Small business has a major role to play in economic growth in this country. This was made clear by the tax breaks given to small businesses in the Budget Speech in February.

Small business has a major role to play in economic growth in this country. This was made clear by the tax breaks given to small businesses in the Budget Speech in February.

Many South Africans have seriously considered starting their own company, but according to HBD Venture Capital, one of South Africa's top venture capital companies, enthusiastic entrepreneurs often come unstuck when they realise that they have no idea how to finance their business idea.

Julia Long, chief executive of HBD, says: "There are a number of options available to fund new businesses, including bank finance, various options from government and venture capital funding, but it can be difficult to access these.

"Entrepreneurs must develop a professional business plan and conduct comprehensive research into their markets, competitors and pricing before they approach any funders."

Entrepreneurs should also choose carefully who to approach. Venture capital funding provides an excellent injection of capital and expertise at start-up or early stage.

"At HBD we have a very focussed investment mandate. We invest only in early-stage companies which have existing customers and have generated revenue for at least six months.

"We choose our ventures carefully for their potential for success," says Long.

Visit: www.hbd.co.za/bus-plan.html or www.uyf.org.za for guidance.