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Tackling The Elephant In The SMME Sector

MIC and Stellar Credit collaborate to tackle the Elephant in the SMME sector.

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Constitutional Hill was the perfect setting to host a breakfast debate on the 31st May 2016 on how SMME’s struggle to access finance, markets and business skills. With growing pessimism from those seeking funds, the country is in dire need of stakeholders across the value chain, coming together to eradicate barriers to entry.

The breakfast session was aimed at stimulating dialogue amongst stakeholders and how efforts going forward should be tangible and sustainable. The current imbalance is indicative that efforts to eradicate the state of impoverished communities, is still lacking.

The panel included MIC CEO Mary Bomela, Stanlib Chief Economist Kevin Lings, Inyosi Enterprise & Supplier Development Portfolio Manager Evan Jones, Luvuyo Rani from Silulo and Sane Bukula from Afrox.

Mineworkers Investment Company event

Related: 9 Different Kinds Of SME Funding

The Mineworkers Investment Company (MIC) and Stellar Credit have partnered to create a solution which specifically addresses access to funding, access to markets and access to skills for black owned SMME’s. The session included the many success stories from this combined effort and reflect the heartfelt gratitude of the fund recipients.

SMME’s, as a microcosm of the global economy, play a critical role in ensuring economic transformation through job creation and the inclusion of marginalised communities in the greater economy. Due to their size, small businesses tend to be creative and implement innovative ideas that benefit communities and ensure business growth and sustainability.

“MIC seeks continued improvement in BEE status by both our own business and by companies in which we invest. We are ‘active equity partners’. This is reflected in the value we add as an investor and by active engagement in the work of transformation. This debate is a primary example of one of the ways we live our values”, says MIC CEO Mary Bomela.

The cycle of impoverishment is never ending. While we talk of efforts to educate every child and to ensure that every South African has access to basic needs, this is not our reality. People are stuck in the cycle because they face the constant struggle to access finance, markets and business skills. Startup capital and cash flow is critical to the growth and sustainability of SMMEs.

Recent reports attributed to the Minister for Small Business Development Ms. Lindiwe Zulu have outlined a proposed review of government expenditure on SMME’s with the aim of developing interventions that could assist small, macro and medium enterprises (SMMEs) to expand and become sustainable.

Growing pessimism is a real threat especially with predictions that South Africa’s economic growth is set to slow even further this year. Business opportunities will continue to be strained, especially in light of the recent Monetary Policy Committee, stating an unchanged interest rate, but alluding to potential rate hikes later this year.

“As an investment portfolio that is mandated to invest into black owned SMME’s and working with management teams to create market leading businesses, we have to have a holistic approach,” says Evan Jones, Portfolio Manager of Inyosi Enterprise and Supplier Development Investments.

Related: Attention Black Entrepreneurs: Start-Up Funding From Government Grants & Funds

“Since our launch of the Enterprise Development Investment in 2012 we have focused on lending to black owned SMME’s. With almost 400 companies that have invested into our Enterprise Development Investment, we have loaned over R120m to black owned SMME’s beneficiaries.  We are proud that our loans facilitate change for many and that our initiatives can assist in stimulate real growth in a crucial segment of the market. What is even more encouraging to see, is how the loan recipients are able to enhance their businesses and to increase their economic contribution to South Africa.”.

“The conversations will continue to happen until solutions are found. MIC will continue its active involvement in the value creation activities of its investee companies and of BEE SMME’s.” added Bomela

For more information about MIC and its current projects, visit www.mic.co.za.

Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.

Entrepreneur Today

Win A Seat At 10X-e’s 10X-ECUTION Bootcamp (Valued At R5900)

Automatically receive 20% off the Bootcamp just by entering!

