SMME's PR
Award-Winning Impact Funders
By Thalissa Pillay, Head of Growth at Sourcefin
South Africa’s small and medium enterprises (SMMEs) are more than a category of businesses. They are the engine of national economic growth, the creators of work, the innovators behind local economies and the drivers of change for countless communities. Their success is central to the country’s future, yet too many remain locked out of the finance they need to grow and succeed.
This year, Sourcefin was recognised nationally as both an NSBC Top 20 South African Small Business Award Winner and National Funder. The recognition is significant for us as a five-year-old business, but its real meaning lies in what it represents.
This award belongs to the more than 1 000 SMMEs that have trusted Sourcefin to help them deliver on their purchase orders and payments and realise their full potential.
Over the past five years, Sourcefin has deployed more than R2.6 billion in funding to South African SMMEs. At a time when entrepreneurial resilience is being tested and traditional finance remains out of reach for many, this capital has been catalytic. It has enabled entrepreneurs to deliver against contracts, secure new opportunities, build credibility, hire employees, and in many cases, create meaningful change in their communities.
Small businesses carry the weight of South Africa’s economy
The data is indisputable. According to the 2025 FinFind Access to Finance Report, SMMEs employ 60 percent of South Africa’s workforce and contribute close to 40 percent of our GDP. They produce 75 percent of new jobs and remain the most effective lever for economic inclusion.
Yet the majority of SMMEs remain unfunded or underfunded.
In addition:
- More than 85 percent of SMME funding applications come from businesses earning less than R1 million a year
- 57 percent have no collateral
- Fewer than 20 percent have ever accessed formal business finance
Many are rejected not because they lack potential, but because traditional funding criteria were not designed for their realities. Cashflow is irregular. Paperwork is incomplete. Business and personal finances overlap. Business owners often fund operations using personal credit or family loans, which damages affordability scores and traps them further outside the system.
This is the gap Sourcefin was built to close.
Why Sourcefin’s model works
Sourcefin prioritises fit-for-purpose funding that focuses on the future. Instead of looking at balance sheets, collateral or retrospective credit scores, we look forward to the opportunity and potential of the business. If an entrepreneur has a confirmed invoice or purchase order (in the private or public sector), has been awarded a tender or contract, the supplier of which passes our vetting process, then they qualify as a credible applicant for funding.
This approach has opened doors for businesses that would ordinarily not receive support. It has also proven that alternative funding is not only viable but essential for SMME growth.
Our funding has reached entrepreneurs in construction, education, retail supply chains, agriculture, logistics, manufacturing, healthcare, technology and more. These are the sectors that keep our country moving, often invisibly and often under immense pressure.
When funding works, impact becomes visible
Across the country, Sourcefin-funded SMMEs have delivered projects that illustrate the true multiplier effect of accessible capital. These stories show what happens when entrepreneurs are supported along the value chain and receive the financial backing that they need to deliver.
In the North West, one of our clients secured a tender to supply wheelbarrows to a rural community. The wheelbarrows were a simple tool but transformative for households that previously had to carry heavy groceries long distances – think Mr Delivery but for the rural everyman. Funding allowed the entrepreneur to deliver immediately and, in turn, helped strengthen the dignity and daily lives of dozens of families.
Another client supplies a specialised cool-coating technology that reduces internal building temperatures. With Sourcefin’s support, they secured and executed contracts to refurbish one of the country’s largest retailer’s store rooftops. The impact was national. The cooling effect reduced electricity usage, improved working conditions, and demonstrated how SMME innovation can meaningfully shift environmental performance at scale.
In a long-term partnership, Sourcefin funded a supplier responsible for feeding schemes across 13 schools. School feeding programmes rely on precise timing. When cashflow falls short, children go hungry. Through 25 consecutive deals, we helped stabilise the client’s operations so that thousands of learners received reliable meals every week, regardless of payment delays from upstream partners.
These are just a few stories that demonstrate that SMMEs are not just economic contributors. They are builders of safety, dignity, social stability and community resilience. Their impact stretches far beyond revenue numbers.
A sector on the brink of transformation
FinFind’s latest analysis shows that South Africa is entering a new era of SMME finance. The number of active funders has increased significantly in the last five years, adding more than 180 new firms and over 600 funding products to the market.
This shift reflects a shared national understanding; South Africa cannot grow without entrepreneurial success. And entrepreneurial success cannot happen without accessible, context-aware, flexible funding models and partners.
However, the country still faces a R350 billion funding gap. Bridging it requires more than capital. It requires collaboration, data sharing, better credit models, supportive policy and partnerships across the private and public sectors. Sourcefin is committed to playing its part.
Building our nation one deal at a time
At Sourcefin, we are thrilled to be recognised amongst some of South Africa’s changemakers. The award from the NSBC is an affirmation of the work entrepreneurs are doing across the country and the role that alternative funding can play. SMMEs are the ones building South Africa in real time. Our role is to enable their progress and remove the barriers that slow them down.
At Sourcefin, we will continue to look for purpose-driven, tech-enabled, open-minded funding solutions that meet the needs of SMMEs, with understanding. We are committed to partnering with them for long-term growth, offering support and services that extend beyond a financial transaction. And we will continue championing the forgotten SMME, because their success is not optional. It is essential to South Africa’s future.
For more about Sourcefin’s innovative approach to financing, visit:
