It proposes to make available R1000 each to 1000 unemployed people to start businesses. And, what's more, it is promising to ensure that citizens from every municipality in the Province and all parts of the City are given an equal chance to participate.
"In essence we are inviting unemployed people to enter a challenge in which those with the best business ideas will receive a loan of R1000 for a period of six months", says Lynne Brown, MEC for Finance, Economic Development & Tourism.
"We'll get a panel of experts to judge the ideas. Where necessary we will invite entrants to an interview if their idea is short-listed. The best 1000 will be invited to take up the R1000 challenge."
"The rest is up to them. Whoever uses the R1000 to best effect to start a business, will receive an extra R5000 towards their new venture."
The 1000X1000 Challenge, as the scheme has been dubbed, differs markedly from other Provincial initiatives to support small businesses in that winners will be mentored throughout their development by the RED Door, the Province's recently-launched one-stop shop for supporting small business.
MEC Brown has identified support of SMMEs as one of the elements crucial to economic development in the Western Cape, because SMMEs have the ability to create jobs for more than just the owners of the businesses. This job creation will have a direct impact on reducing Provincial unemployment.
Therefore, by recognising the importance of micro businesses to a healthy economy, the 1000X1000 Challenge will extend opportunity, especially to youth and the chronically unemployed.
The 1000X1000 Challenge is offered to those who do well in each district municipality and five regions within the city. The overall winner will be announced at an awards ceremony in November 2005. "If this pilot project is successful, I will seek the funding to run a another challenge and increase the number of unemployed people participating", Brown has promised.
"This and the RED Door Initiative is just the beginning of the Provincial roll-out of our BEE implementation plan. It will deliver on our iKapa Elihlumayo strategy of promoting increased economic growth, employment and economic participation for all to make concrete the Premier's vision of the Western Cape as A Home for All."
The challenge starts this week with a Province-wide print and radio advertising campaign and applicants will have 45 days to submit entries. Enquiries may be directed to:Thabo Mabaso
Media Liaison Manager/Spokesperson
Ministry of Finance, Economic Development and Tourism
Tel: 021 483 3531Cell: 083 255 5689E-mail: tmabaso@pgwc.gov.za
Head of Communications
Department of Economic Development
Tel: 021 483 8759
Cell: 082 494 7990
E-mail: lschuurm@pgwc.co.za
