Women on Wealth: Driving capital market investments in SA’s SME sector

South Africa's SME sector holds immense potential for economic growth and job creation, yet access to funding remains a significant challenge for many small and medium-sized enterprises. The Johannesburg Stock Exchange (JSE) has taken proactive steps to support the development of the SME sector, with a focus on providing capital access, market access, and mentorship to entrepreneurs. In a recent interview with CNBC Africa, Cleola Kunene, SME Development Leader at the JSE, shed light on the evolution of the JSE's SME programme and its impact on South Africa's business landscape. The JSE's SME programme has evolved over the years, initially focusing on accelerating the growth of medium-sized companies and helping them transition into large enterprises. The introduction of the JPP platform, a digital capital matching solution, has provided businesses with a unique opportunity to connect with investors and access the funding they need to scale. Kunene highlighted a key initiative in the Western Cape, where 100 companies are being matched with capital providers by November, demonstrating the JSE's commitment to supporting SME development across the country. When it comes to capital access, the JPP platform is open to businesses of all sizes and stages, from ideation to established enterprises. While the platform currently caters to South African businesses, there are plans to expand its reach in the future. Kunene emphasized the importance of capital readiness for SMEs, noting that bridging the gap between businesses and funding sources is essential for driving economic growth. Addressing the issue of diversity in funding, Kunene highlighted the challenges faced by women-led businesses in accessing capital. While the JSE's platform does not discriminate based on gender, Kunene emphasized the importance of supporting companies in becoming 'capital access ready' by understanding the various types of funding available and preparing their businesses for investment. By providing mentorship and guidance, the JSE aims to empower SMEs to navigate the complex funding landscape and secure the resources they need to succeed. Despite the availability of funding options, many SMEs struggle to access capital due to various barriers. Kunene identified knowledge, access to data, and credibility as key factors that can impede businesses from securing funding. By educating entrepreneurs about the different sources of funding, helping them access relevant information, and building credibility through small-scale demonstrations of financial responsibility, the JSE aims to bridge the gap between SMEs and investors. In conclusion, the JSE's commitment to supporting SME development in South Africa is evident through its innovative programmes and partnerships with the private sector. By providing a platform for businesses to connect with capital providers, offering mentorship and guidance, and addressing the unique challenges faced by SMEs, the JSE is playing a vital role in driving economic growth and fostering entrepreneurship in the country.