New partnership to grow SMMEs

Existing and aspiring entrepreneurs received a positive boost following today's announcement of the partnership between Seda, the Masisizane Fund and Old Mutual Foundation, which aims to provide small, medium and micro enterprises (SMMEs) with non-financial and critical financial support.

The partnership is a timely intervention that will alleviate the plight of enterprising unemployed people who want to start businesses. According to a 2008 Department of Trade and Industry survey, at least 65% of jobs created in the South African economy can be attributed to the SMME sector.

The partnership specifically focuses o­n stimulating job creation and ensuring sustainability within the small, medium and micro enterprise sector by promoting, supporting and developing SMMEs as well as connecting these enterprises to critical financial support.

Each partner contributes a different element of expert support to the initiative. Non-financial support services will be provided by Seda, which offers entrepreneurs access to information, advice, mentoring, guidance and tailored training programmes through its national network of 42 branches.

In addition, aspiring and existing business owners can consult directly o­n business concepts with the business advisors at any o­ne of Seda’s branches.

“We’re very excited about this new partnership which will greatly assist in supporting SMMEs to ensure future sustainability and growth. The financial assistance provided by the Old Mutual Foundation and Masisizane Fund perfectly complements the comprehensive range of support services offered by Seda.

"This partnership reflects our mission to develop and promote small enterprises in co-ordination with other role players, and furthers our vision of offering a holistic support package to SMMEs to enhance their competitiveness,” says Seda’s Chief Executive Officer, Hlonela Lupuwana.

Financial aid will be offered in the form of grant funding and soft loans, provided by the Masisizane Fund and Old Mutual Foundation respectively.

“This partnership means that aspiring entrepreneurs, preferably women and youth, can approach a local Seda branch and be assisted with business plan writing and o­ngoing mentorship using criteria provided by Masisizane and the Old Mutual Foundation. This will improve their chances of getting access to the funds they need to turn their dreams into reality,” says Charmaine Groves, CEO of the Masisizane Fund.

Groves explains that Masisizane’s overarching objective is job creation through sustainable enterprise development in the second economy, and Seda’s is to provide the tools and know-how for SMMEs, both start-ups and existing businesses.

“Entrepreneurs should enjoy increased success when applying to institutions like Masisizane for funding and other business support.The process of evaluating applications will be shortened, and the long term sustainability of the enterprises improved through the valuable mentorship provided by Seda,” says Groves.

Lupuwana adds that the partnership will go a long way to addressing o­ne of the major current challenges facing SMMEs, namely access to funding.

“Access to services, especially finance, has been a key challenge to aspiring and thriving small businesses. It is beneficial for Seda to form this joint initiative in helping to alleviate this shortcoming in the sector,” Lupuwana concludes.