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Your money can benefit South African small businesses

* 15 October 2021 8:06 AM
Tags:
National Small Medium and Micro Enterprises SMME
Stanlib Kevin Lings
africa economy
Kevin Lings Chief Economist at Stanlib
stanlib
SMMEs
micro-enterprises
Sponsored Content
government subsidies
African small and medium businesses
Haroon Bhorat
Your money can do more

Investing in small businesses instead of big companies might be a worthy gamble, but it’s the initial hurdles that are often too much for micro enterprises to overcome.

Whether you’re an investor aiming for more certainty, more return or more impact, STANLIB has a fund solution for you.​ The STANLIB Your Money Can Do More podcast series hosted by Bongani Bingwa and STANLIB’s Chief Economist Kevin Lings features experts who will help potential investors navigate and plan for tomorrow, today.

In this episode, Bongani and Kevin chat to Haroon Bhorat, Professor of Economics at the University of Cape Town, about the effect that Small, Medium and Micro Enterprises (SMMEs) could have on the economy and how investors can help give these businesses the push they need.

Listen to the audio:

South Africa’s economy is a tale of two worlds: The mighty well-established corporations versus the brand new businesses who are fighting for a place to swim in this big pool of enterprises. SMMEs radiate potential and can be key drivers in the economy, but the lack of financial support to fall back on often leads to an early decline for these businesses, according to Lings.

If you’ve got a low growth environment and that low growth persists for a number of years then every single year is a challenge and for small businesses, they just don't have the financial resources (to go from one year to the next).

Kevin Lings, Chief Economist at STANLIB

Apart from competing with bigger companies, these small businesses have to take on many essential costs such as electricity, security and transport, which can be challenging for an enterprise that has just started out.

Professor Haroon Bhorat says that micro-enterprises need an enabling environment where the procedures for licensing and permits are made easier. He also mentions how the public sector can play a role in providing better market access for medium enterprises, and that government subsidies could have a big impact on the success of these businesses.

The cost of a generator is a much bigger deal for a medium enterprise than a large [enterprise]. Things such as security is a massive challenge for a number of these businesses.

Haroon Bhorat, Professor of Economics at University of Cape Town

For me, it’s thinking about how local government [and] local government regulations can be reorientated towards opening up areas for greater participation of survivalists and micro-enterprises.

Haroon Bhorat, Professor of Economics at University of Cape Town

Institutional investors can also play a part in building a vibrant, growing South African economy with STANLIB’s Khanyisa Impact Investment Fund. A fund where there is no trade-off between achieving compelling returns and making a positive and measurable impact on the economy. It aims to reduce poverty and inequality and increase access to basic goods and services.

To find out more about how STANLIB is helping and preparing their clients’ investments for the future, visit www.STANLIB.com/more now!




* 15 October 2021 8:06 AM
Tags:
National Small Medium and Micro Enterprises SMME
Stanlib Kevin Lings
africa economy
Kevin Lings Chief Economist at Stanlib
stanlib
SMMEs
micro-enterprises
Sponsored Content
government subsidies
African small and medium businesses
Haroon Bhorat
Your money can do more

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