Author: Omega Fumba

The massive funding gap faced by South African entrepreneurs has led to a demand for alternative funding solutions. Events like the SME South Africa finding summit aim to not only help entrepreneurs understand what they need to qualify for funding, but also to expose them to other forms of funding.

Without exposure to alternative funders, SMEs are constantly running after traditional funders, such as banks. One of the alternative funders that was present at the SME South Africa Funding Summit is Flow48. We got to visit the Flow48 exhibition stall to gain insight into who they are and how they serve the SME market.

Additionally, we’ll dive into the importance of alternative funding and how SMEs can strategically use alternative funders for business growth.

What is Flow 48?

Flow48 is a startup fintech company, originally from the UAE, but then, because of gathering the amount of SMMEs that are in South Africa, the company saw the need to penetrate the South African market.

The company was originally founded in 2022 and then branched out into South Africa in 2023. They offer non-dilutive working capital, and because of the technology they utilise, SMEs can seamlessly apply.

“There’s no red tape, we don’t require a list, a handful of documents, we just require two sets of documents, a 12-month bank statement and your aged receivables, and that’s it,” says Thabiso Mkhasibe, Flow48’s Business Development Manager.

What SMEs Can Do to Help Themselves?

For many entrepreneurs, the biggest hurdle is not only securing funding but also knowing how much capital they actually need and how best to use it. Without financial knowledge and planning, businesses can either underfund themselves or take on more than they can manage.

To avoid creating unnecessary strain on the business, businesses should do the following:

• Keep accurate financial records.
• Understand how much cash flow you need.
• Be prepared to clearly demonstrate their revenue streams, expenses, and growth potential.

The above allows you to stand a much better chance of accessing funding. Beyond record keeping, entrepreneurs should also think strategically about capital. Funding should not only be used to cover immediate gaps, but also to position the business for long-term growth.

Mkhasibe explained that funding isn’t only for businesses going through tough seasons. “Whether it’s seed capital or expansion capital, you often find that some SMEs that are thriving will say, ‘We’re making money, we don’t need funding.’ But that’s a big mistake, because they end up using their cash reserves to fund major projects or buy expensive equipment. I’ve seen it happen where a client I approached 12 months ago told me, ‘I’m liquid, I don’t need funding,’ only to come back a year later in financial trouble,” Mkhasibe says.

This highlights an important lesson. Being profitable does not mean your business doesn’t need funding. Funding can serve as a buffer that ensures your business growth is sustainable.

Securing external capital at the right time can prevent entrepreneurs from depleting their cash reserves. Additionally, it gives them the flexibility to scale faster, expand into new markets, and cushion themselves against future challenges.

Building Trust Through Visibility

For Flow48, participating in platforms like the SME South Africa Funding Summit is also about strengthening trust with the SME market. As a new fintech entrant in South Africa, one of the company’s biggest challenges has been visibility.

“We often found that entrepreneurs liked what we were offering, but they’d say, ‘I’ve never heard of you before.’ Even when we directed them to our website or LinkedIn page, there was still hesitation because funding is a trust-based decision,” Mkhasibe explained.

This is why events like the Funding Summit are so valuable. They give funders multiple touchpoints to engage directly with entrepreneurs, creating familiarity and credibility. “In marketing, someone needs to interact with your brand at least five times before making a decision,” he added. “This event gives us another opportunity to build that trust, so that SMEs start seeing Flow48 as a reliable partner.”

If you missed the 2025 SME South Africa Funding Summit, fear not! You still have a chance to join us in 2026. Expect incredible insights, funding partners, networking opportunities designed to help your business grow, and much more. Join the waitlist now.

The SME South Africa Funding Summit aims to serve as a bridge to the funding gap in South Africa. To pave the way towards achieving this, SME South Africa partnered with esteemed brands that also target SMEs. One of these respectable brands is Old Mutual SMEgo, which came on board as a bronze sponsor for the inaugural event.

We had a chat with Thandeka Dludla, the business manager at Old Mutual SME Business unit.

“We have developed a digital platform called SMEgo. SMEgo, true to its name, is for small to medium enterprises on the go that need to manage their business. They could use it on the web as well as mobile apps,” says Dludla.

What is SMEgo and How Does it Serve SMEs?

Thandeka explains that this platform was developed to solve the pain points of SMEs. SMEgo is a digital platform developed by Old Mutual, where businesses can access essential tools and support needed to thrive.

“We have solutions to help businesses grow their business and run their business, as well as protect their business,” Dludla explains. The tools that businesses can access on SMEgo include invoicing solutions, accounting, funding, HR, payroll, legal, and so much more.

SMEgo also offers funding opportunities, serving the market as an aggregator. “That means we have brought multiple funders into one platform, where we facilitate a journey of applying to multiple funders through one application,” she says.

