Question NW586 to the Minister of Small Business Development

Reply:

The applications from the SMMEs are funded from the University Technology Fund (UTF) a joint venture between University of Cape Town (UCT) and Stellenbosch University (SU). Although funded through UTF, they are managed by Stocks and Strauss. All the clients that they currently have, are leads from the university and none of them are from the townships. Using the SMMEs CK documents, Stocks and Strauss can pick up the location/address of the clients.

• Stocks and Strauss collects all the documents submitted when applicants apply for funding including the proof of addresses.
• A point of noting is that all the SMMEs funded under UTF are graduates or students of either UCT or SU.
• The criteria are that applicants must be registered or have been with these universities. This means that the University has all the information of the applicants. The Legal agreement stipulates that the identity of the students and applicants be protected.
• According to the legal agreement between sefa, UTF and other funders, the SMMEs should have an idea of the technology to be funded to qualify for funds.
• The idea is then conceptualised on paper at the pre-seed funding stage where sefa does not participate but only the SMME.
• Once the idea is approved for implementation, sefa then starts investing by paying for the legal costs to register the technology and investing in the venture/project. When conducting such exercise all the documents stated above are requested and protected for security reasons in line with the agreement.

The location of ventures/projects of such nature is therefore based on commercial viability and attraction.

STELLA NDABENI-ABRAHAMS

MINISTER: SMALL BUSINESS DEVELOPMENT