When it comes to raising funding for your business, there are various sources and forms to look at.
Fortunately for manufacturers, there are some options that are very appealing.
Governmental funding is available for manufacturers of almost any product. This funding is available in the forms of both grants and loans.
Most manufacturing concerns require upgrades to tools, equipment and machinery and, in the case of expansions, new machinery. Developmental Funding (i.e. funding from the government) is available to support factory expansions, raise competitiveness and improve energy efficiency.
Just one of the available funds – the Manufacturing Competitiveness Enhancement Program (MCEP) – a grant run by the DTI, has so far supported over 900 projects with over R5.3 billion being committed.
Manufacturing contributes toward growth of the economy, creates jobs and transfers skills. The result is that manufacturers are supported to contribute to the growth of the nation.
The spotlight being shone on manufacturing is ever increasing. With economic growth at low levels and continued high unemployment rates, manufacturing is hailed as a means with which to address these issues.
To be considered for this funding, a manufacturing concern needs to have been in business and able to show track record. A business must also show its commitment to transformation by being at least level 4 BEE compliant (or have a plan to be level 4 within a certain timeframe).
The funds available from developmental funding institutions (DFIs) can help to boost productivity of a manufacturing concern – generating higher profits for shareholders while contributing towards achieving the objectives of job creation, economic growth and skills transfer.
If you are unsure as to whether or not your manufacturing concern is eligible to access these funds, get advice and assistance from a professional in the field of raising developmental funding.