Young entrepreneurs whose businesses have failed after funding through the Youth Development Fund will not get any refinancing from the Department of Culture and Youth.
Minister of Youth, Sports and Culture, Shaw Kgathi made the revelation on Tuesday when responding to a question by Shoshong Member of Parliament (MP), Phillip Makgalemele. Makgalemele had wanted to know if the Minister was aware that most successful businesses the world over had failed at their infancy stages only to succeed later.
Makgalemele further argued that the government’s policy of not refinancing the failed projects was misinformed and unfair. In response Kgathi said he was aware that the experience that one would have accumulated from managing a failed business venture may lead to business success.
He said upon applying for funding, his ministry encouraged people to make thorough market research and come up with viable business plans that would not fail. “Success in such instances would mainly be attributed to the promoter having refined their business strategy and aligned it to the dynamic business environment.”
The Minister said the policy provision was intended to ensure continuity and to fund as many young entrepreneurs as possible. He advised that the youth whose projects have failed still have the option to seek alternative sources of funding. “Due to the scarcity of resources, and the large number of applicants awaiting funding from the same source it will be unfair to refund those who have already benefited,” he said.