Latest news with #BusinessPartnersLimited
Zawya
04-07-2025
- Business
- Zawya
The sustainability edge: Beyond Earth Day, why going green is good for business?
Adopting green practices can feel like a drop in the ocean of climate change for small and medium enterprises (SMEs), but as South Africa reportedly warms at twice the global average, every drop counts. The effects of climate change range from prolonged droughts and heatwaves to devastating floods and are already disrupting communities, infrastructure, and the economy. For SMEs, Shawn Charlie, area manager at Business Partners Limited, says these disruptions pose serious risks – from the breakdown of supply chains and energy insecurity to increased operating costs and lower customer confidence. 'Yet, amid these challenges lies opportunity. Beyond Earth Day initiatives, SMEs are uniquely agile and well-positioned to implement sustainable changes that reduce risk, increase efficiency, and enhance brand loyalty.' Locally, trends indicate that consumers increasingly prefer brands that take a stand on environmental issues, especially younger generations who now make up a growing share of the buying population. 'If we're serious about building a resilient economy, we must empower small businesses to contribute to the green transition,' Charlie says, offering five actionable, affordable strategies that SMEs can implement today: - Cut energy usage Switch to LED lighting, invest in motion sensors, and use energy-efficient equipment. Where feasible, small-scale solar installations can provide long-term relief from rising energy costs and load shedding. - Reduce waste Go paperless by digitising invoices, payroll, and other admin tasks. Encourage recycling at work and minimise packaging materials. - Reconsider supply chains Partner with local or sustainably-minded suppliers to reduce transport emissions and increase traceability. - Green your products or services Eco-conscious consumers are growing in number. Offering sustainable alternatives – like biodegradable packaging, refillable products, or low-impact services – steps like these can open up new market segments. - Engage your team Encourage staff to contribute green ideas. Initiatives like lift clubs, recycling drives, or "no-print" days create a culture of sustainability from the ground up. 'Small shifts, consistently applied, can lead to significant savings and a stronger brand reputation,' Charlie adds. Despite these benefits, many SMEs are concerned about the upfront costs of sustainability initiatives. Charlie says this is where SME financiers like Business Partners Limited can make a real difference. 'We've developed targeted funding solutions that enable SMEs to invest in green infrastructure like solar panels, water-saving systems, or energy-efficient machinery. Our property finance enables business owners to purchase, develop or renovate property to their business's specifications,' he explains. 'We work with business owners to find the right balance between environmental responsibility and financial sustainability.' Beyond finance, we also offer mentorship, training, and business support services to help entrepreneurs incorporate sustainability into their operations and growth strategies. South Africa's climate trajectory is challenging, but its economic trajectory is still within our control. A 2024 McKinsey & Company report highlights that consumer-packaged goods marketed as sustainable grew 1,7 percentage points faster annually between 2018 and 2022 than their conventional counterparts. SMEs that act now to reduce their environmental footprint will contribute to a healthier, more inclusive future for the country. 'Customers want to support businesses that care. Being able to say your product is locally sourced, made with minimal waste, or uses renewable energy can be a game-changer,' concludes Charlie.
