In that encounter with my friend, he had skinned a very critical issue of policy to its core – the need to create the strategic and physical infrastructure
MONEYWEB
Yes, SMEs need loan funding, but thatâs not all they need
Contrary to common belief, banks like Absa have a robust and growing SME loan book. But small and medium-sized enterprises also need business guidance and stronger networks. 00:01
Letâs be honest: the odds of a new business succeeding are not great.
In the US the failure rate is about 50% in the first five years. In SA, the failure rate is reckoned to be 70% in the first year, according to former Trade and Industry Minister Rob Davies.
Henry Gachukia, chief credit officer for private banking and SMEs at Absa, says the reasons for this high failure rate have been extensively studied, and the most common cause of failure is mismanagement of cash flow.