Women led transformation bridging the SMME funding gap
Johannesburg, 19 March 2026 – A South African impact investment fund is demonstrating how targeted capital, coupled with hands-on support, can unlock growth for small and medium-sized businesses while advancing gender inclusion and economic transformation.
Positioned between early-stage venture capital and large institutional funding, the fund focuses on businesses that generate revenue but require structured support to reach profitability and scale.
“Over the past five years, we have invested approximately R49.5 million into a portfolio of businesses, with assets under management currently valued at around R72 million. Beyond capital, provide intensive post-investment support, including governance structures, financial management, and strategic guidance, enabling entrepreneurs to become investment-ready and access larger funding pools”, says Welleminah Mdinisa, Fund Manager for WDB Entrepreneur Fund.
A key focus has been on expanding opportunities for women in business both through direct ownership and leadership representation. To date, 60% of the fund’s portfolio companies are women-owned, with a significant portion black women led, while the broader investment strategy has driven transformation across management structures and job creation.
Entrepreneur Fund.
“The fund has supported 17 businesses, created over 178 jobs, and retained approximately 80% of these roles despite the post COVID-19 economic impact. We had initially set out to invest exclusively in black women-owned businesses, but quickly realised there was deep mistrust around equity funding, with many entrepreneurs fearing loss of control. That forced us to rethink our approach and expand our mandate to support all businesses and actively transforming leadership structures to ensure greater inclusion,” said Mdinisa.
The investment model applied typically spans a minimum of five years, allowing businesses to position themselves, stabilise and reach profitability to attract larger-scale investment or acquisitions. In several cases, entrepreneurs have successfully bought back equity stakes after achieving sustainable growth and momentum.
“Our role is to bridge the ‘missing middle’. These are the businesses that are too advanced for venture capital, yet too small for large institutional funding. Beyond providing capital we build the governance, systems and strategic direction needed to make these businesses investable and profitable,” says Mdinisa.
While the fund has delivered measurable success, including strong returns from certain portfolio companies, it also highlights the structural challenges facing South Africa’s small business ecosystem and limited private sector participation remains a key constraint.
“The discontinuation of Section 12J tax incentives in 2021, which previously encouraged private investment into small businesses, has had a notable impact on capital flows into the sector. We have since seen a significant reduction in private sector appetite for small business investment which is negatively impacting the collaborative mobilisation required to ensure the success of emerging SMMEs in the country. If we are serious about inclusive economic growth, we need similar incentives to crowd in private capital and support the businesses that drive job creation,” said Mdinisa.
Despite these challenges, the WBD Entrepreneur Fund continues to pursue both financial returns and social impact, investing in businesses that contribute to economic participation, innovation, and community upliftment.
As South Africa looks to strengthen its entrepreneurial ecosystem, the fund’s model offers a practical example of how blended capital and targeted support can deliver both commercial viability and meaningful socio-economic outcomes.
About WDB Investment Holdings
Founded in 2015 through a partnership between WDB Investment Holdings an investment company rooted in empowering rural women and Grovest, a specialist corporate governance and advisory firm, the WDB Entrepreneur Fund has established itself as a catalyst for economic transformation in South Africa. Originally launched as a Section 12J venture capital vehicle, the Fund successfully transitioned into a conventional private investment company in 2025, broadening its mandate to seize new opportunities while maintaining its core commitment to Enterprise Development.
In 2022, the Fund welcomed a new management team to steer its strategic direction, bringing fresh expertise in early-stage investing and impact fund management. Throughout this transition, WDB Investment Holdings has remained a significant and committed shareholder, preserving the Fund’s founding vision of advancing women and youth entrepreneurs. Today, the Fund strategically invests in high-potential SMEs that are the backbone of the South African economy. It specializes in identifying and nurturing businesses that align with the country’s pressing needs from sustainable agriculture and renewable energy to innovative manufacturing and digital infrastructure. The Fund is distinguished by its gender-lens investing approach, targeting a portfolio where a significant majority of investments are in Black-owned, women-led, or youth-owned enterprises. Beyond capital, the WDB Entrepreneur Fund provides its portfolio companies with rigorous governance support, strategic mentorship, and access to a powerful network of industry partners.
