Old Mutual Launches R4.2m Pitchathon for ICT, Financial Services SMEs
Old Mutual SMEgo has launched its second SMEGo Pitchathon, inviting companies in the ICT and Financial Services sectors to compete for R4.2 million in prizes, significantly more than last year. The event, held in Rosebank, aims to support 14 businesses with R300,000 each, addressing critical funding needs and fostering growth amid high SME failure rates.
Opportunities for SMEs in ICT and Financial Services
The Old Mutual SMEgo Pitchathon is designed to uplift SMEs in the ICT and Financial Services sectors, offering a total prize of R4.2 million, significantly higher than last year.
This initiative supports 14 businesses with R300,000 each, aimed at improving operational capacity amid high small business failure rates in South Africa, which can reach 70%.
At the launch, Nobesuthu Ndlovu emphasized, “We tackle the macro-economic challenge of employment by aiding businesses in growth, through operational tools that can serve as leverage.”
The Impact of Funding on Black-Owned Businesses
A panel discussion highlighted the challenges black-owned businesses face in securing funding, revealing a concerning statistic where banks contributed only 5% to their needs since 2001.
Pali Lehohla mentioned that familial support remains the main funding source, with significant government allocations during COVID largely unutilized, calling for improved frameworks.
“This indicates that we are not a learning nation,” Lehohla stated, stressing the urgent need for enhanced financial systems to ensure adequate support for SMEs.
In closing, the Old Mutual SMEgo Pitchathon represents a vital opportunity for SMEs in the ICT and Financial Services sectors to secure essential funding, fostering economic growth and innovation. By addressing critical financing gaps, particularly for black-owned businesses, the initiative not only empowers entrepreneurs but also aims to reshape the future of South Africa’s economy.
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