Community Empowerment

Business Support Scheme for Bakeries and Confectioneries

By Super User 706

The Department of Small Business Development is calling all small scale, micro, informal and cooperative enterprises based in townships and rural areas to apply for Business Support Scheme for bakeries and confectioneries. The scheme is designed to assist entrepreneurs with a basket of development support programmes as well as financial support for business entities to achieve stepped up access to market, scaled up opportunities for business growth and improved access to credit.

Funded through the Township Entrepreneurship Fund, this scheme provides R20 000 working capital for bakeries which is inclusive of revolving credit facility and R10 000 for confectioneries. The scheme will also facilitate access to bulk buying and SEFA-backed revolving credit facility for input materials through participating wholesalers. Optional to the scheme is a contribution towards a once-off cost of equipment (paid directly to equipment suppliers) based on need.

Business Development Support will assist with compliance on minimum bread and confectionery nutritional requirements (approved dough mix) and the related testing. The support scheme will also facilitate compliance with Environmental Health and Food Safety regulations and training on shop floor management and conformity.

The scheme will also give support on business and financial management training and mentorship as well as facilitate stepped-up access to markets through off-take agreements.

Who can apply?

  • Owner-managed micro, informal (home based) and cooperative bakeries and confectioneries.
  • Bakeries and confectioneries with a turnover of less than R500 000 can apply for both financial and business development support.
  • Small scale bakeries and confectioneries with a turnover more than R500 000 can only qualify for business development support.

Qualification criteria

  • Must register on the National SMME database on https://smmesa.gov.za/
  • Be informal, micro or cooperative business including home-based.
  • Be registered as a legal entity (Companies and Intellectual Property Commission and SARS).
  • Have valid CIPC registration documents.
  • 100% South African ownership.
  • 70% employees South African
  • Valid SA ID.
  • Minimum trading period of six months.
  • Business with a turnover not more than R500 000 per annum.
  • Willing to participate in the bulk buying scheme as organised by DSBD and any of its agencies.
  • Must be owner-managed and based in a township or rural area.

How to apply for the scheme?

  • Must register on the National SMME database on https://smmesa.gov.za/
  • Complete an online application form/ Bakeries and Confectionery Support.
  • Complete all the mandatory fields.
  • Upload all the required supporting documents.
  • Submit your application online.