Small businesses are routinely cited as the answer to South Africa’s stubborn 26.7% unemployment rate. But startups, micro-enterprises, and small and medium businesses often struggle when faced with the “ f-word ” — funding.
A report released on Tuesday by Finfind, an online research and development programme that links small businesses and funders, highlighted that, even though “globally, over 95% of [small] enterprises employ 60% to 70% of the working population”, the sector remains underserved.
The report showed that finance for the sector in South Africa has remained low since 2008, yet funding for large business has increased.
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