In South Africa, small to medium enterprises comprise an estimated 20% of gross domestic product and employ approximately 47% of the workforce. These businesses are the doorway to economic prosperity, employment, thriving communities and alleviating poverty. The current macro-economic climate in South Africa is challenging for SMEs. Interest rates, inflation, and unemployment levels continue to fluctuate, with global social and geopolitical uncertainty resulting in exchange rate volatility and slow economic growth rates.
There remains an urgent requirement on the development sector to make sure that these SMEs are well prepared to access the kind of funds that they require to unlock opportunities within the sectors in which they operate, and to increase opportunities for market access.
As expert solutionists in small business development, Edge Growth combines passion, expertise, innovative approaches and a clear vision to deliver sustainable impact that is measurable and meaningful.
Highlighting the accomplishments of the SMEs within their network over the past year, Edge Growth has launched their 2024 Impact Report. The report contains a detailed analysis of the positive social and economic upliftment made through their efforts to facilitate and enhance job creation.
“Our central purpose is growing small businesses to create employment and drive sustainable change. We believe that SMEs can change our world for the better and our purpose is to help them overcome their barriers to growth and provide entrepreneurs with innovative ideas with an opportunity to thrive,” says Daniel Hatfield, Chief Executive Officer at Edge Growth.
Edge Growth, which was founded 17 years ago, specialises in co-creating innovative solutions designed to provide SMEs with skills development, funding and market access while helping them overcome constraints to their business growth. Their achievements to date include R2,3bn total assets under management and over R 1.5bn in funds deployed to over 1 000 SME beneficiaries, the creation of over 13 000 employment opportunities which has positively directly affected over 100 000 livelihoods.
Highlights from 2024 include R3,632bn in SME revenue earned cumulatively, with 46 of the SMEs under Edge Growth achieving a growth in revenue of more than 40%. Furthermore, at least 31% of the SMEs impacted by Edge Growth are black women owned.
A standout SME which Edge Growth profiled at the Impact Report launch event included Johannesburg-based Beyond The Eyes Network , a majority black-owned media and film production company established to provide audiovisual solutions to corporate clients. Prior to joining the Edge Growth managed Royal Bafokeng Nation (RBN) Kgolo Enterprise and Supplier Development Programme in 2023, the company’s growth was slow with minimal year-on-year increases in revenue, and challenges gaining a foothold in the highly competitive film industry. Today, the company has achieved significant growth with increased revenue and job creation, expanding into film and TV production with the goal of licencing intellectual property to streaming platforms.
Massive Quantum is a 51% women-owned and managed company in Cape Town that supplies a range of chemicals and products to industries that include mining, energy, water, steel, and food and beverage. The company’s products are sourced globally and often require upfront deposits which put the company under ongoing financial pressure. Edge Growth’s Action Fund provided Massive Quantum with a facility specifically for working capital to assist with cash flow as well as growth support that included the implementation of customised HR policies, scorecards for business and employees, and the development of forward-looking strategies. Testament to the company’s growth and commitment saw Massive Quantum win the Gold Winners Trophy in the Business Turnaround and Recovery Small Business Category 2023 in the National Productivity Awards.
“Our goal is to create sustainable livelihoods by supporting SMEs to grow and become sustainable. Whether the SME is a solopreneur building a lifestyle business or a high-growth SME employing people and creating jobs, their commitment to building a business has an impact,” says Susan Moloisane, Chief Executive at Edge Growth Solutions.
Effectively measuring impact is core within the SME development space, as it guides improvements, assesses effectiveness, demonstrates value and drives accountability. Quantifiable success stories also attract funding and support in the long-term.
“We need to measure things. We need to hold ourselves accountable. It needs to matter if you’re delivering to a purpose outcome,” says Hatfield.
To further Edge Growth’s impact ambitions, this year saw the company launch the Impact Centre of Excellence project to establish best practice within this space. Impact is tracked across five core target outcomes including jobs created and sustained within each SME, improved economic prosperity, enhanced SME governance, improved environmental sustainability and diversity and inclusion in the SME ecosystem.
To read the comprehensive Impact Report, please visit edgegrowth.com.
Caption from L to R
- Stuart Townshend – Director at Edge Growth
- Lesego Lebuso – Royal Bafokeng Holdings
- Janice Johnston – Chief Executive of Edge Growth Ventures
- Mandla Mbuyazi – Impact Investment and Ideation Lead at First Rand and keynote speaker at the launch
- Susan Moloisane Chief Executive of Edge Growth Solutions
- Nabeela Vally – Head of Business Development Edge Growth