Shanduka Black Umbrellas Durban Incubator Project
Partner name: Shanduka Black Umbrellas
Project name: Shanduka Black Umbrellas Durban Incubator
Funding round: CFP 1
Funding: Jobs Fund grant R10 500 000
Matched Funding R8 219 000
Window: Enterprise development
Location: Durban, KwaZulu-Natal
Partners: None
Problem statement:
Emerging black-owned businesses in South Africa have a high failure rate, largely due to market barriers, lack of skills and training, inaccessible finance and lack of support institutions.
Shanduka Black Umbrellas aims to collaborate with partners in the private sector, government and civil society to help small black-owned businesses. The organisation was first conceived as Black Umbrellas, a project spearheaded by Cape Town social entrepreneurs Charles Maisel and Mark Frankel to support SMMEs. In 2009, the Shanduka Foundation partnered with Black Umbrellas to escalate the project countrywide, investing R5.2 million to establish and operate an office in Gauteng.
The project aims to ensure that at least 50 percent of all businesses selected to be incubated become sustainable business entities. The national average for start-up success is between 10 and 20 percent; the majority of start-ups do not survive beyond their first three years of existence. The incubator will reduce the likelihood of business failure by providing businesses with office infrastructure, professional services and a structured mentorship programme at a subsidised rate during the critical first three years. The incubator will also help businesses that are finance-ready to access funding through third-party service providers. Shanduka also builds the profile and image of existing entrepreneurs and businesses as role models through the media, networking and public relations activities. This also helps to promote entrepreneurship as a desirable career choice for young people. The project creates job opportunities by recruiting and supporting businesses with the potential to grow and generate at least four jobs.
Expected results:
New permanent jobs 206