Small and medium-sized enterprises (SMEs) are estimated to contribute 40% towards South Africa’s Gross Domestic Product (GDP), making them vital in growing the country's economy.
This is why the Johannesburg Stock Exchange (JSE) has committed to supporting SME growth through a series of initiatives that provide mentorship, training and capital-raising opportunities.
The JSE’s Head of SME Development, Cleola Kunene, says the exchange is committed to creating meaningful partnerships in order to make significant change and sustainable growth in the SME sector.
“We have a wealth of experience and networks to tap into, to help SMEs,” Kunene says.
Accelerated success
The JSE runs an Enterprise Acceleration Programme which provides medium enterprises with custom-support including an ecosystem of mentors, advisors, educational enablers and networks that ultimately will fast track growth and enable the companies to attract the right level of funding.
The 12 companies that were part of the JSE Enterprise Acceleration Programme in 2023 saw an average increase in revenue of 22% and were able to raise an astounding R1.02 billion in capital injection.
“As the JSE, we've played a critical role through the acceleration programme to help companies grow internationally and we've seen most of the companies grow into new markets with an Over 22% on average growth, Kunene says.
SMEs play a key role in the country’s economy by driving employment, and according to SA’s National Development Plan, SME’s are expected to create 90% of 11 million new jobs.
One company, Lebatho Exploration, went from three employees to 108.
Other programmes
In 2023, the JSE collaborated with the Western Cape Government Department of Economic Development and Tourism (DEDAT) to launch a multi-year Small to Medium Enterprises (SME) development programme aimed at stimulating the growth of the SME sector in the province. This culminated in a Capital Matching event which was held in November last year where SMEs in the Tourism & Manufacturing, Agriculture & Agri Processing, Green Economy, Real Estate, Service and Technology sectors, engaged with prospective funders.
In speed pitching sessions, over 80 SMEs offered an overview of their business prospects to funders, in an effort to secure funding for their businesses.
“The JSE together with the WC DEDAT are helping companies understand the funding landscape and become funding-ready; and then of course, helping and supporting them by being matched to the right type of funding providers,” Kunene says.
This year, the SME Capital Matching Initiative will be expanding its footprint beyond the Western Cape and will be rolled out in the Free State and the Northen Cape.
Growing your SME
Kunene says the South African SME landscape is robust, with a large scope for growth and success.
“A company needs to do their homework. There are so many opportunities for development in South Africa, with many companies providing solutions,” she says.
Click HERE to get involved in these SME Capital Matching Initiative and HERE to learn more about the JSE Enterprise Acceleration Programme.
This post was sponsored by the JSE and produced by Studio24.