Gigaba’s R1.5 billion startups fund gets nod from small businesses

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Small businesses have welcomed the news of a startups funds announced by Minister of Finance, Malusi Gigaba, during yesterday’s Medium Term Budget Policy Speech in Parliament.

Gigaba announced the fund, which will give support to local startups, but did not go into details as to what kind of support the fund will offer.

With a weak economy that isn’t looking to promising, government has repeatedly said it will focus on the startups and small business sector to help improve the economy.

“As the biggest provider of jobs in South Africa, small businesses are well-positioned to equip more youth with the skills, confidence and tools they need to start their own businesses. Coupled with the digital tools that are freely – or cost-effectively – available today, more people should be empowered to start their own businesses and help the government in its efforts to reduce unemployment and grow the economy,” said Viresh Harduth, Vice President of New Customer Acquisition at Sage Africa and Middle East.

“While no tax relief was announced, it was encouraging to note the establishment of a R1.5 billion SME fund by Gigaba. The fund will focus specifically on start-ups, and while we don’t yet know what support it will provide to new businesses, we’re hopeful that it will make it easier to start and run a business through reduced red tape, a supportive business ecosystem, and including small business representatives in policy discussions.”

Harduth said Sage looks forward to more interventions from government similar to this fund.

[Image – CC Government ZA]