Fin24

SMME financing bodies to merge

2011-10-27 11:03

Cape Town - The cabinet has approved the merger of several small, medium and micro enterprise (SMME) finance entities.

These are Khula, the SA Micro Enterprise Apex Fund and the Industrial Development Corporation's (IDC's) small business activities, government spokesperson Jimmy Manyi told a briefing on Thursday following cabinet's regular Wednesday meeting.

The merger is subject to approval of the business case by the National Treasury and the public service and administration department, he said.

In line with the new growth path, access to finance for small business is an enabler for creating and sustaining enterprise and jobs.

The current fragmented approach to delivery of finance to small business has resulted in higher overhead costs, limited reach and insufficient impact.

The merger would fall under the auspices of the IDC where it would be better resourced and capacitated.

It would also create the framework for improved support for SMMEs, Manyi said.

 

Comments
  • Monika - 2011-10-27 11:38

    These institutions are not interested in helping white smme's.

      Peopleplus - 2011-10-27 12:45

      Monika you are corect. We approached them for finance months ago and still waiting for a response. We eventually developed our payroll and HR technology from our own pockets and launched it free to SME business as a freemium model. You waste time trying to get funding.

      roboman1 - 2011-10-27 13:16

      That is true

      Ogre - 2011-10-27 14:17

      I can confirm this. At very turn was told that the funding was only available for the "previously disadvantaged". This is quite ironic as this is the segment of the population that derives the most benefit from my products as well as in terms of job creation. Talk about cutting off your nose to spite your face.

      Garreth - 2011-10-27 17:08

      Why not. On what basis is this. They are not allowed to discriminate. It is unconstitutional and you're creating jobs. You go with your plan and all your tools and ask for help. They have to give you a very good reason or get a person of color as a partner and try then.

  • corp.cash - 2011-10-27 11:48

    We need a SME bank in South Africa with experienced, honest, hard working management and product that a tailored made to suit SMEs.

  • khwezi.mngoma - 2011-10-27 12:56

    Yip, we need a dedicated SMME Bank.

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