Venture Capital Companies are funding growth in South African Small to Medium Enterprises’.
“Researchers have estimated that, in South Africa, small and medium-sized enterprises make up 91% of formalised businesses, provide employment to about 60% of the labour force and [their] total economic output accounts for roughly 34% of GDP” – The Banking Association of South Africa
These are not just small and silly numbers. There are staggering statistics which are highlighting the significance and importance of the South African SMME sector. With unemployment ever increasing, it is imperative that local entrepreneurs and business owners are supported and promoted, as they clearly form the lifeblood of our economy.
Such things though are always easier said than done, and most statistics are more easily acknowledged than acted on.
However, we need to see this as an opportunity!
South Africa arguably has one of the most robust private sectors on the continent. As host to the richest square mile in Africa, one would expect an economic trickle-down effect of sorts – however, this is not often found. It is frequently the case that growth equity is not always reaching the places, people and purposes that need it most - Entrepreneurs.
Now, to clarify, getting funding for your business is not the hardest thing to do. While funding might come in the form of loans and grants, they do not often arrive with the necessary skillsets, advisors and personnel you need to support your growth. In business, throwing money at something is not a solution - it is merely a quick-fix tactic that often leads to negative results.
Successful growth requires a great team, a robust plan, and resources – which is much more than just cash.
This is where Venture Capitalists come in. Dressed in suits instead of spandex and capes, they are business-superheroes that can provide insights, value and guidance which produces results.
The best Venture Capitalists are specialists in growth.
While access to funds continues to be important for South African SMME’s, the biggest determinant on which a company takes the lead in an industry is still down to the strength of their people, their plans and their intangible resources.
If you are looking for a Venture Capital partner that can provide you with equity funding, resources, and priceless support, contact the team at Capitis Equities today!