Small business owners looking for a way to structure sustainable black empowerment deals have been thrown a lifeline by Business Partners.

The company, a funder of small and medium enterprises, launched its R325-million Empowerment Fund yesterday.

A R200-million Tourism Fund was also launched at the same event at the Beach Hotel in Port Elizabeth.

The empowerment fund is aimed at facilitating black economic empowerment deals valued between R1-million and R5million.

Well-established small, whiteowned enterprises with a profit history of three to five years will be considered for such funding, explained Business Partners executive director Christo Botes.

He said the initiative was solely funded by Business Partners and constituted the first phase of the project, which they expected to be fully subscribed within three to five years.

When this point was reached the company would consider partnering with other institutions to launch a second phase.

Botes said it was imperative that the owner selling the business be committed to black empowerment, being required to retain a stake in the business and transfer skills to the black equity partner.

The black partners would also be required to be active owners and managers of the business with an ability to add value.

Nelson Mandela Bay Nafcoc president Kutloano Headbush welcomed the introduction of the fund, but said the major obstacle of access to funding for start-up enterprises still needed to be addressed.

The tourism fund aims to provide entrepreneurs entry to this growing market, with the Eastern Cape identified as a region harbouring strong growth potential.

Events such as the 2010 Soccer World Cup, the annual SA Ironman competition, and the growing eco-tourism market were seen as catalysts in the province for small to medium businesses in this industry.

Deals valued at between R250 000 and R15-million would be considered, with Business Partners’ Pierre Mey saying the average deal was expected to be around the R1-million mark.

At least half of this fund’s R200-million would be dedicated to the establishment of black businesses, while an additional 35% was aimed at women-empowered enterprises.

Former Percci CEO Alfred da Costa, who was keynote speaker at the launch, welcomed the new funds, pointing out that the country’s future socio-economic stability and growth was dependent on a strong black middle class.

He bemoaned the reliance of Port Elizabeth’s economy on the automotive industry, which was traditionally held in white, particularly foreign, ownership.

This, he said, was not sustainable, with the picture in the tourism industry not much rosier.

A lack of skills at the top end of these industries was hampering progress, he suggested, and called on companies to implement skills development strategies to avert a crisis down the road.