Would you say no to a gift of money?

Why would anyone say no to a gift of money from the government?

Because it is not really a gift! It's a deal between government and the recipient.

The Department of Trade and Industry's grant schemes never offer to pay a grant without setting specific conditions. Why? Because these schemes exist to help government achieve it's goals. Government has an economic policy and it is trying to satisfy the objectives of that policy by offering grants. For example, the government's policy is to offer grants for industrial development, because industries create wealth through job creation, exports, etc. If your project will not result in industrial development, they do not want you to have that grant.

So, DTI needs to ensure that you will keep to your part of the deal in exchange for the grant.

How does government ensure you will keep to your part of the deal? This is where many grant programs lose their impact. The objectives of their policy need to be translated into a set of rules and that set of rules needs to be implemented in an administrative system. If the administration of a government department is poor, or if the rules have been poorly developed, then the objectives of the grant program are not achieved. Not only that, but the public is frustrated, feel cheated and their projects do not benefit from the grants, even if they did receive it.

So, why would someone say no to a gift of money from government?

Because the deal is sometimes not worth it.

  • The effort to try and comply with the conditions for obtaining that grant may be too much.
  • The cost of grant administration could be too large when compared to the benefit.
  • Businesses sometimes regard the conditions for obtaining the grant as a limitation of their freedom to manage their business as they see fit.
  • Businesses sometimes fear the frustration they might experience to try and extract the approved grants from a poorly administered system.

So are there many people who say no thank you?

No, but very often we say no! Because we know the rules and we know the government's ability (or inability) to administer the schemes.

Dectra will not lead you up the garden path by just promising you gifts from government. Your first meeting with us will be a session to assess your position against the rules and the administrative issues of the grant program, and we will provide our considered opinion and advice in writing. We know that clients with unrealistic expectations will in the end be unhappy clients.

Theo Meintjes
Managing Director: Dectra

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Level 4 BEE Certified 100% Recognition  

Dectra is rated once per year and provides a copy of our credentials on request.

ICA - Icentive Consultants Association Member  

The ICA is a voluntary association that aims to ensure good ethical and quality services in our industry and assist in liaising with the Department of Trade and Industry on behalf of all specialists in our field. Dectra has been a member since inception of the association in 2005.

www.incentiveconsultants.co.za

SABS - ISO 9001  

Trusting us with large cash grant and subsidy claims, our clients need to be assured that our skills and procedures are of the highest standards. The ISO 9001 quality management system provides that assurance and we are proud to be certified as compliant with it.

www.sabs.co.za