While entrepreneurship is nothing new for women, it’s clear that South African women are still at a disadvantage when it comes to securing financial assistance. However, knowing what financial assistance and women empowerment funds exist can turn the tide.
The struggle to secure financing for female entrepreneurs in South Africa
Despite women making up half the South African population, only 38% of SMEs are women-led. Balancing the scales and diversifying is crucial in advancing South Africa’s economic growth. Business Media Mags found that women-led businesses created close to one million jobs between 2018 and 2022 and contributed R175 billion a year to the economy, but that made little difference when it came to accessing capital.
Knowing how to get business funding in South Africa is crucial, and financial assistance comes in many different forms:
- Asset-based financing
- Business incubators
- Angel investors
- SME funds
- Government funds
- Revolving Capital Facilities
Different financing options have pros and cons and depend on whether your business is a start-up or well-established, the nature of your operations, the amount needed, and your assets. When applying for funding, financiers often ask for several documents to assess your application, including:
- A detailed business plan
- Financial statements and projections
- Personal and business credit history
- Collateral or security for a loan
- Proof of ownership
- Information on your management team
- Market research and analysis
Understanding the specific requirements for each document will go a long way in knowing how to secure business funding.
What financial support is available for female entrepreneurs in South Africa?
Women’s empowerment programmes are on the rise, which means that more funding and business loans specifically tailored to women in business are now available. Government funding for women’s businesses in South Africa is one option.
Other options include business support from the private sector:
1. Lula’s SME Funding
Lula’s funding solutions are built on saying “yes” more to businesses looking to grow, including women’s entrepreneurship. The SA-based B2B fintech offers fast access to business funding through its Capital Advance and Revolving Capital Facility, each allowing women in business to seize business opportunities and overcome cash flow challenges.
2. Women Empowerment Fund (WEF)
The NEF Women Empowerment Fund focuses explicitly on black women’s empowerment, offering between R250,000 and R75 million to female business owners across different industries. Funding options for female entrepreneurs make a great contribution by enabling a new generation of black-owned, women-led SMEs.
3. Isivande Women’s Fund (IWF)
The Isivande Women’s Fund propels women’s economic empowerment by offering responsive finance solutions and funding for women’s businesses in South Africa. The funding helps start-ups and SMEs looking to expand, franchise their operations, or access bridge financing. Women-led businesses can unlock funding from R30,000 to R2 million.
4. AWIEF Growth Accelerator
As an award-winning women empowerment fund, the AWIEF Growth Accelerator champions women’s entrepreneurship through skill-building, mentoring networks, and access to funding. They regularly announce different accelerator programmes across Africa. Taking a holistic approach, each programme provides growth strategy training on top of access to finance.
5. Cartier Women’s Initiative (CWI)
The Cartier Women’s Initiative has been running since 2005. It focuses on uplifting women’s entrepreneurship through funded awards. Managed by Beneficial Returns, this programme operates globally, meaning it is open to grant funding for women’s businesses in South Africa.
6. Manufacturing Support Programme (MSP)
Knowing how to finance heavy equipment is a major factor in controlling cash flow for manufacturing companies. One way to do this is with the Department of Trade and Industry‘s Manufacturing Support Programme. The MSP offers a reimbursable grant for projects that are 51% owned and managed by women, youth, or persons with disabilities. The objective is to hone operational efficiencies and expand on new manufacturing projects.
This funding helps women gain an edge in a predominantly male-dominated field. Statista shows that while there are roughly 30 million women in South Africa, less than 500,000 work in the manufacturing industry.
7. The Tourism Transformation Fund (TTF)
The tourism sector leads in gender equality, with a South African Tourism survey finding women make up 51% of the workforce and 45% of ownership. To further nurture this, The Tourism Transformation Fund, created by the Department of Tourism in collaboration with the National Empowerment Fund (NEF), aims to foster economic growth for black entrepreneurs. This fund hopes to create a new generation of tourism enterprises and is primed for black women’s empowerment.
Financial boosts for female innovators: How Lula supports women-owned businesses
An equal playing field in business funding is better for everyone. Not only is gender inequality still a major ongoing issue, but giving female-owned businesses the support they need helps to grow the South African economy. Empower your business, empower yourself. Get working capital through Lula’s Revolving Capital Facility to build your business.
