AT LEAST 73 funding institutions, registered with the National Credit Regulator, were relatively,unknown, UCSbusiness managing director Mlungisi Sanyaka said at the1st Annual Business Funding Expo at the Thobi Kula Indoor Sports Complex recently.
These institutions, he said, included government entities, banks, private companies and online structures.UCSbusiness is a company based in Bloemfontein with Sanyanka saying they had chosen to visit Komani as there was a lack of business expos in the area. “In places like Johannesburg, Cape Town and Durban exhibitions happen on a weekly basis. We realised one of the biggest reasons why small businesses fail is because there is in no access to funding.”
Two months ago statistician-general Pali Lehohla reported that unemployment had gone up and the Eastern Cape was one of the least performing economies with a high rate of unemployment.
“We realise that the government can not employ everyone. Research reveals that developed economies in the world were mostly built on the back of small businesses. This shows that small businesses have a great role to play in addressing unemployment and in ensuring that economic activity is improved.”
Sanyaka said the company had conducted studies on why small businesses failed with access to funding one of the most critical elements in ensuring success.
“There is a mismatch of expectations. A person will go to Industrial Development Cooperation (IDC) to ask for land even though it is not a part of its mandate.”
Government entities which had strict funding criteria made it difficult for small businesses to get help aid.