Prime Highlight:

• Business Partners has launched a R90-million Basadi-Women Growth Fund to help women entrepreneurs access financing and grow their businesses.
• The initiative aims to address systemic barriers that force many South African women to exit entrepreneurship due to limited funding and support.

Key Facts:

• The fund will provide R250,000 to R5 million in tailored financing for women-owned SMEs, including property, working capital, equipment, and franchise purchases.
• Only 4.1% of women in South Africa own established businesses compared to 7.9% of men, and just 4.9% of women-led ventures reach 20+ employees.

Background:

Business Partners, a leading SME finance provider, has launched a R90-million Basadi-Women Growth Fund to support women entrepreneurs who struggle to access traditional financing. The company announced the initiative after new research showed that women in South Africa leave their businesses at higher rates than they start them, mainly due to limited funding.

The new fund will offer tailored finance ranging from R250 000 to R5 million, targeted at women operating viable formal small and medium-sized businesses. It aims to close the funding gap that prevents many women from sustaining or expanding their enterprises.

Business Partners regional investment manager René Botha said South African women continue to face higher unemployment and lower education levels compared to men, and these inequalities also reflect in business ownership. According to the Women Entrepreneurship in South Africa Report, 7.9% of men own established businesses, nearly double the 4.1% among women.

The report shows that many entrepreneurs leave their businesses because they are not making a profit. More women (34.4%) than men (21.5%) decide to quit for this reason. Women also have more family responsibilities and find it harder to get financing.

Botha stressed that unequal access to funding slows the growth of women-led businesses. Only 4.9% of women-owned ventures reach 20 or more employees, compared to 11.8% for men.

The Basadi-Women Growth Fund will support property acquisition, working capital, equipment, asset finance, and franchise purchases. The financing includes flexible features, such as interest capitalisation or a six-month repayment moratorium.

To qualify, businesses must be at least 50% women-owned, formally registered, and earning below R20 million in annual turnover.

Botha said the fund will provide capital, technical support, networking, and mentorship, helping women overcome deeper systemic barriers and strengthening their role in economic growth.

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