly different specifications aimed at supporting the youth. With financing from as low as prime minus 3% for qualifying enterprises seeking between R1m and R50m, along with pre- and post-investment business support and mentorship, this is one of the best offers on the market to support young entrepreneurs.
Additional business support is offered through the Youth Pipeline Development Programme, which helps youth applications become investment ready and assists them with meeting and satisfying conditions precedent and ensuring their businesses’ long-term sustainability.
With all this on offer, budding youth entrepreneurs are set for success by partnering with the IDC.
Youths seeking to finance businesses that require more than R50m can still access the IDC’s normal funding to cover the excess beyond the Gro-E Youth Scheme’s limit.
Visit www.idc.co.za to see if you qualify for the Gro-E Youth Scheme, which offers finance of up to prime minus 3% for youth-empowered businesses needing a minimum of R1m in financing.
This article was paid for by the Industrial Development Corporation.