Page 9 - Noble Magazine: November-December 2020
P. 9

                                                                                                   on the COVER

                            Letshego Increases its

                  Support for Micro and Small

                     Entrepreneurs through its

                            Strategic Partnerships

                 Micro and Small Entrepreneurs Face an             Letshego’s quick turnaround times enable Micro and Small
                 Uneven Playing Field                              Entrepreneurs  with  additional  cash  flow  management
                                                                   support, with access availabe either digitally or from any one
                           icro and Small  Entrepreneurs  (MSEs),   of Letshego’s 16 branches across Botswana.  Letshego views
                           particulary   those   operating in the   the  facilitation of sustainable  growth for Micro and Small
                           informal  sector, constitute the vast majority   Enterprises  as a key priority and a credible  path towards
                M of businesses in most developing countries       achieving its ambition to create a world-class retail  financial
                 in Sub Saharan Africa and represent a key sector for   services organisation.
                 driving  economic  diversification  and  sustainable  growth.
                 According to the World Bank, prior to the pandemic, Micro   Letshego Innovation Pitch Day
                 and Small Enterprises makes up approximately 35% of   enables financial innovations through
                 GDP and contributed 75% to formal sector  employment   partnerships with Micro and Small
                 in Botswana. Micro and Small Enteprises thus provide    Entrepreneurs
                 valuable economoic potential for this country, to support
                 poverty  eradication, employment and economic

                 For MSEs, cash flow remains one of the biggest challenges,
                 and  often  the  main  reason  why  many  small  businesses
                 fail within the first two years of starting up. The cash flow
                 shortages experienced by Micro and Small Entrepreneurs
                 are exacerbated by barriers to accessing finance, potentially
                 leading to solvency problems. Typically, Micro and Small
                 Entrepreneurs  find  it  difficult  to  obtain  bank  loans  and
                 instead rely on internal funds, or cash from friends and
                 family, to start up and initially run their enterprises.

                 Letshego’s Purchase Order Finance

                 To  increase  support  for  Micro and  Small Entrepreneurs,
                 Letshego  Botswana  recently  doubled  their  borrowing
                 limit  from P1,000,000 to  to P2, 000 000, increasing the
                 opportunities for MSEs to fund stock, growth and project   In partnership with the Botswana Innovation Hub (BIH),
                 needs. Purchase Order Financing is a valuable  source  of   Letshego recently hosted a successful Pitch Session
                 bridging finance or financial support and provides a lifeline   involving 8 technological business innovators. The
                 for Micro and Small Entrepreneurs to access new sources of   session offered the innovators a chance to showcase their
                 business.                                         works and enabled Letshego to single out the outstanding

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