The sector of the economy that easily falls by the wayside is that of creative entrepreneurs. Making up only 4% of South Africa’s GDP, they still contribute R271 billion. Individuals who fall into this sector are in design and creative services, audio-visual and interactive media, visual arts and crafts, books and press, performance and celebration, and cultural and natural heritage (some sources also include athletes in this sector to account for the jobs that sports create).
With active and celebrated industries of cultural arts, film, fashion and advertising, to name a few, it’s easy to forget the valuable contributions the entrepreneurs in these fields make to South Africa’s economic growth. But it’s therefore no surprise that South Africa has launched a dedicated Creative Biz Fund aimed at helping entrepreneurs in the country’s creative industries.
Launching the Creative Biz Fund
Minister Stella Tembisa Ndabeni officially launched the Creative Biz Fund in Soweto. She set out the government’s commitment to strengthening the creative economy.
The fund will support businesses across the creative economy, including clothing, textiles, footwear and leather, music and sound recording, as well as the wider content economy covering film, television, immersive media and digital media. It is the government’s commitment to strengthen support for creative enterprises and unlock opportunities across South Africa’s thriving and growing creative economy.
The Creative Biz Fund will initially focus on three broad areas of the creative economy:
- Clothing, Textiles, Footwear and Leather – supporting fashion and textile enterprises across the value chain.
- Music and Sound Recording – supporting businesses involved in music production and related activities.
- Content Economy – including film, television, immersive and digital media.
The Fund considers multiple parts of business support; it will take an integrated approach that combines finance with technical assistance. It combines funding with sector-based business development and technical support, helping creative enterprises strengthen operations, protect and monetise intellectual property, increase production capacity, meet compliance requirements and reach new markets.
A key feature of the model is collaboration between industry and financial intermediaries to address some of the unique financing challenges faced by creative enterprises.
Turning Creative Inspiration into Viable Business
Creatives’ strengths lie in their skills and talents; their ability to transform materials into art and functional pieces. They learn quickly that their creations are worth something, but then comes a multitude of other problems: How do you price it correctly? How do you reach your market? How do you balance creating with turning a profit? How do you finance a project with no real tangible assets to borrow against?
The Department of Small Business Development (DSBS) recognises that creative talent does not automatically produce commercially sustainable businesses, yet it has the capacity to create numerous jobs. That’s why supporting this sector of the economy is imperative.
By providing a blend of technical and financial support, the DSBS emphasises capacity building, shifting the focus from funding to sustainability.
The Soweto Launch
Choosing Soweto as the launch for the Creative Biz Fund is a strategic choice that signifies the commitment that the government is making to support creatives, especially at a grassroots level.
Soweto is one of South Africa’s most prominent cultural and creative centres. Many musicians, performers, fashion entrepreneurs and filmmakers who called this township their home have become prominent figures in their respective industries.
The launch boasted exhibitions, masterclasses and live performances that showcased the capacity of the creative economy.
A few highlights included:
- The “From Script to Screen” film showcase,
- The “Creativity on the Runway” fashion show,
- Practical insights from David Tlale, Thato Moraka and DJ Christo,
- Various music performances.
Industry-Specific Support
Although this fund that recognises the creator economy at large may be the first of its kind in South Africa, there are other funds, grants and support for industry-specific artists and creators. Some of these are:
- National Film and Video Foundation (NFVF): Provides production, development, and market access support for film, television, and digital content through the NFVF and its Film Festival and Market Attendance Funding Programme.
- The Department of Trade, Industry and Competition (the dtic): Offers financial incentives to boost local productions, including the South African Film and Television Production Incentive and the SA Emerging Black Film Incentive.
- Industrial Development Corporation (IDC): Supplies debt and equity financing for media infrastructure and content distribution through targeted initiatives such as Youth in Film.
- National Empowerment Fund (NEF): Funds black-owned media entrepreneurs and production businesses via its Television and Film Fund.
- Department of Sport, Arts and Culture (DSAC): Offers funding for large-scale creative projects, festivals, and showcases driving job creation through the DSAC Strategic Partnerships Funding Round.
- SAMRO Music Creation Support Fund (MCSF): Provides micro-grants to SAMRO members for creating new, royalty-generating music through the SAMRO MCSF.
- Business and Arts South Africa (BASA): Provides seed funding micro-grants for cross-sector collaborations between artists and businesses via the BASA Supporting Grants Programme.
- Clothing, Textiles, Footwear and Leather Growth Programme (CTFLGP): Managed by the Industrial Development Corporation (IDC) for the dtic, the CTFLGP provides concessionary loans and grant funding across four main windows.
Creative entrepreneurs are encouraged to keep their eyes open for opportunities, as some grants are made available for only a short period of time every now and then. Additionally, further information on how to apply to the Creative Biz fund will be announced soon.
