Agency targets small businesses to get off ground

Individuals with credit issues helped

FOR many entrepreneurs wanting to start a business the biggest hurdle is always the capital to get their businesses off the ground, as their bad credit record might result in banks refusing to lend them money.

But the Small Enterprise Finance Agency (Sefa), a government aligned financial services provider, hopes to close that gap as it specifically funds upcoming small businesses, mostly owned by black women.

The Sefa also has “a soft spot” for cooperatives, small businesses headed by the youth, township enterprises, rural businesses and those owned by disabled entrepreneurs.

Yesterday, the Sefa took its roadshow to Mdantsane, where they workshopped local small businesses on how to obtain financing from the agency.

More than 50 small business owners, mostly women, gathered at Mdantsane’s NU 1 Community Hall where they were taken through processes they should follow in order to solicit funding to bolster their emerging businesses.

Sefa Eastern Cape regional head, Mihlali Simokonda told the business owners that they should approach their offices for financial assistance.

“In the main, what we do is to assist in funding small businesses and cooperatives that are mostly neglected by big banks, including those who might be blacklisted by such big lenders.

“Most of those we focus on are those regarded as high risk borrowers because we have high tolerance for risk in exchange for high development impact,” Simokonda said.

Sefa is a wholly owned agency of the Industrial Development Corporation and falls under the Department of Small Business Development.

Simokonda said the agency did not fund businesses that manufacture and sell ammunition, those in the tobacco and alcohol business or those in the gambling and sex trade.

Simokonda said her agency “was entrusted to forge successful partnerships that contribute to great enterprises”.

Sefa spokeswoman Nothemba Gqiba said the agency prioritises businesses that also creates jobs for others. She commended female entrepreneurs who attended, saying it was encouraging to see them taking their businesses seriously.

“I have been in many workshops across the country, but I have never been in one where the majority were women in business.

“It is very encouraging as we need to get to the bigger scheme of things as women. Seeing most of you here shows me that women are taking their rightful place in the business space,” Gqiba said.

She urged female entrepreneurs to stop focusing on traditional small businesses, but instead “push ourselves for bigger things as we are equal to men in business in all respects”.

One of the attendees, Sonwabo Sizani, said yesterday’s session “was eye opening” and had given hope to small businesses that were “in need of serious financing but were sidelined by big banks for various reasons”.

Another business owner, Nozuko Ngcebetsha said she had given up hope of getting any finance from big banks due to her bad credit record.

“However, now I am optimistic that Sefa will help me as they sound like they are here for people like myself,” she said.

Sefa was formed in 2012 and has so far assisted thousands of small businesses and cooperatives to start up.