“Many funding institutions have stringent requirements that small businesses struggle to meet” – Trudy Theledi

Trudy Theledi is a perfect candidate for #InspirationWednesdays. Her typical day starts at 4 am! I am now realising that my 7 am is a rookie number. In this Q&A she talks about SMME funding, Venture Capital in South Africa and more. Here we go:

Sibusiso Nkosi: There is a big debate in the South African SMME landscape currently: Is there a shortage of funding for Small Businesses or not? What is your take?

Trudy Theledi: There is indeed a significant debate about the availability of funding for small businesses in South Africa. From my experience, while there are funding opportunities available, accessing them is often a challenge. Many funding institutions have stringent requirements that small businesses struggle to meet, especially in terms of credit history and financial documentation. Also, the funding that is available may not always be tailored to the specific needs of black-owned businesses, which can exacerbate the challenges we face. So, while funding exists, the barriers to access create a perceived shortage. And so I believe that’s why organizations like Invest Edge Africa exist, to provide alternative funding to address some of the challenges SMMES face in accessing traditional funding.

Sibusiso Nkosi: Give us a picture into what your work is. What does your normal day look like?

Trudy Theledi: My day typically starts early, around 4 AM. I am a broadcaster, News to be specific and so I’m at the studio an hour before to prep for my 6am bulletin. After the show I make my way to my 9-5 at Invest Edge Africa. I begin with some planning and reviewing emails. My work often involves managing relationships with our local and international partners. I also liaise with our brilliant COO who oversees staff, operations & service delivery. So, I receive updates from him on any immediate issues that arise. I also spend time networking with other business owners and potential clients, as building relationships is crucial in our line of work. Afternoons might involve meetings. I try to allocate some time for checking on some of our deal books and I often end my day reflecting on what we’ve achieved and what needs improvement.

Sibusiso Nkosi: What are key things that small businesses should focus on when they are preparing themselves for funding?

Trudy Theledi: The scope is slightly broad but I think small businesses should focus on a few key areas when preparing for alternative funding. The most crucial is maintaining a healthy cash flow and accurate financial records. It is essential to demonstrate the business’s viability. Building a strong credit history can significantly improve chances of securing funding. Finally, but most often for traditional funding and VC and not necessarily debt capital for alternative funding, businesses should be ready to articulate how the funding will be used to grow the business and also benefit the community, as investors often look for social impact alongside financial returns.

Sibusiso Nkosi: How big is Venture Capital in South Africa? Would you say it is established or more needs to be done in that space?

Trudy Theledi: Venture capital in South Africa is growing but still relatively small compared to other countries. While there are established funds focusing on high-potential startups, more needs to be done to diversify the types of businesses receiving investment, particularly those led by black entrepreneurs. There’s a growing recognition of the importance of supporting emerging businesses, but the ecosystem still lacks sufficient funding options, mentorship, and networks that are crucial for scaling these businesses.

Sibusiso Nkosi: How can people get hold of you for assistance and what should they expect from your services?

Trudy Theledi: People can use our website www.investedge.africa, where we have dedicated pages to funding applications. Investors interested in being part of the ecosystem can also reach on the same platform. Otherwise, social media platforms like LinkedIn or reach out to our business development lead Naledi. We’re here to assist SMMES. So connect with us if you’re in need of funding sources, we have an ecosystem of partners that also provide mentorship.