MSMEs continue to face barriers when it comes to securing finance for sustainable growth, including limited collateral, complex loan application processes with onerous supporting documentation requirements, high interest rates, and cash flow challenges from delayed payments. .
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The Durban Chamber of Commerce and Industry has partnered with Finfind to help micro, small and medium enterprises (MSMEs) in KwaZulu-Natal access funding more efficiently and improve financial readiness.
Announcing the partnership earlier this week, the Durban Chamber said the collaboration was aimed at addressing the major financing barriers facing small businesses, including limited collateral, complex loan application processes, high interest rates and cash flow constraints caused by delayed payments.
Durban Chamber CEO Palesa Phili said the initiative aligned with the chamber’s strategic objective of supporting MSMEs as a key driver of the local economy.
“MSMEs are the backbone of our local economy, but many are constrained by financial barriers, limited market access, and regulatory challenges,” said Phili.
“In line with our strategic objective as the voice of business in eThekwini, it is important for us to continue to identify ways we can help support and educate MSMEs, as they are the backbone of business.”
She said the partnership was a direct response to findings from the chamber’s business survey, which identified access to finance as one of the biggest obstacles facing small businesses.
“This partnership is a practical step forward for MSMEs and is a direct response to the Chamber’s business survey, which highlighted access to finance as a primary challenge for this sector,” Phili said.
“It strengthens our ability to help businesses understand funding, become funding-ready, and access lenders that match their specific funding needs.”
Finfind’s online platform connects businesses with more than 300 funders and over 600 finance products through an automated matching system designed to help entrepreneurs identify funding products suited to their business profiles and requirements.
Phili said many entrepreneurs wasted time applying for finance products for which they did not qualify because they lacked information about funders’ requirements.
“Most business owners don’t know which funders or what finance products best fit their needs or what the various funders require from them; as a result, they waste a lot of time applying for funding they don’t qualify for,” she said.
“Finfind provides a centralised, transparent platform that has all the public and private funders in the country, that automatically matches the business owners with the right offerings, and guides them through the documentation and compliance steps needed to apply with confidence.”
The Durban Chamber said the initiative would also help businesses address short-term liquidity pressures through access to working capital products such as invoice financing, bridging finance and asset-based lending.
The organisation noted that improved funding access could benefit a broad range of sectors in eThekwini and KwaZulu-Natal, including manufacturing, tourism, logistics, agriculture, township enterprises and technology start-ups.
Darlene Menzies, CEO of Finfind, said the partnership was particularly important for smaller businesses that often struggled to secure traditional bank funding.
“With high unemployment remaining one of South Africa’s most urgent challenges, the role of MSMEs in scaling job creation and stimulating inclusive economic growth has never been more critical,” said Menzies.
“Formal micro enterprises with turnovers of less than R1 million a year are responsible for over 80% of the jobs created by MSMEs and make up more than 85% of the funding need, yet they are the most underserved by funders.”
“If we are serious about job creation, we must invest all our efforts in supporting the businesses that are creating the jobs,” she added.
Over the next 12 months, the Durban Chamber said it aimed to increase the number of MSMEs successfully securing loans, grants and investment, while improving financial literacy, compliance and business sustainability.
“Our focus over the next 12 months is outcomes — more funded businesses, stronger compliance and financial discipline, and real growth that translates into local jobs,” said Phili.
“This partnership strengthens our value proposition to members and gives us a credible tool to track impact and refine our support to the MSME community.”
BUSINESS REPORT