While the continued threat of loadshedding and crime coupled with the effects of rising petrol price and interest rates have led to a fall in business confidence among SMEs, large enterprises can play a role in supporting small and medium businesses through these tough economic conditions.
This is according, to Nobesuthu Ndlovu, Director of Old Mutual SME, who says Old Mutual is committed to providing innovative solutions to SMEs and believes that large enterprises have a role to play in turning the tide.
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“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,” Ndlovu said.
“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 loadshedding is completely solved. This is costing businesses more in terms of fuel and power costs,” Ndlovu continues.
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 Covid-19 economic turmoil. However, SMEs are resilient, and many have astute management teams capable of navigating the challenges with the right support.
From research conducted by Old Mutual, it recognised 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 SME owners spent up to 70% of their time engaged in non-core activities. They wanted services that were efficient and speedy so that 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 business on the go, and addressing key challenges faced by SMEs, including ease of funding applications and efficiency.
“We understand the daily demands faced by SMEs to juggle multiple balls like servicing customers, managing revenue streams, and maintaining sufficient working capital while managing an engaged workforce. All priorities come amidst the current environmental challenges and risks such as rising costs.
“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,” says Ndlovu.
She said their industry experts looked beyond credit records to assess the real potential of each business, “Through this progressive technology platform, SMEs also have the benefit of applying to multiple funders through one application, saving them time.”
SMEgo revolutionizes how funders manage applications for funding through the online platform. The service allows for centralised collection of various funding opportunities available to SMEs.
“There is a massive appetite for funding by businesses of all sizes who want to access more customers and new markets. So, we have created 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,” Ndlovu concluded.
SMEgo is brought to you by Old Mutual Corporate Ventures, a company in the Old Mutual Group. Ts & Cs apply.