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Transform chaos into systematically achieving business goals, at scale. Hosted by founder, Jason Goldberg

Enter by emailing your company name, your name and your designation to Monique: mchaitezvi@edgegrowth.com

About 10X-e:

Scaling – the Bermuda Triangle of growth – is hard, and fraught with failure. Very few of even the top 1% of ventures succeed at scaling, mostly due to poor execution, due to lack of experience scaling businesses. The 10X Program brings the ‘Science of Scale’ and seasoned Scale Up Leaders to help founders navigate the Bermuda Triangle of growth

Our team has helped some of the Continent’s most exciting high growth businesses scale up through the most treacherous parts of the journey. We tailor make multiple workshops to the specific needs of you, your team, and your business. Our workshops serve to address the most pressing challenges that your business faces, helping remove the hurdles towards 10X growth.

For more information on 10X-e, visit: https://10xe.co.za/ 

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Entrepreneur Today

Off The Beaten Track

What Tourism Month means in South Africa and how Mango Airlines is focusing on local opportunities.

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This September, being Tourism Month, we have so much to talk about in South Africa, and so many people to engage with, both domestically and abroad. We are privileged to be able to leverage a broad range of destinations – arguably world-class in nature, and they expand way beyond a beautiful mountain, and an ecosystem of game.

The vast majority of leisure tourists, however, remain attracted to the Mother City and various Safari destination, while business tourists tend to stick to hub cities for short durations of time before departing again.

“There is a golden opportunity to expand on the same offerings – while not detracting from them in any way. Our responsibility is to drive tourism into new areas, really emphasising the differentiators that are incredibly attractive to local and international tourists,” said Benediction Zubane, Head of Marketing at Mango Airlines.

“Often tourists visit one of the more well-known sites in an area, and are completely unaware of the other features and destinations close by. We’re seeing a lot of success in township tourism which goes to show how diversifying can really drive new tourism opportunities,” explained Zubane.

Related: Travel Tour Agency Sample Business Plan

According to Statistics South Africa survey on Tourism and Migration, nearly 3.5 million international travellers visited South Africa in August 2017. Top numbers were tourists from USA, UK, Germany, France and The Netherlands, with African visitors primarily coming from SADC countries. Zubane added, “This means there is vast opportunity to begin engaging with travellers in new countries across the globe. We need to become our own best ambassador, talking-up our famous and lesser known destinations, proudly showcases our uniqueness. We should also be tourists in our own country and start exploring the wonders of the Rainbow Nation.”

Mango is passionate about helping its SMEs and entrepreneurial community to successfully overcome the unique challenges facing the tourism industry: “There has never been a more opportune time for small businesses and entrepreneurs to benefit positively from tourism in South Africa, and we hope to celebrate alongside our SME community as they fly high – both literally and figuratively,” he concludes.

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FNB Receives 50 Million US-Dollars To Accelerate SME Development

First National Bank puts their focus on SME development in South Africa.

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First National Bank (FNB) has received 50 million US-dollars from the DEG – Deutsche Investitions- und Entwicklungsgesellschaft to deploy towards small and medium enterprise (SME) development in South Africa.

DEG is a development finance institution whose mission is to promote private-sector enterprises in developing and emerging-market countries as a contribution to sustainable growth and improved living conditions.

Mike Vacy-Lyle, CEO of FNB Business says: “The new line of funding contributes to our ongoing efforts to accelerate our contribution to SME development in South Africa. We believe that SMEs are key to stimulating sustainable economic growth and job creation. Our intervention in SME development is not only limited to funding, we also invest heavily to improve capacity and supplier development capabilities in small businesses.”

FNB continues to pioneer products and services that have taken the angst out of South Africa’s entrepreneurs, from providing free instant accounting services to online documents reservation services, and forming public-private partnerships to digitise the registration of businesses.

“Our message to entrepreneurs is that we remain committed to providing meaningful solutions to help them grow. We have exciting developments that will take us further in our journey, all aimed at advancing the SME agenda by taking the anguish out of doing business,” concludes Vacy-Lyle.

Related: The 10 Most Reliable Ways To Fund A Start-up

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