Small business funding more accessible
Even more great news for small business owners looking for funding this week as Standard Bank and Government sponsored Kula Enterprise announce new measures with which to make finance to small business more accessible. The credit indemnity model, largely based on the loan guarantee scheme found in the UK and US whereby the government and in this case Kula Enterprise. Basically underwrites the loan taken out by the entrepreneur. With the IDC announcing last week that it will be contributing R1bil towards a fund supporting small business, this is another major step in the right direction.
This is a major boost for entrepreneurs who may have become increasingly frustrated with the availability of loans and credit form the SA banking community. With the recent credit act making loan finance even more difficult to come buy, this agreement could not have come at a better time.
Finally Kula Enterprise is doing something useful with the more than R1bil funding they receive from the government, national and international CSI investors each year.
With much talk in the past year about strategies being put in place to make South Africans more entrepreneurial and our entrepreneurial rating in world circles sliding down the chart, its hard to ignore the simple fact that funding for start-up simply have not been accessible on reasonable terms to the thousands of would be entrepreneurs out there.
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More on this in Business day and the SABusinessHub web forum