START-UP Namibia will dish out N$7,5 million to small, budding enterprises of less than five years old.
This is to help them weather the Covid-19 storm.
Funds are available on a competitive basis, and start-ups must meet certain requirements, with women-owned and tourism endeavours prioritised.
Start-Up Namibia spokesperson Leitago /Narib announced the second round of this initiative last week.
Start-ups and small businesses meeting the specified criteria will receive a direct supplement to pay wages, fixed costs, and to offset the decline in revenue caused by the fall in aggregate demand as the economy slows down.
As with the first round, grants of N$15 000 each will be provided.
During this round a total of 500 start-ups will benefit, as opposed to 200 during the first round.
In addition to female-led or female-founded start-ups, those in the Erongo region and in the hospitality and tourism sector are especially encouraged to apply, /Narib said.
Nearly five months after the first lockdown, small enterprises remain in limbo, while the resumption of operations is slow, coupled with retrenchments and salary cuts.
This is worsened by being cut off from external demand – especially in the tourism and accommodation sector.
The country remains in stage 3 of the state of emergency, which extends pressure on various business operations.
In May, Start-Up Namibia, together with the Ministry of Industrialisation and Trade and funds from the German government, successfully made available the Covid-19 Start-Up Grant of N$15 000 each to 200 businesses.
Ellen Gölz, deputy head of mission at the German embassy in Namibia, says the German government is “very happy to extend targeted support for start-ups and young SMEs during this challenging time”.
Additional funding for the grants are provided by the German Federal Ministry of Economic Cooperation and Development.
Gölz is hoping that innovative entrepreneurs, especially women, will be able to continue with their entrepreneurial activities because of to the grant.
She says the grant lay the basis for the “sustainable and inclusive economic recovery of Namibia”.
Applicants must be registered and in operation for less than five years, and must have a business bank account.
Furthermore, they must submit their founding statement from the Business and Intellectual Property Authority (Bipa), and bank statements of their business account from June to August online.
The entrepreneurs should also submit their business continuity plan, detailing how the funds would be used, and their strategies to save jobs.
/Narib said providing a micro, small and medium enterprise certificate would be an advantage.
Online applications opened last week and entrepreneurs have until 16 September to apply.
An independent committee, comprising Start-Up Namibia stakeholders and partners, will assess applications.
Grants will be disbursed to successful applicants in a single payment at the beginning of October.
Applications are to be submitted to www.startupnam.org
