About Catalyst for Growth
Catalyst for Growth, a non-profit organisation based in Johannesburg, that has developed an analytics platform for business development support (BDS) providers serving small-medium-and micro-sized enterprises (SMMEs).
The introduction of the platform is intended to increase the quality of business development support (BDS) in the market, reward the best service providers, and help link SMMEs to growth capital.The data will improve SME services and allow the investment community to decrease costs associated with sourcing SMMEs, while directing enterprise development and supplier (ESD) capital into high-achieving programmes.
Catalyst for Growth is designed to connect key players in the BDS marketplace and channel capital towards BDS providers that help SMMEs become truly investment-ready:
Catalyst for Growth will publish non-attributable demographic and performance data for BDS providers and the SMMEs in their programmes. Data will be collated by BDS providers and submitted to Catalyst for Growth, who will verify a sample of this data with the SMMEs. SMMEs who are seeking finance will also have the opportunity to request that their information be shared with investors.
The Catalyst for Growth platform not only enables registered BDS providers to capture data and monitor the performance of their own SMME portfolios but also to compare their performance against the industry average, enabling them to see the impact they are having in the ESD space and will enable SMME investors to identify finance ready SMMEs.
Catalyst for Growth is currently looking for interested BDS providers to sign up onto the platform, and start monitoring their SMMEs.
How does Catalyst for Growth create value for the SME sector?
Entrepreneurs in BDS programmes on the platform will be better positioned for investment, which Catalyst for Growth can help to secure. SMEs will also avoid the risk of overinvesting time in BDS programmes that are lower-impact or poor fits.
Corporates and other buyers of BDS gain access to a simple, free way to increase the impact of ED investment. When supporting SMEs in the supply chain, high-quality BDS will help ensure reliability, survival and resilience.
BDS providers will be able to publish strong results that can help to attract new clients, clearly distinguishing them from low-quality providers in the market. A set of standardised evaluation criteria will also give BDS providers a set of concrete metrics by which to improve their outcomes.
Investors, in addition to their role as buyers of BDS, will be provided a pipeline of investment-ready SMEs that have received high-quality BDS, reducing or eliminating the need for pre-investment BDS. Investors will be able to use the database to quickly screen for SMEs that meet their investment criteria.