Latest news with #DarleneMenzies
Zawya
24-06-2025
- Business
- Zawya
SME South Africa hosts inaugural funding summit to empower local entrepreneurs
SME South Africa's first annual Funding Summit took place on 12 June 2025 at The Empire Conference and Events Venue in Parktown. The full-day event brought together more than 400 delegates, including small business owners, funders, and thought leaders from across South Africa - even as far as the Eastern and Western Cape - to engage on one of the most critical success factors for SMEs: access to funding. A strong speaker line-up tackles real funding barriers The summit featured 19 speakers who brought deep insights from their fields - including venture capital, bootstrapping, agricultural funding, debt finance, and alternative financing models. Notable voices included Darlene Menzies, Sheldon Tatchell, Jameel Khan, and others. 'We are excited about the wonderful feedback we've received,' said Velly Bosega, CEO of Oak Ventures (SME South Africa). 'I'm proud of my team for bringing this vision to life and for their dedication to serving our audience and clients.' Major commitment: R300m inclusive justice institute partnership A headline announcement came from Litha Kutta, Executive at Woolworths Financial Services, who spotlighted the launch of Woolworths' Inclusive Justice Institute - a major initiative designed to tackle food security, education, and MSME development in South Africa. In total, R300m has been committed to the Institute, with R200m from Woolworths and R100m from the Land and Agricultural Development Bank of South Africa (Land Bank). The Institute is home to two nonprofit arms: the Enterprise Inclusive Justice Institute (EIJI), which supports MSME mentorship and integration into Woolworths' supply chain, and the Community Inclusive Justice Institute (CIJI), which focuses on food security and basic education. The partnership aims to transform South Africa's agricultural and retail supplier landscape, with a strong emphasis on sustainability and inclusive growth. 'This initiative is a practical demonstration of how a leading retailer may empower small enterprises,' said Minister of Small Business Development, Stella Ndabeni, at the launch event in Cape Town. 'Woolworths has a partner in us.' Empowering entrepreneurs through access and education With the support of silver sponsor FNB and bronze sponsors SMEgo and Fund the People, the event underscored SME South Africa's core mission: to make applying for funding accessible and transparent for all South African entrepreneurs. The Funding Summit served as a practical, informative space for entrepreneurs to build funding readiness and gain clarity on where and how to seek capital. 'We understand how vital funding is to SME growth. Without access to finance, entrepreneurs struggle to succeed, which limits their ability to create jobs and contribute meaningfully to the economy,' added Bosega. A successful start and a look ahead Many attendees praised the summit for its organisation and value. 'We're setting our sights even higher for next year,' said Bosega. 'This is only the beginning of what we aim to build for the SME ecosystem.'
The Citizen
02-06-2025
- Business
- The Citizen
Report reveals there is no lack of funding for small businesses – here's the problem
Being funding-ready is just as important as funding availability. A report has revealed that there is no shortage of funding for micro, small, and medium enterprises (MSMEs) in South Africa; however, the challenge is that traditional lending models make it more difficult for these businesses to secure approval. The report, titled 'SA MSME Access to Finance Report 2025', by Finfind and African Bank, released on Thursday, supports the belief that change is needed to address the funding gap for these businesses. MSMEs in the country play a significant role as the majority of the workforce is found within the segment. These are businesses with a turnover of less than R1 million per annum. ALSO READ: Finding the right funding option for your small business Addressing funding methods The report stated that the inability of small businesses to secure funding remains a significant barrier to entrepreneurship, business expansion, and broader economic growth in the country. One of the reasons small business owners struggle to secure funding is that they are seen as high-risk without collateral. The report shows that these owners also struggle to access personal finance as most do not have a regular monthly income paid into their personal bank accounts to confirm income and affordability, and the majority have below average credit scores, this is largely due to paying business expenses first to stay afloat to the detriment of their personal credit health. ALSO READ: Here are the dangers of loan stacking for SMEs Most businesses are not funding-ready 'Many MSMEs struggle to access finance, not because funding isn't available, but because they are not funding-ready,' reads the report. Being funding-ready is just as important as funding availability. Darlene Menzies, CEO of Finfind, said there have been multiple calls for the 'Funding Readiness Voucher' programme, where business advisors and small business accountants provide funding readiness assistance to MSMEs. 'The idea was born out of the Presidential Jobs Summit catalytic project in 2018 to bolster job creation for youth and help MSMEs access finance.' Low turnover puts businesses in challenging positions The report stated that the annual turnover of small businesses puts them in a challenging position as far as credit regulation is concerned. 'The National Credit Act (NCA) classifies juristic entities with a turnover of less than R1 million per annum as consumers rather than commercial entities, creating a fundamental challenge when it comes to accessing it,' reads the report. Finfind has noticed that new players are revolutionising MSME financing through streamlined, accessible, and faster loan processing. NOW READ: Tips for SMEs: How to secure a financial boost Recommendations for MSMEs The report also gave some recommendations for MSMEs seeking funding. One of the most important recommendations is for these businesses to maintain proper financial records, establish a formal business bank account and utilise a basic accounting solution. Owners need to present a viable and well-managed operation with transparent fund utilisation and repayment plans. 'Business owners need to explore both traditional banks and alternative fintech options based on specific needs and profile.' Recommendations for funders The report stated that funders need to examine how they assess risk and develop products to meet real demand by utilising the tools, technologies, and data now available. 'It requires commitment to change.' It is also recommended that there be collaboration between traditional banks and fintech companies to leverage respective strengths. Funders need to introduce specialised micro-financing options with appropriately scaled requirements for businesses with a turnover below R1 million per annum. NOW READ: Challenges and opportunities for SMEs in 2025
