I recently dusted off one of my old textbooks, Essentials of Corporate Communications, and got stuck on the opening paragraph of the introduction:
“Communication is the lifeblood of all organisations: it is the medium through which companies large and small access the vital resources they need in order to operate. It is through communication that organisations acquire the primary resources they need (such as capital, labour, and raw materials) and build up valuable stocks of secondary resources (such as ‘legitimacy’ and ‘reputation’) that enable them to operate.”
This made me reflect on Decusatio’s journey since 2019. Our original slogan, “We help entrepreneurs with access to finance and access to markets solutions”, perfectly described the problem we wanted to solve through communications, but we discovered something revealing when we used this language. Unfortunately, the very entrepreneurs who needed these solutions most couldn’t immediately see how we could help them through communications.
The SME landscape in South Africa
At a recent Old Mutual presentation, the SMEgo team unpacked the SME landscape in South Africa. For context, SMEgo is Old Mutual’s SME-focused digital platform that connects entrepreneurs with funding and business support. They highlighted that in 2024, there were approximately 2.5 million SMEs in the country, with 70% operating in the informal sector. The key challenges faced by SMEs that they identified included:
- Limited access to funding
- Inefficient business processes
- Poor financial management
- Access to new markets
- Employee management and retention
- Business disruption protection
Looking at these challenges and listening to the solution, I couldn’t help but wonder: Do SMEs really need another digital solution, or should we instead focus on improving their communication skills?
The power of communication in unlocking opportunities
Many of these challenges, whether accessing funding, attracting customers, or managing employees, boil down to effective communication. A well-articulated business proposal can open doors to funding. A compelling value proposition can attract new markets. Clear internal communication can improve employee retention.
Yet, communication is often overlooked in favour of tech-driven solutions. While digital tools can streamline processes, they don’t replace the need for strong messaging, negotiation and relationship-building.
Becoming “funding ready” requires more than just good record-keeping
One of the biggest hurdles SMEs face is securing funding and one of the biggest reasons is their funding readiness. In a South African context, many small businesses struggle with even the most basic record-keeping – a fundamental requirement for any funding application. While adopting digital accounting tools and establishing proper financial systems is the crucial first step, this alone doesn’t guarantee funding success. Clean books open the door, but it’s how an SME communicates its financial health and growth potential that ultimately convinces lenders and investors to say ‘yes.’
So, besides good record keeping, here are a three things SMEs should keep in mind when applying for funding:
- Investor and lender perceptions matter: A well-prepared financial statement is useless if the business owner can’t confidently explain cash flow, projections or risks.
- Narrative over numbers: Lenders and investors don’t just fund spreadsheets; they often fund stories. SMEs must articulate their business model, scalability and market opportunity clearly.
- Tailor pitches for different stakeholders: Think about how you naturally adjust your language when speaking to different audiences – you wouldn’t use the same approach to convince your child to eat vegetables as you would to persuade a friend to invest in your business idea. Yet many SMEs make this exact mistake when seeking funding.
A bank loan officer needs to see risk mitigation and steady cash flow, while an angel investor wants to hear about disruptive potential and market opportunities. The same business, the same numbers, but two completely different conversations. Too often, entrepreneurs use a one-size-fits-all pitch, missing these crucial nuances that could make the difference between rejection and funding.
Even with the best digital tools, poor communication silently sabotages opportunities: loan applications get rejected despite viable businesses when the case isn’t presented compellingly, partnerships slip away because of fuzzy value propositions and grant opportunities vanish into thin air when proposals lack persuasive storytelling.
The brutal truth? In today’s competitive landscape, what you say matters as much as what your numbers show.
Final thought: Communication as a competitive advantage
While digital tools have their place, communication remains the foundation of business success. SMEs that invest in sharpening their messaging, whether for investors, customers or employees, will find it easier to overcome common barriers.
Unfortunately, not every business owner is a natural communicator and that’s okay. You don’t have to figure it all out alone. We are here to help!
At Decusatio, we specialise in Investor and Stakeholder Communications, helping SMEs:
• Articulate their value with investor-ready pitches and financial storytelling
• Structure compelling narratives for grants, partnerships and market expansion
• Elevate their media presence to become featured industry voices