My presentation will focus on the following four main topics: ABSA Financial Product: Joint SMME Fund Challenges we face in funding SMMEs Solutions.

• My presentation will focus on the following four main topics:

•ABSA Financial Product: Joint SMME Fund

•Challenges we face in funding SMMEs

•Solutions for small business

•Enterprise Development Centre / Chamber SMME Desks

INTRODUCTION

• Joint Venture between Absa and Department of Economic Development and Tourism- KZN

• Finance between R10 000 and R1 000 000

• Main focus on bridging finance: Tenders

• Main requirements: Letter of award and business profile

1. JOINT SMME FUND

• Non SA Citizens• Individuals under the age of 21• Money raising• Enrichment• All trust, Public Companies, All Section 21 Companies• Mining and oil exploration, • Commercial property finance • Vehicle finance• No split Banking is allowed• Multiple ownerships in other businesses

1.1.EXCLUSSIONS

• Comprehensive Business Plan/Profile• Lease Agreements• Financial Statements• CV• Identity Document• Marital Certificate• Assets and Liabilities• Financial Statements (Expansion).• Cash Flow Projections• Bank Statements• Buy/Sell or Purchase Agreement• Fica Documents• Proof of own contribution

1.2.KEY REQUIREMENTS

• ITC- No arrangements have been made with creditors• Multiple ownerships in other businesses• Documents not submitted in time• Quality of the business plan• Lack of skills in the type business one wants to start• Lack of understanding business financial model• Inaccurate cash flow statements• Clients present their applications late• Clients have arrangement with third parties to do execute tenders

2.CHALLENGES IN FUNDING SMMEs

Why Small Businesses Fail!

Financial management ,

records & management

competence =

64%

Sales & Marketing =

11%

73% Failure is from these

factors

Financial management ,

records & management

competence =

64%

Financial management ,

records & management

competence =

62%

• How Absa Can Help You Grow Your Business

We are dedicated to helping you grow and succeed in your business

Our Business Essentials and Business Advantage Packages provide the key tools and services that most successful business customers use.

The Business Essentials and Business Advantage Packages are perfect for those customers who wish to increase their chances of business survival, success and growth

QuickBooks have invoice, debtors and creditors journal, monthly management accounts, income statement, cash flow statement, balance sheet etc.

3. SOLUTION FOR SMALL BUSINESS

3.1. BUSINESS ADVANTAGE

Business Plan Pro Marketing Plan Pro MindLeaders QuickBooks Pro Succeed Magazine Networking Opportunities

Business Plan Pro Marketing Plan Pro Mind Leaders QuickBooks Pro

Business Essentials

Business Advantage R290 (inc VAT) per month

R 185 (inc VAT) per month

• Information Dissemination

• Business plan assessment

• Training workshops

• Advisory services

• Business registrations

• Semi-incubator: Consulting, Internet, printing service

• Maintaining stakeholder relations

OTHER BANK SOLUTIONS FOR SMME4. ENTERPRISE DEVELOPMENT CENTRES

1. Learnership (150 Participants)

12 Months Programme/ R1500.00 Stipend

2. Enterprise Growth Programme(24 Participants)- KPMG

Business Simulation Training / Quickbooks Training

Sales and Marketing / Financial Intelligence/

Banking Principles

3. Sector specific interventions: Training and Networking

4. Normal Banking Products: Bizstart and Cheque Account

These products are backed by Notify Me, cellphone banking and Internet Banking

4.1. OTHER SOLUTIONS FOR SMME IN OUR EDC/BRANCHES

• Durban Chamber of Commerce and Industry

190 Stelwart Simelane Street

Durban

4001

Gugu Ngcobo: 031-335 1000

[email protected]

• Pietermaritzburg Chamber of Commerce and Industry

Chamber House

Royal Showground

Pietermaritzburg

3201

Mandisa Jostrey: 033-345 2747

[email protected]

4.2.CHAMBER: SMME DESKS

• Chris Ngcobo• Manager • Enterprise Development Centre• 127 Johannes Nkosi Street/ Alice Street- Seda Centre• Durban• 4001• 031 309 5330/1• Email Address: [email protected]

OR

• Rem Biyela• Manager • Enterprise Development Centre• 204 Peter Kerchhoff Street• Pietermaritzburg• 3201• 033-264 3860• Email Address: [email protected]

CONTACT DETAILS

CONSTRUCTIVE ENGAGEMENT

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SMALL BUSINESS IS BIG BUSINESS