There are always opportunities if we’re willing to open ourselves up to them.
We have partnered with Youth Employment Service (YES) to provide an innovative, collaborative funding approach to drive inclusive economic growth in South Africa. YES is a joint national initiative between business, government and labour that aims to address the youth unemployment crisis in South Africa by providing a 12-month work experience to unemployed youth. YES has worked with over 1,304 South African companies to create more than 50,000 work experiences and only founded approximately 109 weeks ago. YES has seen R2.8 billion invested into communities and the economy. We knew by partnering with the YES team, we would be in a great position to effect change to SMMEs that would have not ordinarily had the chance.
It’s all coming together.
A group of talented seamstresses from Johannesburg’s Alexandra township have landed a ‘life-changing order of maternity bags from Life Healthcare, thanks to an innovative, collaborative funding approach. Working from the Textile Manufacturing Facility at the YES community hub in Alexandra and other satellite facilities within the Gauteng region, the SMME businesses are currently finalising the order of 32,000 bags. This fantastic project was only recently launched, and these SMMEs are already on track to fulfilling 100% of the order.
We’re innovating funding solutions to make it more accessible to South African SMMEs.
ProfitShare Partners was instrumental in this initiative. A facility of R600 000 allowed the project team to procure the materials needed to fulfil the order. With this capital injection, coupled with the support YES provides, these SMMEs were given an opportunity in the form of a guaranteed order.
ProfitShare Partners helps small businesses that cannot access traditional funding options by providing financing to SMMEs that have a contract with a reputable company or government department. The funding allows them to deliver on that contract and repay the facility, thereby creating a credit record in the process.
Sharing a vision.
Dr Tashmia Ismail, the CEO of YES, shared her view on how innovative financing models are critical to many SMMEs abilities to build their businesses and thrive. “A strong SMME sector is key to creating the local supply chains to reset the country’s economy. Unfortunately, not all initiatives materialise due to current financing models. Most potential entrepreneurs face multiple challenges when trying to secure funding for such community empowering initiatives. Securing traditional lenders’ funding usually comes with high-interest rates that trap SMMEs in debt, demand guarantees that SMMEs can’t make or have complicated processes.”
We want to be the change.
ProfitShare Partners prides itself as an alternative (innovative) funder. We’ve crafted our approach to helping clients in this kind of predicament. Our model doesn’t need financials, security or even a track record. It just needs an SMME that has a contract with a credible company. We help clients build up their track record, increase their profitability and sustainability. Ultimately, we help nurture them to the point that they would be as attractive to a traditional bank. We have had scores of clients increase their turnover by over 1000% in 12 months. Currently, we are compiling a database of SMMEs that were previously excluded from capital by the banking sector and moulding them into clients the banks want to lend to.
Let’s do our part to growing the South African economy again.
YES believes the key to creating jobs and reviving township economies in a post-COVID world lies in creating direct links between community businesses and large enterprises. This will provide skills training and job opportunities to unemployed youth and build local SMMEs capability to join bigger supply chains.\
We are all like pieces of a puzzle; the full picture comes together when we work together.
There are a few dependencies to drive entrepreneurship and job creation in local communities. Support from big businesses like Life Healthcare to transfer elements of their supply chains into local communities is key. Equally important are accessible funding options like the services provided by ProfitShare Partners to reignite South Africa’s small business sector.