By Africa.com | Created at 2024-11-21 17:21:31 | Updated at 2024-11-22 01:10:02
8 hours ago
Standard Bank is accelerating its support for township entrepreneurs to reduce the high failure rate of South Africa’s small, micro and medium-sized enterprises (SMMEs), building on its ongoing commitment to empowering local businesses and fostering sustainable growth. The bank aims to reverse the trend that sees a staggeringly high number of small businesses failing within their first five years.
According to the 2023/2024 Global Entrepreneurship Monitor (GEM) report, two in five adults in South Africa know someone who has recently started a business. Two in three either see excellent opportunities to do the same or are considering starting their own business. The Bank will create engagement platforms with local SMEs, where they will provide insights, tools as well as networking opportunities that can enable businesses in either the starting, managing, or growing phases.
“SMMEs are a vital part of South Africa’s economy, but they often lack access to the resources they need to survive,” says Oscar Siziba, Head of Coverage for Business Banking in Standard Bank South Africa. “We are committed to improving the sustainability of small businesses in areas where millions of South African citizens reside.”
“We are not just offering theoretical knowledge,” Siziba explains. “Our Relationship Managers will provide hands-on guidance based on real-world experience. This is about giving township entrepreneurs the practical tools they need to build sustainable businesses.”
Participants will also learn more about the Bank’s Enterprise and Supplier (ESD) development programmes, aimed at enabling township businesses transform their operations through gaining greater access to markets, development services, and the crucial funding they need to grow. They will also engage with Standard Bank’s expert Relationship Managers who will deliver personalised service that is grounded in a deep understanding of these businesses.
The programme will launch in Gauteng, KwaZulu-Natal, and the Western Cape, before expending into the rest of the country in 2025. Expert-led sessions will tackle critical challenges through:
- Foundational knowledge: Equip entrepreneurs with essential business skills and financial literacy to start strong.
- Banking solutions: Introduce tailored financial products and services to support business operations and growth.
- Beyond banking: Introduce ESD concepts and programmes allowing the attendees the ability to learn about ESD and its value propositions, call to action to enable access and participation in the programmes.
Each session will be delivered over a 2- to 4-hour period, designed to accommodate the busy schedules of entrepreneurs. The Bank expects to train over 150 business owners in the first three engagements, with plans to expand the programme beyond the three provinces, going into 2025. Standard Bank’s initiative comes at a crucial time, as research highlights how limited access to financial literacy, poor business management skills, and barriers to formal banking systems continue to hamper township business growth.
