While an early stage funding gap is anecdotally acknowledged, there has been little research into the experience of early stage social enterprises raising funding in South Africa. There is a dearth of impact capital available for early stage social enterprises. South Africa is the largest market for impact investing in Africa but a minority of funding reaches early stage businesses. Less than two percent of capital has gone to investments with ticket sizes under $1m.

To investigate the funding gap from an enterprise perspective, the Bertha Centre for Social Innovation and Entrepreneurship at the UCT GSB surveyed 162 social entrepreneurs across South Africa to better understand:

  • Their demographics, education and impact goals
  • Their business models and strategies
  • Their barriers when raising funding
  • Their experiences raising different types of funding
  • Future fundraising and growth plans
  • The gaps and opportunities in the early stage ecosystem.The report can be downloaded from the Bertha Centre for Social Innovation and Entrepreneurship website, here.