
What is an SME?
How the world defined SMEs
A comprehensive definition of an SME in South Africa is a small to mid-size enterprise (SME) with the following key attributes:

Fact Box
Globally, SMEs represent 90% of businesses who contribute to more than 50% of employment*
Formal SMEs contribute up to 40% of GDP in emerging economies
In South Africa, SMEs employ 47% of the workforce and contribute slightly more than 20% of the GDP
Fact Box
Globally, SMEs represent 90% of businesses contribute more than 50% of employment*
Formal SMEs contribute up to 40% of GDP in emerging economies1
In South Africa, SMEs employ 47% of the workforce and contribute slightly more than 20% of the GDP2
How KISBY defines SMEs
The lifeblood of our economy, able to create jobs, improve standards of living, innovate and increase competition in a country undergoing an economic crises.
SME’s:
• Participate in production gaps not filled by larger entities
• Create and sustain economic growth
• Employ the largest share of our population
The sector provides a “compelling, largely untapped market opportunity” for innovative funders who are able to develop new lending models and risk assessment tools tailored to address the challenges of this complex and burgeoning market.
Access to funding and support services
SME’s Funding Sources:

SMEs are not able to secure the funding and support they require to kick start their contribution to economic activity:
Unfavourable funding skews | Large banks account for 20% of the funded SMEs, followed by business incubators at 24%, while friends and family accounting for 50% of the funded SME population |
Unreasonable funding rates | Predator funders charge astronomical rates, stifling the financial position of the SME |
Longer lead times | Bank funding has an estimated 12 week turnaround period |
Hurdles to success | Added bureaucracy makes access to bank funding extremely difficult for SME’s |
Irrelevant ratings | Banks also use traditional sources of information and rating criteria that don’t focus on small businesses |
Insufficient support structures | Government and private sector initiatives are insufficient to curb the effects of Covid19 on local SMEs |

*Loan Rate is calculated based on the three-tiered risk assessment approach of Moody’s, TransUnion and proprietary DSC risk scoring metrics
Salient features
Kisby’s vision is to provide unique and innovative capital funding to SME’s.
Kisby provides funds to SMEs through an online loan platform underpinned by a debt marketplace – 4AX Debt Services.
Kisby promotes its objectives and attracts borrowers through the most established media house in South Africa.
With impact capital provided by the Impact Capital Investor, Kisby will provide affordable funding solutions to South African SME’s.
Kisby aims to raise and deploy 3 – 4 times the value of the initial impact capital.
Kisby saves local companies and jobs whilst generating returns for its investors.
Kisby utilises technology to solve the administration of a mass lending solution.
Kisby creates success through a multi-faceted borrower support package.