NEWSWIRETODAY Press Release& Newswire Distribution | HOME
MOST TRUSTED NEWSWIRE PRESS RELEASE DISTRIBUTION
PRTODAY / NewswireToday press release distribution service network
Written by / Agency / Source: GroFin
Check Ads Availability|e-mail Article

Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

Over 4,800 Small Business Jobs in Five Years with GroFin Approach - Small and medium enterprises (SMEs) supported by GroFin are creating significant value in the marketplace through creating jobs and benefitting  surrounding communities
Over 4,800 Small Business Jobs in Five Years with GroFin Approach

 

NewswireToday - /newswire/ - Pretoria, Gauteng, South Africa, 2009/11/27 - Small and medium enterprises (SMEs) supported by GroFin are creating significant value in the marketplace through creating jobs and benefitting surrounding communities.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Environment / Recycle Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

In the five years since its inception, the company has provided a unique combination of finance and dedicated business expertise to over 160 SMEs across Africa. To date, the growth of businesses under this integrated approach has resulted in over 4,800 personnel being employed by companies in its investment portfolio.

The figures illustrate that GroFin has created and maintained an average of 30 jobs per transaction, the benefits of which are felt far beyond the business itself. Using the IDC / DBSA beneficiary formula, an estimated 77,200 people benefit indirectly from the USD$ 62.8 million of funds currently invested. Over a quarter of those benefitting from the jobs being created and maintained are women.
These figures are a testament to the ability of SMEs to have a long-lasting development impact on local communities. As businesses grow and jobs are created, each business serves as an efficient vehicle of economic growth.

It also provides evidence that GroFin’s pioneering business model is successfully serving the needs of capable business owners through its provision of appropriate finance and ongoing business support.
Although the contribution of SMEs to growing local economies is unquestionable, the SME sector has historically constituted a gap in the financial services market. GroFin refers to this asset class as ‘Growth Finance,’ in which fund managers such as itself specialise in the financing and development of start-up and growth enterprises that are entrepreneur-owned and run.

A new asset class has called for a different approach. Traditional financiers offer finance directly related to the collateral offered by the business owner, with the capital provided by the business owner addressing the risk of the transaction should the business not succeed. However, this dictates that the criteria for investment are volume-driven and inflexible, and little support other than finance is provided.

Such criteria have eliminated a wealth of African SMEs who lack the business skills, track record and collateral necessary to be financed. Whilst individual and smaller businesses are able to obtain microfinance and larger mature companies can access finance via Private Equity or corporate lending, the Growth Finance market remains underserved.

In contrast to traditional financiers, GroFin addresses the needs of the SMEs through viability-based lending, in which neither collateral or a track record is a pre-requisite. Higher value is placed on the entrepreneur’s abilities and the business’s potential, with collateral playing a supporting role and existing as part of a risk-reward relationship.

To mitigate the added risk of supporting a business owner with limited collateral and experience, GroFin forms an ongoing partnership between itself and the entrepreneur. The resulting understanding of the business and the support of its financial and development needs increases the business’s chances of long-term profitability and growth. This success of this model is translated into attractive financial returns, and a suite of social returns, including job creation.

Jurie Willemse, Managing Director of GroFin said: “The African business sector represents an exceptional investment and development opportunity at this time and has illustrated resilience through the economic crises. There are an ever growing number of entrepreneurs in Africa looking to start and grow companies and our viability based model - specifically developed for the African market - makes real returns possible in a segment that is overlooked by most investors.
The performance of GroFin’s model attests to the future of Growth Finance as an attractive asset class that can deliver sustainable financial, social and economic results within a sector few thought of as financially viable.”

In August, GroFin (grofin.com) announced the final closing of the GroFin Africa Fund at US$170 million against a target of $150 million. This will be invested in approximately 500 companies in the 7 African countries it operates in, over a period of five years, making it the largest Growth Finance fund to date globally.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Environment / Recycle Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: GroFin

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick NewswireToday Visibility Checker

 

Distribution / Indexing: [+]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Environment / Recycle articles,
CATCH Visitors via Your Competitors Announcements!


Over 4,800 Small Business Jobs in Five Years with GroFin Approach

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name NewswireToday and LINK as the source.
 
Publisher Contact: Amy Heydenrych - GroFin.com 
+27(0)12 998 8280 amy[.]grofin.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any GroFin securities in any jurisdiction including any other companies listed or named in this release.

Environment / Recycle via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY

Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From GroFin / Company Profile


Read Environment / Recycle Most Recent Related Newswires:

ANDRITZ Presents Comprehensive 'We Care' Sustainability Program
Companies Start Partnership for Sustainable Lithium Mining in Chile
Technology-powered Circular Economy to Propel Waste Management in the Gulf Cooperation Council Finds Frost & Sullivan
Uzin Utz and BASF Cooperate on Climate Protection
Materials Are Key to Meeting the Growth in Demand for Li-ion Batteries Finds Frost & Sullivan
Alstom’s Local Sustainability & CSR Approaches Receive Global Recognition
Frost & Sullivan Awards Top Water Management Solution Recognition to the PI System
Caterpillar and Certarus Sign Memorandum of Understanding to Explore Lower Carbon Energy Solutions
BASF, Quantafuel and REMONDIS to Cooperate on Chemical Recycling of Plastic Waste
Advanced Recycling Technologies and Collaborative Solutions to Lead the Transition to Circular Economy in Plastics Says Frost & Sullivan
Frost & Sullivan Experts Analyze Regional Tactics for Water and Sanitation for All by 2030
ABB Digital Solutions, Process Expertise and Data Analytics Built into New Paper Industry Research Project with Climate Protection Target
Smurfit Kappa’s Vitop Plant the First to be Certified ISCC PLUS
Smurfit Kappa First FTSE 100 Company to Gain Five Stars in Recognition of its Support of United Nation’s Sustainable Development Goals
Tesco Partners with Mondi to Close the Loop for Shopping Bags from Retailer's Own Paper Waste

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  BizJobs.com

Visit  La Bella Bakery Artisan Bakery Arizona





 
  ©2021 NewswireToday — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com newswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are proudly NOT affiliated with USA TODAY (usatoday.com)