Business Partners launches Basadi Fund to close gender financing gap

The GEM SA Special Report: Women’s Entrepreneurship in South Africa (2024) shows that women entrepreneurs are exiting their businesses at higher rates than they are starting and running them, with access to finance emerging as a key driver of this attrition. Around 21.5% of women entrepreneurs cite difficulty in securing funding as a primary reason for business failure, compared to 17.2% of men, and women-owned firms are less likely to scale to 20 or more employees than those owned by men.​

To help address this gap, Business Partners Limited has launched the R90 million Basadi-Women Growth Fund, a dedicated facility providing tailored business finance from R250 000 to R5 million for women with viable formal small and medium enterprises who may not qualify for traditional finance. The fund is aimed at supporting growth-focused women-owned SMEs to scale and achieve sustained success, rather than only surviving in the early stages.​

Business Partners regional investment manager René Botha notes that South African women face higher unemployment and lower average education levels than men, and these inequalities are reflected in entrepreneurship, where only about 4.1% of women own established businesses compared to 7.9% of men. Limited access to finance does not only threaten business survival; it also slows growth, with only 4.9% of women’s ventures reaching 20 or more employees versus 11.8% of men’s ventures.​

The Women Entrepreneurship in SA findings show that lack of profitability is the leading reason both men and women exit their businesses, but women are more severely affected (34.4% vs 21.5%). Gender-specific barriers then emerge, including family and personal responsibilities and difficulties in accessing finance, which rank as major reasons for women, while men are more likely to exit due to opportunities to sell or pursue new ventures.​

Botha stresses that an inclusive entrepreneurial environment requires more than capital, and that women need access to networks and mentorship alongside funding. She argues that systemic issues such as gender stereotypes, caregiving responsibilities and how finance applications are assessed can disadvantage women business owners unless a deliberate gender lens is applied.​

The Basadi-Women Growth Fund is structured to address some of these barriers directly. Finance can be used for a range of needs, including property acquisition, working capital, equipment or asset purchases, acquisitions or takeovers, replacement finance, or buying into viable start-up franchises. Pricing is competitive and terms are designed to support sustainability and growth, with flexible features such as interest capitalisation or a repayment moratorium of up to six months for qualifying women-owned businesses.​

To qualify, borrowers must be private companies or close corporations that are at least 50% women-owned and operated, with annual turnover below R20 million. In addition to finance, the fund offers technical support, networking and mentorship opportunities to tackle deeper structural barriers that hinder women’s business growth.​

Business Partners frames the Basadi-Women Growth Fund as a vehicle to drive greater participation of women in entrepreneurship and, in turn, to contribute to broader economic and social benefits. Increased involvement of women in business is linked to job creation, wealth creation and social impact, as many women entrepreneurs are motivated by a desire to improve their communities.​

Women entrepreneurs interested in the Basadi-Women Growth Fund can apply online, where full criteria and required documentation are listed. Applications are submitted via the Business Partners Limited website at: https://www.businesspartners.co.za/basadi-women-growth-fund/.