The Secret’s to Successful Business Funding

At some point (or points) in time funding will be on the agenda for owners and directors of businesses across South Africa. Many delay or even avoid the application process. Sometimes framing their decision as a way to retain control or reduce risk. Or perhaps due to misconceptions about funder availability and access, onerous terms, or even a deeper misunderstanding of what funding truly enables.

For many entrepreneurs, especially in high-growth sectors like renewable energy, fintech, and B2B services, the cost of not pursuing funding should not be underestimated. In a market where speed and adaptability are critical, inadequate capital results in missed opportunities, slowed innovation, and constrained scalability that quickly erodes competitive advantage.

Fortunately, South Africa’s funding ecosystem is evolving. Alternative financing models such as Enterprise and Supplier Development (ESD), venture debt, and blended finance offer more flexible, founder-friendly pathways to growth, often preserving equity and reducing exposure.

This article aims to de-mystify the funding landscape for South African businesses and help unlock sustainable, scalable success by utilising the full spectrum of capital funding alternatives. 

Who gets funded?

The dynamics of business funding is a difficult topic to pin down because the permutations are endless depending on the size, nature and objectives of the companies and funders involved. One common denominator is that businesses (those that do seek funding), can leave money on the table. Either by not going for funding in the first place, through ineffective and poorly targeted applications, or in inefficient post-funding utilisation. 

And this does not only apply to SME’s. Take a look at this table: 

Access to Formal Funding by Business Size (South Africa, 2025)1

Enterprise Type

Funding

(av. requested)

Annual Turnover

% Accessing Formal Funding

Micro

≤ R1 million

≤ R5 million

12–25%

Small

≤ R5 million

 

≤ R25 million

 

Medium

≤ R50 million

≤ R100 million

40–55%

Large

> R50 million

> R100 million

75–90%

( 2025 South African MSME Access to Finance Report by Finfind in partnership with African Bank)

Key Insights:

SME’s

Struggle to raise capital — not due to lack of funders available, but due to fundability gaps and mismatches with traditional funding models

Solutions:

  • Improve financial documentation
  • Improve governance structures
  • Seek assistance for shallow or inexperienced teams
  • Enterprise and Supplier Development (ESD): Corporate-backed funding

Medium Enterprises

Have better access to finance but face challenges:

Key Challenges:

  • Collateral Requirements: lack the fixed assets needed to secure loans for expansion and product development
  • Complex applications and documentation: detailed financial statements, audited reports, business plans 
  • Limited tailored funding products: funding products miss the needs of medium businesses

Solutions:

  • Tailored funding: Structured repayments; Venture debt; Blended finance; Private Equity & Growth Capital (strategic support + funding); Government Grants & Incentives
  • Bridge and Working Capitals: Medium enterprises are not necessarily seeking large-scale capital. Around 30.8% of funding requests fall between R250,000 and R1 million, often for equipment or operational liquidity 
  • J/V’s and strategic partnerships

Large Enterprises

Enjoy strong access to structured finance via commercial banks, Development Finance Institutions DFIs, and capital markets (equity and debt markets, syndicated loans and corporate bonds). 

Opportunities:

  • Blended finance and impact-linked instruments combine grants, concessional loans, and commercial capital 
  • ESG-Linked Funding - sustainability-linked loans and green bonds currently with low awareness and uptake 
  • Large enterprises could play a catalytic role in the ecosystem by on-lending, partnering with SMEs, or co-investing in inclusive value chains

Access capital and turn funding into a growth engine

Whatever their size, most businesses will agree that the process to secure funding can be intimidating, and the wait for approval nerve-racking. That’s why Business Services and Outsourcing (BSO) has produced a guide to help businesses find the right place to apply and to get funding ready. 

In the BSO e-Book “Secret’s to Successful Business Funding” you will find a roadmap that bridges funding blind spots with clarity, and end-to-end structure that doesn’t assume prior knowledge. In the e-Book you will read and understand the challenges from A to Z, then learn how to improve your success rates:

  • Securing funding and the need for a strategic approach
  • The funding landscape, funder profiles. Where to go to find the right strategic fit
  • Overview of funding options with pros and cons for each funding type
  • How to align funding options against your business goals, stage, and risk tolerance
  • Tailoring your application to align with funder expectations
  • Getting fit for funding (financial projections and clear documentation)
  • Crafting a compelling narrative (pitch deck) tailored to funder needs
  • Timing. When to approaching funders and at what stage in your business growth
  • Building a winning application – the anatomy of a winning pitch deck"
  • Preparing for funding success – understanding due diligence requirements and negotiation 
  • Post-Investment risk and governance (regulatory compliance and stakeholder management)

Ready to scale your business?  Download your free e-book now:

https://www.bdo.co.za/en-za/services/business-services-outsourcing/the-secrets-to-successful-business-funding

BSO’s supports your funding application: 

Strategic preparation, expert guidance to land and optimize your application, and effective post-funding essentials for financial management and business growth.

A Smarter Way to Scale. Contact BSO today!

E Mail: bso@bdo.co.za

Call us toll free from within South Africa: 087 503 5276 (BSO)