IOL News
01-07-2025
- Business
- IOL News
Business Partners launches Entrepreneur of the Year Award to support small businesses
Sheldon Tatchell, founder of the Legends Barber franchise, won the coveted Overall 2024 Entrepreneur of the Year award in the 36th annual Business Partners Limited Entrepreneur of the Year® awards in November last year. Image: Supplied Business Partners launched its Entrepreneur of the Year Award on Tuesday, an award that ranks among the most long-standing and prestigious of its kind in this country and which aims to foster growth in small and medium businesses by successful entrepreneurs. David Morobe, executive general manager of Impact Investing at SME financing company Business Partners said at an online event that the award, which was started in 1989 and stopped only during the Covid pandemic, aimed to honour entrepreneurs 'who don't give up on challenges.' There are award categories for different sizes of smaller businesses and for different types of entrepreneurs: Emerging Entrepreneur of the Year, SME Entrepreneur of the Year, Entrepreneur of the Year for medium-sized businesses, Job Creator of the Year, Innovator of the Year, Impact Entrepreneur of the Year, and Overall Entrepreneur of the Year. In the 2023, the competition attracted over 350 entries, and last year there were more than 650 entries. Morobe said there was a high quality of entrepreneurs in the last competition, and the greater stability and confidence in the small business sector, as indicated by the SME Index for the last quarter of 2024, might spur even more entries in the 2025 year. He said business confidence in the SME sector had noticeably improved last year after the formation of the Government of National Unity, and he hoped the GNU would continue, as the business confidence it had generated was vital to the growth of the SME sector, which in turn formed a major part of the growth of the overall economy and job creation. For example, the SME Index had shown that some 80% of SME business owners polled expected their businesses to grow in 2025, 64% were confident about obtaining access to finance to sustain their businesses, while 72% expressed confidence in their ability to attract talented staff. SMEs had played a pivotal role in the post-recovery of the economy after the Covid pandemic, he said. Business Partners area manager Lawrance Ramotala said this month that the contribution of small businesses to youth development is not only practical but deeply transformational. 'In many cases, SMEs are the first to take a chance on young people, whether by hiring them as first-time employees, helping them launch their first business, or partnering with them as we're seeing is a groundswell of youth entrepreneurship that's rooted in community enterprise,' he said. 'This is particularly evident in township settings, where formal employment is often out of reach. In these areas, youth-led micro and small businesses are not only becoming viable alternatives to traditional work but also creating employment for others in their communities,' he said. Morobe said the competition provides an opportunity for entrepreneurs to showcase their business excellence, services, and products to a wider community. The entrepreneurs get to interact with other businesspeople, organisations, and institutions they otherwise would not have been able to access, and it exposes entrepreneurs to opportunities for businesses to tap into improvements and innovations in their existing businesses. Visit:
Zawya
29-05-2025
- Business
- Zawya
Smooth business handovers: A survival guide for South Africa's entrepreneurs
In today's dynamic business environment, leadership transitions are inevitable. Whether due to a c-suite reshuffle, a merger, or an acquisition by a larger group, periods of transition can be destabilising for businesses of any size. In fact, research based on over 40,000 corporate acquisitions spanning over four decades has shown that 70% of mergers and acquisitions fail to fulfil their expectations. Amogelang Montane, human resources business partner at Business Partners Limited Amogelang Montane, human resources business partner at Business Partners Limited, believes that effective leadership is at the heart of any successful business transition. 'Any big change, when not managed properly, can result in operational inefficiencies, employee uncertainty, and even a knock to revenue. However, many of these results are often avoidable, and with a well-planned handover strategy, it's possible for your business to make it through these times of uncertainty.' While any change in leadership can be challenging to manage, Montane notes that mergers and acquisitions require particularly careful consideration – especially when a smaller business is being acquired by a larger company or corporation. 'When a business merges with another or is acquired by a larger group, the shift in company culture, operational processes, and management structures can cause significant disruption to the 'norm' employees have become used to. Small and medium enterprises (SMEs), in particular, may struggle to integrate into a larger corporate framework without a clear roadmap.' Montane lists four key considerations for entrepreneurs to ensure business continuity during these types of transitionary periods. - Clear communication Transparent communication with employees, customers, and other key stakeholders is vital. 'Ensuring that all parties are kept up to date about changes and their implications will help manage expectations and reduce uncertainty across the organisation,' says Montane. - Strategic planning A comprehensive transition strategy should be in place before any major leadership or structural change. This includes clear succession planning, especially for family-owned businesses and founder-led SMEs, notes Montane. 'These smaller, tight-knit businesses often face challenges when ownership or leadership is transferred. Without a structured succession plan, conflicts may arise, threatening the business's continuity,' he explains. - Talent retention It's estimated that 47% of key employees leave within the first year following a merger or acquisition, and 75% leave within the first three years. 'This is why keeping employees motivated and aligned with the company's vision during a transition is one of the greatest human resources responsibilities in a merger. The loss of talent after an acquisition can be so significant that it erodes value from the transaction,' says Montane. He adds that conducting due diligence around culture and operational processes is also critical when merging two organisations. 'While HR is responsible for supporting employees on a day-to-day basis, it is up to the leadership team to provide reassurance, guidance, and opportunities for professional growth to retain key talent.' - Financial stability Ensuring access to capital during periods of transition can help businesses to persevere through potential financial instability. 'As a financier to SMEs, we have seen first-hand how well-planned transitions supported by the right funding can ensure business continuity,' adds Montane. While leadership transitions can be daunting, they also present an opportunity for businesses to evolve and strengthen their competitive position. By implementing a structured approach, SMEs can mitigate risks and emerge stronger on the other side of change. 'As South Africa's SME sector continues to grow and evolve, businesses must embrace change as a constant. With the right leadership and strategic planning in place, transitions can be transformed into catalysts for success,' concludes Montane.
