Opportunity Issue 98

SMALL BUSINESS
The key to a successful
economy is a better
balance of SMEs
As financier Business Partners Limited marks its 40th-anniversary
milestone, Managing Director Ben Bierman reflects on how the
local SME sector has still not reached its full potential.
The positive role that small and medium enterprises
(SMEs) play in the local economy has been raised
time and time again and is largely undisputed. From
providing employment opportunities, to solving business
challenges, these businesses can offer an innovative and
agile approach oftentimes lacking in larger companies.
SMEs have, however recently had to overcome economic
headwinds, even pre-Covid-19, due to a sluggish economy
and, added to the recent challenges of the pandemic, will likely
continue to face challenges such as the high cost of running
a business, excessive red tape, access to markets, financing
and technical knowledge. This is according to Ben Bierman,
Managing Director of Business Partners Limited, a specialist risk
finance company for formal small and medium owner-managed
businesses, reflecting on the company’s past four decades in the
local SME financing landscape.
“Looking at various first-world economies, it’s clear that a good
balance of different-sized businesses and equally distributed
wealth in the business sector is crucial to a thriving economy,”
Bierman points out. “In South Africa, most of the economic
power has for too long been held by the large corporates, and
for our economy to grow and thrive, a larger base of mediumsized
businesses is required. This key shift, however, requires an
ecosystem that better supports these businesses.”
Bierman adds that Business Partners Limited is proud of the
contributions made to the SME ecosystem, albeit more remains to
be done. The year 2021 marks the company’s 40th anniversary, and
to date Business Partners Limited has provided R20-billion in finance
to South African business owners via more than 71 000 transactions,
which has in turn assisted in facilitating over 671 000 jobs in the
country.
Bierman says that over the past 40 years some of the key
challenges that were facing the industry have remained and include
a lack of financial literacy among business owners, non-compliance
with legislation and the availability of collateral which hinders access
to much-needed financing opportunities. The challenges are even
more pressing today as SMEs battle to survive the current pandemic.
He highlights some of the key changes he has witnessed, as
well as urgent efforts that need to be taken by both South Africa’s
government and private sector, in order to better support SMEs as
the country paves the road to recovery:
Tshepo Mekoa’s business Brima Logistics was expanding until Covid-19 hit, then
he had to adapt and show resilience. One of the sources of support finance for
the business was an emergency loan from Business Partners Limited.
18 | www.opportunityonline.co.za