SMEgo essentially walks the journey with SMEs to get matched to the right funder, and where they are not funding ready, they receive solutions to help them achieve that.

Thandeka continues to explain that SMEgo aims to solve the funding challenge in a unique and comprehensive way. “These solutions include financial management, where they could start generating their own financial statements, credit scoring capabilities, where they access their own credit score and understand how much they could ordinarily qualify for, as well as cash flow management tools.”

Essentially, SMEgo empowers the SME with a collection of tools that help them manage their finances, whether it be their income and expenses, or accessing funding for that little extra cashflow boost.

Key Takeaways From Old Mutual SMEgo at the SME South Africa Funding Summit

At the SME South Africa Funding Summit, Old Mutual SMEgo connected with SMEs to expose them to tools that can make their funding journey easier.

“SMEs don’t know which funder needs what, and they don’t have the time to figure out the various funder requirements, terms, and the underlying terms and conditions. So, we’re here to bridge that gap,” she explains. “They finally have somebody to help them on that journey and minimise the pain points of figuring it out for themselves or going to multiple funders only to spend months on end waiting for an answer and then getting declined.”

The SME South Africa Funding Summit offered an opportunity for SMEgo to directly engage with their audience. This brand engagement enables them to better serve their market. The team on the ground were able to connect with their customers and take part in important conversations about the challenges they face in their businesses. Entrepreneurs could stop by their exhibition stand to find out more about the SMEgo platform.

Sponsoring the SME South Africa Funding Summit

Old Mutual SMEgo’s involvement in the summit as a bronze sponsor gave them the chance to directly speak to businesses in need of support through information and access to tools. In addition, Dludla touched on how this opportunity isn’t only beneficial for businesses looking for funding but also makes it easier for funders.

According to Dludla, an in-person event such as the Funding Summit solves the funders’ issue of carving out time to educate interested business owners. “This is actually a big thing for the funders. So from that perspective, it’s not even necessarily about the funding itself but rather about shortening the process for them,” she smiles. “I think that is a game changer.”

To find out more about the Funding Summit, keep an eye out for our post-Funding Summit report that unpacks the success of this first event.

The 2025 SME South Africa Funding Summit took place on the 12th of June at the Empire Conference and Events Venue in Parktown, Johannesburg.

The event brought together hundreds of entrepreneurs, funders, ecosystem builders, and more under one roof, all with a common purpose: to tackle the pressing issues around access to funding for small and medium-sized enterprises (SMEs).

With a strong lineup of speakers, investors, exhibitors, and vibrant networking sessions, the summit served as a vital platform to spark solutions and share strategies for improving South Africa’s funding landscape.

Part 1: Early-Stage Funding

The event kicked off with a powerful welcome from Velly Bosega, CEO of SME South Africa.

Among the standout speakers of the morning was Darlene Menzies, CEO of FinFind, who unpacked the findings from the MSME Access to Finance Report 2025. The report revealed critical insights into how South Africa’s SMEs are accessing or struggling to access funding.

This was followed by the Deputy Minister of Small Business Development, Jane Sithole, who delivered a keynote address on the importance of creating a more inclusive funding landscape. She emphasised the need for more real-time data and accessible reports on SME funding to drive initiatives to create solutions that address the funding gap.

Entrepreneurial inspiration was also front and centre. Sheldon Tatchell, founder of Legends Barber, shared his bootstrapping journey and insights on growing the Legends Barber brand into a success story. His story underscored the importance of faith, determination and collaboration in growing a business.

The first tea break was a hive of activity. Conversations flowed among attendees, funders, and exhibitors, all eager to connect, share, and collaborate.

Part 2: Growth-Stage Funding

During the next session, Donald Valoyi, founder of Zulzi, delivered insights on building a strong pitch deck for early-stage funding. He broke down the essentials investors are looking for, as well as how to position yourself as a business that investors chase.

A highly anticipated panel followed, diving into alternative funding options for early-stage entrepreneurs. Industry experts like Thandeka Dludla from Old Mutual SMEgo, and Jedd Harris from Sourcefin weighed in on how SMEs can think beyond traditional funding institutions.

The session titled “What Venture Capitalists & Angel Investors Are Really Looking For” was another major highlight. Jameel Khan and Shaun Naidoo gave attendees a rare inside look at how funders assess risk, leadership, market potential, and more.

Part 3: Industry-Specific Funding Insights

The afternoon sessions shifted focus to industry-specific funding, tackling the nuanced financial needs across various sectors

Louise Naidoo, product head of FNB Commercial, shared up-to-date funding trends, including sector-focused funding models. The spotlight moment came when Litha Kutta from Land Bank delivered a talk on Agri-Business Funding. His insights were so impactful that he was surrounded by hopeful agri-entrepreneurs eager to ask follow-up questions during the networking session.

