The Eastern Cape Development Corporation (ECDC) has set aside R8 million for its Small Town, Rural and Township Entrepreneurship Programme (STRTEP), which was officially launched in Mthatha on September 29.
ECDC chief executive, Ayanda Wakaba, says that through the programme, their aim is to see informal businesses graduate to TEP which will provide both financial and non-financial support to small towns, townships, and rural based enterprises to the maximum of R150 000 to qualifying enterprises with bulk of the money earmarked for businesses that currently operate informally. The money disbursed by ECDC to a qualifying enterprise through the programme will not have to be paid back.
“We believe that there is a gap in the products that are designed to address challenges of small, micro and medium enterprises (SMMEs) and that gap is seen in an enterprising individual who operates informally, like a hair salon, but cannot access funding for their business due to the fact that there are very few products to support such businesses within the state,’ said ECDC chief executive, Ayanda Wakaba.
Wakaba says although the successful applicants will not have to pay back the money to the corporation there are conditions attached that ensure that there is commitment on successful applicants not to view the funds as free money.
He further said a great deal of effort has been dedicated to cutting red tape to ensure that applicants find it easy to access funding through the programme.
“We have invested a considerable amount of time to make it not look like a loan application and to be flexible in terms of initiation, we can initiate when we come across a clear opportunity to assist and can also respond when an individual comes and presents their case.”
“We have formed smaller committees with a lesser number of quorums that are necessary to make a decision and have removed the requirement for an elaborate business plan to apply for the programme,” Wakaba added.
Wakaba says the only way for successful applicants to pay the corporation back was to make a success of their businesses, adding that those who plunder the financial incentive will have to pay it back as ECDC will exercise its right to convert it to a loan.
More information on the ECDC’s STRTEP can be found on www.edcd.co.za or by visiting the corporation’s offices.
