South African entrepreneurs play a vital role in the success of our economy, but 70 – 80% fail to make it due to financial pressures.
According to forbes.com, ‘entrepreneurs often fail because they cannot raise the right kind of funding’ 2. For the fourth year running, The Western Cape Funding Fair had all the answers in May.
Passionate about empowering entrepreneurs and small businesses to beat the statistics, Deloitte Western Cape and the Department of Economic Development and Tourism teamed up again to host The Western Cape Funding Fair 2018 on the 8th May 2018, at the Cape Town International Convention Centre.
Taking action to turn the tide of failure and abandonment
After much research across South Africa, moneyweb.co.za found that ’70 – 80%’ of small businesses and entrepreneurs in South Africa fail ‘within five years’. Deloitte Western Cape and the Department of Economic Development and Tourism are fired up to stem the flow of failure.
According to forbes.com entrepreneurs are failed by traditional financial institutions and instead, are left to go it alone, meaning that they end up using ‘too much of their own money and way too much from friends and family’.
Passionate that small businesses and entrepreneurs receive better financial support, both a conference and an exhibition, The Western Cape Funding Fair aims each year to build ‘awareness and access to multiple funding organisations’. Centered around ‘topical issues which holistically affect access to finance’, its success in changing the game speaks for itself.
Deloitte.com says that ‘since 2015 the Funding Fair has attracted over 1,800 businesses seeking funding’. ‘In excess of R12million in funding has been allocated by investors and a further R37 million in value of deals pending.’ ‘The rate of deal flow at the Funding Fair is higher than normal at five in 20 versus the general industry standard of one in 10 businesses being funded.
What’s good for the goose..
News that the funding fair is investing in South African enterprise, empowering, educating and funding our entrepreneurs, is good news for more than just the 1,800 plus individuals it has helped already. Successful South African entrepreneurs and small businesses spells economic success for South Africa’s developing economy.
For South Africa’s economic growth to continue, it needs its visionaries, risk-takers, way-makers. Inspiring female entrepreneurs such as former Miss South Africa Joan Madibeng prove that reaching a business dream is possible and such entrepreneurs should be supported on their path to her level of success.
Without a thriving crop of home-grown entrepreneurs and small businesses, our economy cannot thrive. We need them to stimulate increases in employment, revenue, expansion, innovation. They need our investment and funding.
Bridging the financial gap
It is well- documented that entrepreneurs, diligent lone-mavericks, get hit the hardest, with many falling victim to the financial challenges that every business faces. Working independently, and most often starting with no financial surplus, managing cash-flow is a crucial component of entrepreneurial success. The ability to generate and maintain a consistent and regular flow of cash and profit back into the business, at a steady rate, is a challenge for any entrepreneur, and indeed, all businesses.
Minister Winde reports that the Funding Fair is one of several key initiatives that the Department of Economic Development and Tourism has put in place to bolster businesses in the Western Cape’. With the current mistrust between many of our traditional financial institutions and the public, it is heartening so see two big players on South Africa’s financial landscape, taking such positive action to improve financial literacy and funding opportunities in a corner of the industry where it is so needed.
Expect tickets for next year’s fair to sell-out quickly.
Are you struggling to keep things afloat? Have you found any ways to keep the cash flowing? We would be really interested to hear your story!
You can read more about lifestyles in South Africa over on Cape Town Insider as well as articles on Lifestyles and Things To Do.
