SME funders need to take a risk - chamber

(Shutterstock)
(Shutterstock)

Cape Town - Getting an innovative firm off the ground or expanding it requires money, but financing SMEs is a risky proposition for financiers, according to the National Small Business Chamber (NSBC).

To solve this, South Africa needs more funders, investors and banks willing to take the risk, said NSBC spokesperson Twané Gouws.

"South African entrepreneurs need a better understanding of ‘investor' and ‘funder' concerns in order to be able to provide assurances about the soundness of their proposal.

"Access to finance has been singled out as the major challenge impeding the survival and growth of start-up and seasoned SMEs.

"The ability of SMEs to grow depends highly on their potential to invest in restructuring and innovation. All these investments require capital," she said.

The Access to Finance Indaba will take place during NSBC's My Business Expo in Durban and is aimed at unravelling the complexity of accessing finance for small businesses, said Gouws.

"It is designed to encourage SMEs to think about different strategies of fundraising for their business."

“There are a host of learning opportunities to be had at the My Business Expo, said NSBC CEO Mike Anderson.

* The My Business Expo will take place at the Durban Exhibition Centre in Durban on June 4 2015 and is free to attend, provided you pre-register at www.mybizexpo.co.za.

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