Cape Town - Business/Partners on Wednesday announced the launch of a R250 million Women in Business Fund at its annual women’s month seminar.
The specialist finance company for small and medium enterprises in South Africa and selected African countries said the fund would offer financing of between R500 000 and R50 million per investment over a five-year financing period. All commercially viable businesses that are at least 50 percent female-owned and with female owners active in the business will be considered for financing.
Business/Partners managing director Nazeem Martin said 35-45 percent of all new business concluded over the past seven years had been with women entrepreneurs, but the company planned to increase that to 50 percent.
“The Women in Business Fund will play a key role enabling Business/Partners to reach this goal and achieve an even split between male and female business owners being financed and on our book.”
Martin added the number of women who succeeded in entrepreneurship was still disappointing, adding: “South Africa is no exception to the world-wide phenomenon that women, who represent more than half of the population, are still in the minority when it comes to entrepreneurship.”
Martin said international research showed that when it came to what he called “power entrepreneurship” – high growth and very successful businesses – female entrepreneurs are even more of a minority.
“In the US, for example, only one in five businesses with a turnover of more than $1 million are owned by women. In Europe, only 8.3 percent of patents awarded are awarded to female-owned businesses,” he said.
“There is little to suggest that the picture is any less skewed in South Africa. If anything, the situation has probably deteriorated recently given the latest Global Entrepreneurship Monitor showing that only 6.2 percent of South African adult women are involved in entrepreneurship, down from nine percent a year earlier.”
The Business Partners Women in Business Fund will address some specific hurdles that hinder women from starting their own businesses, such as deep-seated cultural legacies and family responsibilities.
A statement from the company said, because women are generally still disadvantaged in building up an asset base, which they could pledge as equity and/or collateral, the fund requires no minimum own contribution when applying for finance.
Martin added all female entrepreneurs financed through the Women in Business Fund would be supported with additional value-added services, such as dedicated industry-specific mentors and a technical assistance grant of up to R25 000. They would also have access to information via an internet site and networking opportunities, such as workshops.
“Women share a unique approach to business, which is why we seek to facilitate networking and knowledge sharing opportunities between female entrepreneurs, so that they can learn from their peers and continue to play their rightful role of generating wealth, growing our economy and creating jobs for many,” said Martin.
ANA