NEF cuts business plan funding for entrepreneurs
14 April 2015
The National Empowerment Fund (NEF) has cut one of its core services which sought to assist South African entrepreneurs with the design of business plans, a cost these entrepreneurs will now have to foot themselves. This will certainly have a damaging effect on the ability of entrepreneurs and SMME's to reach the NDP's 10 million jobs target by 2030.
A concrete and extensive business plan is key to the sustainability of any small business, and thus cutting this service will only add more cost and regulatory burden to already struggling entrepreneurs and small businesses.
The service, provided by a company called Enterprise SA, was suddenly cut this week via email by Enterprise SA CEO, Rodney Prinsloo. ""We hereby inform you that the NEF's Business Planner Tools will not be available until further notice"" said Prinsloo.
While the NEF says that the service was terminated because the contract with Enterprise SA had lapsed, Prinsloo claims the NEF cancelled the contract without the requisite two month notice period, due to the fact they owe his company over R400 000 in back pay dating back to May last year.