STANDARD BANK BUSINESS DAY TV SME SUMMIT Nadia Oshry Senior - - PowerPoint PPT Presentation

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Aug 26, 2023 27 likes •150 views

STANDARD BANK BUSINESS DAY TV SME SUMMIT Nadia Oshry Senior Manager: Moonshots REDUCING POVERTY & UNEMPLOYMENT Is becoming increasingly difficult in our current economic climate GDP growth remains low and flat South African Unemployment

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STANDARD BANK

Nadia Oshry Senior Manager: Moonshots

BUSINESS DAY TV SME SUMMIT

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REDUCING POVERTY & UNEMPLOYMENT

Is becoming increasingly difficult in our current economic climate

South African Unemployment rate

SOURCE: TRADINGECONOMICS.COM | STATISTICS SOUTH AFRICA

2008 2010 2012 2014 2016 2018 20 22 24 26 28

GDP growth remains low and flat

2008 2010 2012 2014 2016 2018

2 6

SOURCE: TRADINGECONOMICS.COM | STATISTICS SOUTH AFRICA

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WE KNOW INTUITIVELY

That small business growth is key, but the funding landscape is a mixed bag…

Study of SMEs (2017):

87% self-funded
8% family
2% angel funding
2% bank loans
1% development finance institutions

…and skills, market access remain major challenges

FINFIND SME STUDY; VENTURE CAPITAL RESEARCH

2015 2016 2017 2018

Funding Amount Deal Count

125 153 201 458

185 Mn 129 Mn 203 Mn 725.6 Mn

Venture capital investments in Africa

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FINTECH BIG TECH

VS

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With an interesting subtitle

How Uber’s first self-driving car works

GROWING COMPANIES HAVE A CONFLICT BETWEEN EFFICIENCY & EMPLOYMENT

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SO WHAT ARE CORPORATES DOING IN THE SPACE?

In SA, we focus heavily on supplier development

FINEXTRA BASED ON 2016 DATA

20% 20% 10% 7% 43%

Launched

wn FinTech

subsidiaries Acquired FinTech companies Set up venture funds to fund FinTech companies Startup programs to incubate FinTech companies Partnering with FinTech companies

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We need to invent new business models which align the incentives of corporates and start ups in order to help SMEs grow so that we drive growth and create jobs

So how are we thinking about this space?

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Founders Factory UK raised £50M to build over 225 innovative technology companies

Beauty Media Travel EdTech Retail FinTech AI

Team of 70

Accelerator +160 startups Incubator +60 startups

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FOUNDERS FACTORY AFRICA

Scale 140 disruptive tech businesses over 5 years in Africa and enhance the start up culture in key African cities

4 Corporate investors Full time team of 40 specialists Scale 140 businesses over 5 years

Investor 1 Investor 2 Investor 3

40 100

UX/UI, Product Development, Engineering, Investment, Growth Marketing

? ?

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Founders Factory is but one example…with a change in mind set and through innovative new business models, large corporates can contribute to scaling start ups resulting in growth and job creation

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