IOL News
29-05-2025
- Business
- IOL News
Challenges and opportunities for SMEs for the year ahead
A crucial factor in the success of many of these businesses was having a proactive plan to address the challenges they encountered. Image: Pexels South African small and medium enterprises (SMEs) have had a tumultuous few years, affected by a broad spectrum of political and economic issues. Despite these challenges, many business owners managed to keep their businesses afloat, and some have even found opportunities for growth and development. A crucial factor in the success of many of these businesses was having a proactive plan to address the challenges they encountered. This was according to Jeremy Lang, Managing Director at Business Partners Limited, who unpacks the four major challenges SMEs continue to face and must find ways to navigate this year: Supply chain disruptions The 2024 national general election results were painted as a democratic milestone but brought, and continue to bring, uncertainty and fears of political instability. Geopolitical conflict also continues to affect supply chains, impacting global sentiment and lowering confidence levels among local SMEs. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading According to the PwC 2023 Global Risk Survey, supply chain disruptions were identified as the primary external contributor to company risk, a trend that persisted in 2024. The backlog at the Port of Durban, a key logistics hub, serves as a notable example of the significant delays affecting local rail and port operations. The recent increase in tariffs on South African exports to the United States will affect many South African SMEs in that value chain. 2. Loadshedding While South Africa has enjoyed a prolonged period of (mostly) uninterrupted power supply, power outages were an ongoing issue up until the second quarter of 2024 with a daily average of 2.5 hours without power. Major retailers like Shoprite reportedly spent a monthly R100 million on diesel when the country was experiencing Stage 6 load shedding. With recent, sporadic blackouts being implemented by Eskom in quarter one of 2025, there are concerns that the ability to meet the energy demand is still very much in doubt. Persistent rolling blackouts last year contributed to a reduced growth forecast by the International Monetary Fund (IMF). The South African Reserve Bank estimated that loadshedding reduced GDP growth by between 0.6 and 2% between 2023 and 2024. 3. Rising inflation Rising food and fuel prices, coupled with a weakening rand and increased debt-servicing costs, pushed inflation to a high of 5.6% in February 2024. These conditions, combined with a prime lending rate of 11.75%, meant rising operational costs and reduced profitability. Many SMEs had to choose between passing on price hikes to customers and risk losing market share or absorbing increased costs and eradicating profit margins. Although the interest rate is currently on a decline, it will still take a while until it is at pre-Covid-19 levels. 4. Limited access to funding Only one in five SMEs manages to secure the financial support they need to grow their businesses. In South Africa, 87% of small businesses have never accessed credit due to traditional lending practices like reliance on collateral and rigid credit scoring systems creating financial exclusion. This exclusion is particularly pronounced among small and early-stage enterprises which make up the 'missing middle' of SMEs and don't fit traditional financiers' one-size-fits-all requirements. The truth is that funding is available, SMEs need to demonstrate that they are well-managed businesses with growth potential. SMEs must approach funders aligned to their funding needs. Funders want to invest in operations that show viability, scalability and a good return on investment for both the SME and the financier. 5. Turning obstacles into opportunities Lang believes that 2025 may offer more innovative and forward-thinking business owners the chance to transform some of these ongoing challenges into opportunities. Love local As geopolitical tensions persist across the globe, businesses are increasingly sourcing materials and products locally. SMEs can capitalise on this shift by integrating into local supply chains of larger corporations. The South African Revenue Service (SARS) also strengthened this incentive by placing a 15% VAT as of 1 September 2024 in addition to its existing flat 20% customs rate on imports from foreign ecommerce retailers like Shein and Temu that have reportedly exploited tax loopholes and the de minimis tax rule, which used to allow small online