DTI fast-tracks black business
4 November 2003
The department of trade and industry (DTI), with funding from the World Bank, has established the Black Business Supplier Development Programme, aimed at fast-tracking small and medium black-owned enterprises with potential for growth into the mainstream of the economy.
The programme aims to help black-owned enterprises develop their core competencies, upgrade their managerial capabilities and become more competitive through restructuring.
The programme is an 80:20 percent cost-sharing cash grant incentive scheme that provides qualifying companies with access to business development services. It will fund businesses by up to 80 percent of their costs, to a maximum of R100 000.
The programme will also foster links between black-owned companies and corporate and public sector enterprises, to complement affirmative procurement and outsourcing initiatives in these areas.
Recipient companies will also benefit from the scheme by building
their capacity to enable them to successfully compete for corporate and public sector tenders and outsourcing opportunities.
All fees related to business development services, including travel and subsistence costs, will qualify for cost-sharing assistance in terms of the scheme. Costs for acquiring printed materials and software for implementing projects will also be covered, provided these do not exceed 50% of the total cost of the project.
Companies will also select service providers of their own choice, subject to obtaining at least three competitive bids during the selection process.
These incentives are targeted at projects that aim to improve the effectiveness of management systems of an enterprise, and to help the company enter into targeted markets.
To qualify, a company must have a minimum trading history of one year, and also:
- Be majority black-owned (51% or more) and have a significant representation of black managers on its management
team.
- Have maximum annual turnover not exceeding R12-million.
- Comply with commercial regulatory requirements applicable to its areas of business, including being registered with the Companies and Intellectual Property Registration Office and the SA Revenue Service.
Application forms can be downloaded from the DTI website.
For more information, contact the DTI customer centre at 0861 843 384.
Source: Department of Trade and Industry
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