SME funding in reach despite tough trading conditions

The continued threats of load-shedding and crime, coupled with the effects of rising petrol prices and interest rates, have led to a fall in business confidence among small and medium enterprises (SMEs). However, large enterprises can play a role in supporting them through these tough economic conditions.

That’s according to Nobesuthu Ndlovu, director of Old Mutual SME, who says Old Mutual is committed to providing innovative solutions to SMEs.

“We can’t say that we’re surprised at the fall in confidence. It makes sense when you consider the economic shocks that have continued over the past few months,” she says. 

“Consider the record petrol prices in addition to the rolling blackouts that don’t seem to have an end in sight. The most optimistic estimates say that it will take at least two years before load-shedding is completely solved. This is costing businesses more in terms of fuel and power costs.” 

According to Ndlovu, all of these challenges come on the back of a tough year with global upheaval and the slow ascent out of the economic turmoil resulting from the Covid-19 pandemic. However, SMEs are resilient, and many have astute management teams capable of navigating the challenges with the right support.

Research conducted by Old Mutual identified that access to funding was the number one challenge for SMEs. However, the conventional financing model was inappropriate for this market and that limited access to low- and medium-cost funding was constraining business growth. 

Other areas of concern were access to markets as SME owners remained under pressure to constantly drive the sales pipeline and the fact that they spent up to 70% of their time engaged in noncore activities. SME owners wanted services that were efficient and speedy, so they can concentrate on core business activities.

On the back of these findings, Old Mutual designed SMEgo, a digital one-stop solution that supports SME owners in running and growing their businesses on the go. It also addresses key challenges faced by SMEs, including ease and efficiency of funding applications.

“We understand the daily demands faced by SMEs. [They have] to juggle multiple balls, like servicing customers, managing revenue streams and maintaining sufficient working capital, while managing an engaged workforce. All priorities come amid the current environmental challenges and risks such as rising costs,” says Ndlovu.

“SMEgo, therefore, is a convenient source of finance to support SMEs in their need to access funding for operations and growth. This innovative platform offers a holistic solution to address SME challenges more seamlessly.”

Ndlovu says Old Mutual’s industry experts looked beyond credit records to assess the real potential of each business. 

SMEgo allows for centralised collection of various funding opportunities available to SMEs  “Through this progressive technology platform, SMEs also have the benefit of applying to multiple funders through one application, saving them time.” It also revolutionises how funders manage applications for funding through the online platform. 

“There is a huge appetite for funding by businesses of all sizes who want to access more customers and new markets. [SMEgo is] a 24/7 platform that will enhance their operations. We want to ensure that more businesses receive the support they need to achieve their growth targets,”  says Ndlovu.

For more information about SMEgo, visit the Old Mutual website.

This article was paid for by Old Mutual.

_{SMEgo is brought to you by Old Mutual Corporate Ventures, a company in the Old Mutual Group. Ts & Cs apply.}