A panel discussion between Hlengiwe Makhathini of IDF Capital and Mokgome Mogoba from Kholo Capital tackled Traditional Financial Models vs Innovative Approaches, helping business owners understand how to position themselves for both conventional and alternative funding paths.

Compliance was another important topic addressed by Mosebetsi Seloane from the Gauteng Enterprise Propeller (GEP). He addressed the challenges of meeting funding compliance requirements and how compliance mistakes can prevent businesses from receiving the funding they need.

Closing out the content sessions was Zama Nqadolo, Investment Manager at MIC, who explored The Scaling Blueprint: Strategy, Structure and Story. She outlined how SMEs can build scalable business models while retaining their identity and mastering how to relay their story and prioritise community impact.

Insights From Entrepreneurs at The Funding Summit

We spoke directly to some of the attendees to understand how the summit made an impact.

Lethabo, founder of Laka Beauty, shared:

“I struggle to scale because I only hear about banks when it comes to funding. I came to the summit hoping to learn better ways to access funding. I’m currently reselling in bulk, but I want to create my own products and manufacture locally. Sales are strong, but I face long wait times with Chinese manufacturers – which means my products are sold out for too long.”

Kopano from Bakwena Telecommunications reflected:

“I’ve applied for funding before but always got rejected with no explanation. When I spoke to one of the consultants at the Business Partners exhibition stand, I found out that not having audited financials is an automatic red flag. Platforms should tell us why we were rejected. This summit helped me realise where I’ve been going wrong.”

These stories show the importance of better feedback systems within funding platforms. Entrepreneurs need clarity, whether it’s through automated rejection reports or follow-up communication to improve their chances the next time they apply.

Insights From Investors and Funders at The Funding Summit

One of the major takeaways from the summit was that alternative funding is becoming an increasingly viable option for SMEs that are often overlooked by traditional banks and DFIs. Many of the funders present emphasised that SMEs should not limit themselves to conventional funding sources.

Nolan Ngobeni, Director of Boost Investments, highlighted how events like the SME Funding Summit help funders like himself connect directly with the businesses they aim to support.

“We fund SMEs with government purchase orders, and events like this help us identify the right businesses to support,” he said. “It also gives us a clearer understanding of the challenges entrepreneurs are facing.”

Tshepo Mogale from Oricred echoed this sentiment, reinforcing that there is space in the funding landscape for alternative players.

“We’ve funded over 1,000 SMEs,” he explained. “Entrepreneurs need to know there are options beyond banks and DFIs. At Oricred, we’re not looking to turn people away — we’re here to find a fit. That’s what platforms like this summit help us do.”

This is an indicator that the funding landscape is becoming more flexible, offering practical solutions that cater to the real needs of SMEs, rather than forcing them into rigid traditional structures.

Where to From Here?

The 2025 SME Funding Summit succeeded in doing more than just connecting entrepreneurs and funders, it opened up room for real conversations, unpacked industry data, and empowered SMEs with tools to take their next steps.

However, it’s clear that the work is far from done. More support is needed beyond the summit. Platforms, funders, and government must create systems that demystify funding and give entrepreneurs a fair shot.

The SME South Africa Funding Summit aims to be the number one funding event for SMEs. As this was the first annual funding summit by SME South Africa, we look forward to what this event will bring in the coming years.

Are you bootstrapping your business, but just not stretching your Rands enough, or do you think there’s something you’re not doing right? Well, the SME South Africa Funding Summit will cover the ins and outs of bootstrapping a business.

Bootstrapping might not be the most preferred method of funding a business, but it’s one of the most practical, and it’s how many entrepreneurs start, even if they do get other forms of funding down the line.

Initially bootstrapping your business means that you have a proof of concept that investors can look at, and funding institutions can see that your business idea is indeed viable.

Why Would an Entrepreneur Need to Know About Bootstrapping?

According to the South African Accounting Academy, one of the reasons why businesses in South Africa fail is not only because of a lack of access to finance, but lack of planning, financial expertise and poor cash flow management. In other words, the little cash they have to start their own business is either not effectively used or isn’t properly planned for.

It’s easy to think that funding your businesses out of pocket is bound to fail without big funding, but success isn’t just about having money, it’s about managing what you have wisely. With a solid strategy, a clear plan, and strong financial literacy, even a small amount of startup capital can be stretched to build something sustainable. It’s not just about how much you have, but how well you use it.

Fortunately, the SME South Africa Funding Summit will have experts with real bootstrapping experience to give you the guidance you need.

