SMEgo Is A Fund That Seeks To Help SMMEs That Are Negatively Affected By The Covid-19 Pandemic. SMEgo is a multi-user web-based application platform launched in August 2020 that connects SMMEs with funding providers and funding opportunities in South Africa – whether it be loans, grants, or equity. By increasing accessibility to finance and simplifying the application process, SMEgo bridges the gap between funding and SMMEs.
According to Venture Burn SMMEs don’t have the cash reserves to deal with the setbacks created by the pandemic. For SMMEs, touted as the country’s answer to joblessness, to operate at full capacity, the sector will require up to an additional R346-billion credit facility, and the banks – the traditional lenders- cannot fill the gap.
The fund requirements might differ from fund to fund, however, the minimum requirements to apply are that the business should have R5 000 turnover per month, have a trade history of at least 3 months, the business needs to be more than 6 months old and the business needs to be registered as business documents need to be uploaded onto the platform. SMEgo has been specifically designed for businesses already in operation. The platform was born out of the COVID-19 pandemic as a means to assist existing businesses with finding funding after experiencing financial knocks. Businesses that have not yet been established do not qualify.
Rowan Spazzoli, a spokesperson for SMEgo told Venture Burn that, “Running a business in these times is difficult enough, finding support in the form of funding to get SMMEs back on their feet shouldn’t be. The purpose of SMEgo is to keep SMMEs in business by helping to connect small, medium and micro-enterprises to funding opportunities offered by corporates and various other organisations.” Other than facilitating the funding process, SMEgo can still provide entrepreneurs with a wealth of information that can benefit them and their business. The community page provides an ecosystem for the business world, where entrepreneurs can communicate with other SMEs, funders and business coaches.
“SMEgo was initially designed to be an online centralised funding application platform for SMMEs. But by increasing access to finance and simplifying the application process, SMEgo is a bridge between funders and SMME owners.” Spazzoli added.
