Old Mutual SMEgo – helping SMEs grow
Small and Medium Enterprises are the cornerstone of the global economy. The 2024 United Nations General Assembly designated June 27 as “Micro, Small, and Medium-sized Enterprises (MSMEs) Day” to raise awareness of their contributions toward achieving the United Nations Sustainable Development Goals (SDGs) – specifically SDG 8 (decent work and economic growth) and SDG 9 (industry, innovation, and infrastructure). According to UN statistics, SMEs account for 90% of businesses, more than 70% of employment, and 50% of GDP worldwide, thereby remaining core to the economy.
Small and Medium Enterprises (SMEs) in South Africa are vital to the economy as their operations drive job creation, innovation and economic growth. Despite their relevance, SMEs face a range of constraints that hinder their ability to thrive. To expand and sustain their businesses, entrepreneurs need to understand and overcome these challenges, employing potential solutions and effective financial management strategies.
One platform
Old Mutual SMEgo is a multifaceted platform that acts as a one-stop shop for small to medium enterprises offering Business Administrative Tools, Funding, Access to Markets and Insurance all housed in one subscription-based platform.
While there is a consensus on the macro, micro and environmental factors that influence the efficiency and growth of SMEs, these factors include access to finance, infrastructure, governance and market access. Additionally, aspects such as gross domestic product (GDP), unemployment rates, spending patterns, inflation and monetary and fiscal policy also form part of the broader financial ecosystem affecting SME operations. Understanding these obstacles enables businesses to develop strategies tailored to their specific needs and capabilities, regardless of their size.
According to a 2024 International Finance Corporation (IFC) analysis, the financing gap among MSMEs in developing countries is $5.2-trillion annually. Governance, small budgets, financial acumen, brand recognition and skills are significant challenges for small businesses scaling up.
Matching funders
Old Mutual SMEgo offers a unique proposition of an aggregation of various SME lending experts onto one platform where the system matches you to your most suitable funders that can be applied to with a single application with the average response time of 72 hours.
Further to this, the platform provides credit-scoring capabilities that allow businesses to understand their credit score and get an indication of the amount of funding their business can take.
The loans available include:
- Business Funding (Secured and Unsecured): up to R50-million
- Trade Finance: up to R20-million to fund local and trade purchases
- Asset Finance: up to R5-million to buy new assets to use in business operations
- Contract Finance: up to R20-million to fund approved customer contracts
- Purchase Order/Tender Finance: up to R10-million to fund approved customer purchase orders/tenders
- Supply Chain Finance: accessible cashflow solutions for businesses up to R10-million
- Personal Loan: up to R250 000 to finance your business.
Basic qualifying criteria include the business being a registered business in South Africa and operating for a minimum of six months with an annual turnover of R500 000 and above.
While SMEs face a range of financial challenges, leveraging appropriate financial solutions and services such as Old Mutual SMEgo can significantly alter the trajectory of SME operations. Old Mutual SMEgo has flexible subscription options to suit different budget needs and business requirements. The monthly subscription options are the Premium Plan for R99 and the Premium Plus Plan for R299.
The platform is available on www.smego.co.za. Also available on Android and ios.
Old Mutual FOR SME is offered by Old Mutual Corporate Ventures, a company in the Old Mutual Group. Terms and conditions apply.