How Will the Summit Help With Bootstrapping?

There are essential aspects of bootstrapping that every entrepreneur needs to know. Attendees of the SME South Africa Funding Summit can expect the following:

Bootstrapping 101:

Bootstrapping is a challenging way to fund your business, and it surely isn’t a process that should be the result of thumb-sucking. Entrepreneurs need to ensure that they conduct the necessary research to increase the likelihood of succeeding. At the summit, you’ll receive guidance on the holistic process of bootstrapping a business.

Bootstrapping mistakes to avoid:

When you’re starting a business with little to no guidance, you’re bound to make mistakes, and some of those mistakes can have a financial strain on you and your business. At the SME South Africa Funding Summit, we’ll have industry leaders like Sheldon Tatchell of Legends Barber to provide necessary insight on bootstrapping your business, bootstrapping mistakes to avoid, and how to scale your business with funding at the right time.

When to stop bootstrapping your business:

While this type of funding can work for some time, it’s important to know when to stop bootstrapping your business and take the next step. Entrepreneurs will receive insight on how to start looking for investors when they’re ready to stop bootstrapping.

The Funding Summit takes place on the 12th of June, 2025 and will be the highlight of your search for funding. Come and join the eventful day for only R 350 entrance fee. No tickets will be sold at the door, so make sure you grab yours before it’s too late! Book yours on our events page.

Given South Africa’s history of marginalisation and poverty, there is an incredible need for successful small businesses that address the job creation and economic impact to rectify these legacy issues. Small businesses account for about 28% of jobs in the country, indicating the tangible impact they have in alleviating these socioeconomic issues.

Isn’t it time that the businesses that support the economy have support?

The Potential Social Impact of the Funding Summit

SME South Africa currently helps businesses by providing access to funding opportunities as well as catering to the small to medium enterprise market as a resource platform for entrepreneurs to gain the necessary knowledge and tools to propel their businesses.

Among the many free resources, articles, guides, webinars and SME Advice consulting platforms to name a few, the brand is extending its impact on small businesses with its latest addition: The SME South Africa Funding Summit.

With the funding summit, these efforts are taken a step further by giving entrepreneurs an easily accessible way to meet leaders face-to-face and gain the secrets of succeeding in any industry.

Eliminating the Barriers to Gatekeeping

Business is highly competitive, and as an entrepreneur, you might sometimes feel like there isn’t enough support or that certain resources are intentionally kept out of reach. However, the SME South Africa Funding Summit aims to eliminate these barriers by providing access to crucial information and opportunities. This summit also addresses social impact through the following:

• Accessibility: Many summits cost thousands of rands, but with the SME South Africa Funding Summit, you don’t have to break the bank. Tickets are only R350.
• Insights from entrepreneurs who’ve built businesses from nothing: Relatability is key when inspiring or mentoring small business owners. Many of our speakers have started from the bottom, overcoming challenges that many entrepreneurs face today, and have gone on to create lasting impact in their industries and communities.
• Increased chances of business success: By attending this summit, businesses will learn what works and how to avoid common mistakes, positioning themselves for growth and future job creation.
• Funding opportunities for business growth: Funding is one of the biggest barriers preventing businesses from scaling. The SME South Africa Funding Summit provides access to funding opportunities and equips businesses with the knowledge to ensure they are prepared and eligible for funding.

Success Stories of Our Funding Summit Speakers

Legends Barber founder, Sheldon Tatchell

Sheldon Tatchell, founder of Legends Barber, started with just one haircut at a time on a stoep. From these humble beginnings, he grew the business into a nationwide chain with over 50 shops across South Africa and Namibia. Along the way, he tackled unemployment by creating job opportunities and empowering youth through his Legends Training Centre.

Serial-entrepreneur, Velly Bosega

Velly Bosega’s journey from selling Zam-Buk on the street to owning multiple businesses, one of which is an accomplished digital marketing agency, is an inspiring story. Due to his passion for entrepreneurship, he also founded SME South Africa, which uplifts SMEs through tools and funding. Not only is he creating jobs, but he’s also empowering other entrepreneurs to do the same.

Founder of Zulzi, Donald Valoyi

Donald Valoyi founded Zulzi in 2013 as a small e-commerce platform and expanded it into a fast delivery service. By 2015, he introduced one-hour deliveries for students, later scaling to groceries, liquor, and pharmaceuticals. Partnering with Checkers, he helped launch Sixty60, revolutionising online shopping. Through Zulzi, he secured funding, built a logistics network, and created jobs, driving economic growth and innovation in South Africa.

Our entrepreneurial success stories don’t end here, there are several other highly accomplished speakers joining us at the SME South Africa Funding Summit.

Grab your ticket to the Funding Summit before they are sold out.