The importance of small and medium enterprises in South Africa’s economy is evident giving that they employ over 7million people. They contribute almost 50% GDP to the country’s economy.
Even though this group contribute a lot to the market economy, there are however some challenges facing them which includes access to finance, business development support and market access.

Standard Bank currently has a model for reaching out to SME’s:
Standard Bank Enterprise Development approach: Access to market and finance;
·       The model brings together corporate supply chains, financing and business development support opportunities.
·       New financing solutions for high growth small businesses, e.g. working capital, finance solutions.
·       New approaches to credit-entrepreneur assessment.
·       Solutions for helping businesses to manage their key risks and to enhance growth e.g. tool box.
·       Dedicated resources and experienced team.

Their Offering has been developed for:
·       New solutions and tools to counter common problems faced by SMEs seeking finance:
-Lack of collateral to be able to raise finance.
-Lack of financial statement to support application.
-Lack of basic business skills.
·       Access to supply chains.
·       Finance to build capacity to meet demand.
·       Build skills and capacity or provide the back-office support structures.

We recognise that in supporting SMEs, there are many challenges which include:
·       Operation risk in terms of BSME not been able to meet demand due to lack of skills and capacity.
·       The possibility of higher prices due to insufficient production efficiencies and the lack of economies of scale.
·       Lack of finance for the BSME to build capacity (e.g. equipment, working capital).
·       Lack of history and record keeping.

Improving the sustainability and performance of entrepreneurs and small and medium enterprises (SMEs) is key to an inclusive economic growth.

In order to ascertain the right business to support, we have developed a start up funding innovative psychometric testing which measures the customer’s entrepreneurial risk and provides a lending decision. This tool uses psychometric elements to assess various variables which include business skills, psychology and ethics, etc.
We have recorded success in these and many more: Filling station franchises, Food value chain opportunities, Product distribution centres, Installation companies, Cleaning and maintenance companies and Small contractors.
Entrepreneurs could also make use of our online management system which has a Bizconnect content-almost everything one wishes to know, networking links, banks products and services, etc.
With many success outcomes on businesses we have assisted, Standard bank prides in giving opportunities and supporting small and medium enterprises to promote future growth in the economy.