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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
diversification.

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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