A Guide To Funding For Women’s Business

According to SME South Africa, 47% of South African small business owners are women. That’s a 6% increase in the female to male entrepreneur ratio. We know that SMEs are a major driver of job creation, so on paper, the future certainly looks bright. That’s until you factor in that 70% of new businesses fail within the first 18 months.

It’s clear that access to funding for women’s business remains a big challenge. So what can be done to support female business owners in South Africa? We’ve put together this handy guide to help you understand how funding can be used to help your business grow.

There is nothing more satisfying than running your own business. But being your own boss does come with its own challenges.

The main business challenges faced by SMEs are:

Access to finance and credit
Cash flow management
Marketing
Red-tape
Access to support
High startup failure rate
Access to markets
Skills shortage

Business funding exists to help deal with some of these challenges. As an entrepreneur and business owner, you need to understand the unique challenges that face your business and determine what kind of business funding can help you overcome them.

You need to know how to plan, budget, invest and have a working understanding of the financial health of your business. It’s also important to know that applying for business finance is not an indication that your business is struggling. Most, if not all, businesses that have been operating for some time need capital in order to scale.

There is a common misconception that only new businesses require funding. The reality is that business funding can be applied for at any stage in a business’s lifespan and can be used to meet many different needs.

Examples of ways you can use your business funding include:

Expansion of your premises
Hiring additional staff
Equipment purchase
Marketing
Buying Inventory
Managing Cash Flow

What you do with your business funding is ultimately up to you. As a business owner, it’s your job to ensure you know exactly what you need funding for and how to use it to achieve your business objectives, whether it’s growth, purchasing seasonal inventory, or buying the equipment needed to scale.

We’ve handpicked some inside secrets from successful female SMEs to help you along the path to success:

Tell your brand story in your marketing – it will make customers love what you do
Define your values and let them drive your business activities
Connect and engage with your customers and they will return for more
Get tech-savvy and embrace technology
Be a disruptor and show the world what makes you different
Network as much as possible and share your success story
Never sell yourself short – be proud of what you have achieved
Pay it forward and mentor other women business owners like yourself

If you have any questions, get in touch with us today and we’ll help you find the business funding solution that’s the right fit for your business.