Black-owned emerging businesses say the application criteria for the Asset Assist Programme, promoted as a support tool for SMEs is shutting out exactly the entrepreneurs it claims to uplift.
The Department of Small Business Development has re-launched the Asset Assist Programme which was previously implemented through the Small Enterprise Development and Finance Agency (Sedfa).
The department has invited SMEs to submit applications for assistance with machinery, equipment, working capital and acquisition of raw material from a maximum grant of R250 000. Only up to 20% of the total grant applied for, may be used for raw materials and stock.
While the programme is meant to help small firms access funding for equipment and other productive assets, there is concern among some township based and micro-enterprise owners that the requirements are more suited to established companies with accountants, lawyers and dedicated admin staff than hustling startups trying to formalise.
Applicants are expected to submit 12-month financial projections, detailed compliance documents and proof of trading history, paperwork that informal and early-stage businesses rarely have.
Sibusiso Ngwenya, who runs a mobile carwash with three employees, said the process is demoralising.
“They say the programme is for people like us, but when you apply, it becomes clear that they want someone who is already corporate-ready. If I had audited statements and projections, I probably wouldn’t need the programme in the first place,” Ngwenya says.
The disconnect highlighted a broader problem in enterprise-development where funding tools are designed around mitigating risk for financial institutions, rather than supporting entrepreneurs to grow into compliance.
Many small business owners operate from townships and peri-urban areas where formal accounting services are expensive, and turnover fluctuates week to week. For them, being asked to produce formal documents becomes an instant barrier.
Kwenzo Mashabela, a Nkomazi-based catering business owner says to process things takes time.
“Even registering the business number and tax clearance takes time and money, some of us are only starting to formalise now. But it feels like the system only wants those who are already advanced.”
Sector players argue that while accountability is important, development finance should acknowledge the reality that micro-enterprises are messy, seasonal and still evolving, not boardroom-ready from day one.
This experience is not unique. Across the country, black-owned startups have reported struggling to access “inclusive” programmes because of strict eligibility criteria. Many have turned instead to stokvel-style funding, family loans and side hustles to buy essential tools and machinery.
Yet without access to asset finance, businesses struggle to scale, reinforcing the same inequality that enterprise-development was meant to address.
Entrepreneurs say accessible support should include mentorship, bookkeeping assistance, help obtaining compliance paperwork, and realistic timelines. Others suggested tiered entry requirements depending on business size and stage.
Some worry that glossy announcements about funding programmes paint a picture of progress that does not reflect lived experience on the ground.
Aeron Makamu, a brick builder startup business owner based in Ruthfirst says the government and corporates say they are empowering SMEs, “but if the money only reaches those who already have offices and accountants, then what has changed?”
While the Asset Assist Programme remains active, small business networks are calling for consultation with township business forums and grassroots organisations toredesign the criteria so that genuine early-stage entrepreneurs can participate.