purchases under R500 to be taxed only at a flat 20% customs duty, without VAT. This initiative is aimed at protecting local industries and improving revenue. Leverage green tech The growing demand for sustainable alternatives presents an opportunity for SMEs in the renewable energy sector. Businesses can adopt renewable energy to cut costs and reduce operational disruptions should load shedding resurface, as well as provide affordable and reliable solar solutions, battery storage systems, or energy-efficient appliances. Either of these approaches would make an operation attractive to green-conscious customers and investors. Inflate value When costs go up, customers tend to seek out products and services that are cost-effective. SMEs can capture market share by addressing inflation-driven concerns and providing high-quality, affordable solutions to their customers. To tackle these issues, SMEs may need to conduct research or even implement technological solutions such as artificial intelligence in their operations to improve internal processes, resolve customer problems, and reduce production costs. According to the Q4 2024 Business Partners Limited SME Confidence Index, when asked if their businesses had ever collaborated with other small businesses to cross-sell each other's products or services, 42.56% of SMEs responded that they had not, while 37.57% indicated that they had successfully collaborated. Partnering with other SMEs is another effective way to provide value for customers. Get funding-ready Both the challenge and the key to financial resilience during challenging economic times is gaining and maintaining access to capital. Funding enables SMEs to overcome the impact of inflation, load shedding, and supply chain disruptions; and to invest in alternative energy solutions. It supports cash flow which in turn allows entrepreneurs to invest in initiatives that help them to manage rising costs and maintain competitive pricing strategies. 'By embracing innovation, addressing operational challenges head-on, and securing the necessary funding, South African SMEs can build resilience and position themselves for sustainable growth,' says Lang. 'With the right strategies, these businesses can not only overcome current hurdles they are facing this year, but also unlock new opportunities to thrive in an ever evolving economic landscape,' he said.
The Citizen
28-05-2025
- Business
- The Citizen
Challenges and opportunities for SMEs in 2025
2025 may offer more innovative and forward-thinking business owners the chance to transform ongoing challenges into opportunities. South African Small and Medium enterprises (SMEs) have been negatively affected by political and economic issues of the past months. SMEs play a crucial role in the country's economic growth and job creation. However, many owners managed to keep their businesses afloat, while some have found opportunities for growth. Before finding these opportunities, entrepreneurs had to devise a proactive plan to address the challenges they encountered over time. Jeremy Lang, Managing Director at Business Partners Limited, unpacks four challenges that business owners might encounter this year and how to navigate them. ALSO READ: Five tips for SMEs to build resilience in 2025 1. Supply chain disruptions 'The 2024 national general election results were portrayed as a democratic milestone, but they have brought, and continue to bring, uncertainty and fears of political instability. 'Geopolitical conflict also continues to impact supply chains, affecting global sentiment and eroding confidence levels among local SMEs,' said Lang. According to the PwC 2023 Global Risk Survey, supply chain disruptions were identified as the primary external contributor to company risk, a trend that persisted in 2024. The backlog at the Port of Durban, a key logistics hub, serves as a notable example of the significant delays affecting local rail and port operations. The recent increase in tariffs on South African exports to the United States will affect many South African SMEs in that value chain. 2. Load shedding He added that, despite South Africans enjoying long periods of uninterrupted power supply, the second quarter of 2024 was marked by frequent power outages, with a daily average of 2.5 hours without power. 'With recent, sporadic blackouts being implemented by Eskom in quarter one of 2025, there are concerns that the ability to meet the energy demand is still very much in doubt. 