Access to finance and capital remains a huge challenge for many startups. Despite the challenges that entrepreneurs go through, some companies are doing something about it to address the plight of small business owners and access to markets.
One of those companies is First National Bank(FNB) through its Vumela Enterprise Development Fun, an innovative model to finance and support black-owned “missing-middle” SMEs, unlocking their potential for sustainable growth and subsequent job creation.
“Our vision for Vumela was to build a sustainable model that would strengthen South Africa one SME at a time,” said Gordon Little, FNB commercial chief executive officer.
“By providing SMEs with contextual funding and growth support relevant to their specific size and stage of business and funding need, we can catalyse growth and provide ongoing support in the scaling journey, which is not an easy one.”
Politics aside, the small and medium enterprises provide the much needed job opportunities to unemployed South Africans to alleviate poverty.
“SMEs are the engine of job creation, transformation, and reduced wealth inequality. We are exceptionally proud of the fact that through Vumela we have been able to build a model that is demonstrably sustainable and impactful in its ability to enhance this engine,” said Heather Lowe, head of SME development at FNB.
“Over the past decade we have analysed and mapped the South African funding ecosystem in detail, and we are becoming more confident in the potential of Vumela to effectively address the needs we have identified. Today, Vumela plays a critical role in alternative financing that is designed in the first instance to benefit and support investees.”
Vumela Enterprise Development Fund aims to create approximately 150 businesses, and creating over 1,000 jobs.
