Interesting article in news24, https://www-news24-com.cdn.amp....project.org/c/s/www.
#funding #fundingchallenges

Clouds with a silver lining
I studied the documents related to the newly launched TEF - Tourism Equity Fund - the past few days and reading through the numerous groups I belong to it becomes obvious the intention is flawed. To create transformation of the industry the TEF is focussed on funding the creation of new product whilst the industry is currently bleeding and a large number of tourism smme's are facing closure and tourism employees are facing retrenchment / loosing their jobs.
The minimum R 10,000,000 base for the creation of new entities are going to create a focus on the luxury / 5* market and its limited base.
I think the focus of the TEF should be on willing seller opportunities where a proper due dilligence by external auditors are done, ensuring the business has a decent client base, an established product on offer and longevity. This will create a new transformed entrepreneur base with opportunities in areas where actual product is and ensuring that the employees, mostly from local rural areas retain their employment and livelihood.
The average selling price would be in the R 1.5 mil to R 5.0 mil range, with this it could assist nearly 400 businesses and close to 4800 employees - this compared to 80 businesses with 1200 employees and a high probability of failure - simply because of the very depressed tourism market saturated currently with product and no client base, adding new product will only add to the depressed market.
I appreciate your comments and ideas.
#TEF #tourismequityfund #tourismentrepreneurs #discussion #realimpact

Financing a tourism business today is near impossible and lately controversial. Our government launched the Tourism Equity Fund this week and the drive is to create new tourism businesses in an already distressed industry. The funding amounts range from R 10 million to R 20 million therefore taking it away from the "real" smme's - business that employ 3 to 10 people. The focus is on transforming the industry, nothing wrong with this I feel, my only suggestion to the government would be to rather identify willing sellers of operational businesses with an established client base and already earning revenue and with potential. This will ensure our industry is transformed with surviving enterprises and not flooded with new entities with very little prospects. It will also ensure hundreds of employees retaining employment and not left destitute when current businesses close down.