'Persistent rolling blackouts last year contributed to a reduced growth forecast by the International Monetary Fund (IMF). The South African Reserve Bank estimated that load shedding reduced GDP growth by between 0.6 and 2% between 2023 and 2024.' ALSO READ: Here are the dangers of loan stacking for SMEs 3. Rising inflation Lang said rising food and fuel prices, coupled with a weakening rand and increased debt-servicing costs, pushed inflation to a high of 5.6% in February 2024. These conditions, combined with a prime lending rate of 11.75%, meant rising operational costs and reduced profitability. 'Many SMEs had to choose between passing on price hikes to customers and risking losing market share or absorbing increased costs and eradicating profit margins. 'Although the interest rate is currently on a decline, it will still take a while until it is at pre-COVID-19 levels.' 4. Limited access to funding He said only one in five SMEs manages to secure the financial support they need to grow their businesses. 'In South Africa, 87% of small businesses have never accessed credit due to traditional lending practices like reliance on collateral and rigid credit scoring systems, creating financial exclusion. 'This exclusion is particularly pronounced among small and early-stage enterprises, which make up the missing middle of SMEs and don't fit traditional financiers' one-size-fits-all requirements.' Lang said funding is available, SMEs need to demonstrate that they are well-managed businesses with growth potential. 'SMEs must approach funders aligned to their funding needs. Funders want to invest in operations that show viability, scalability and a good return on investment for both the SME and the financier.' ALSO READ: Political uncertainties that will impact SMEs in the coming months Turning obstacles into opportunities He believes that 2025 may offer more innovative and forward-thinking business owners the chance to transform some of these ongoing challenges into opportunities. 1. Love local Lang said that as geopolitical tensions persist globally, businesses are increasingly sourcing materials and products locally. SMEs can capitalise on this shift by integrating into the local supply chains of larger corporations. 'The South African Revenue Service (Sars) also strengthened this incentive by placing a 15% VAT as of 1 September 2024 in addition to its existing flat 20% customs rate on imports from foreign e-commerce retailers like Shein and Temu.' These retailers have reportedly exploited tax loopholes and the de minimis tax rule, which used to allow small online purchases under R500 to be taxed only at a flat 20% customs duty, without VAT. This initiative is designed to protect local industries and increase revenue. 2. Leverage green tech He added that the growing demand for sustainable alternatives presents an opportunity for SMEs in the renewable energy sector. Businesses can adopt renewable energy to reduce costs and minimise operational disruptions in the event of load shedding resurfacing, as well as provide affordable and reliable solar solutions, battery storage systems, or energy-efficient appliances. Either of these approaches would make an operation attractive to green-conscious customers and investors. ALSO READ: How SMEs can leverage cross-border e-commerce opportunities 3. Inflate value Lang added that when costs go up, customers tend to seek out products and services that are cost-effective. 'SMEs can capture market share by addressing inflation-driven concerns and providing high-quality, affordable solutions to their customers. 'To address these issues, SMEs may need to conduct research or implement technological solutions, such as artificial intelligence, in their operations to enhance internal processes, resolve customer issues, and reduce production costs.' According to the 2024 Business Partners Limited SME Confidence Index in the fourth quarter, when asked if their businesses had ever collaborated with other small businesses to cross-sell each other's products or services, 42.56% of SMEs responded that they had not, while 37.57% indicated that they had successfully collaborated. 'Partnering with other SMEs is another effective way to provide value for customers.' 4. Get funding-ready Lang added that both the challenge and the key to financial resilience during challenging economic times are gaining and maintaining access to capital. 'Funding enables SMEs to overcome the impact of inflation, load shedding, and supply chain disruptions, and to invest in alternative energy solutions. 'It supports cash flow, which in turn allows entrepreneurs to invest in initiatives that help them to manage rising costs and maintain competitive pricing strategies.' NOW READ: SMEs' growth absent in Budget 3.0. Here's what entrepreneurs expected
