The Edge Action Fund Investing in businesses of any size

Maximising the
socio-economic impact
of medium-sized companies
Edge Action Fund

For companies with ED budgets of less than R15 million, Edge Growth manages our in-house fund, Edge Action.

 

The fund was established by Edge Growth in 2011 to provide medium-sized corporates and other businesses with a reliable vehicle for their Enterprise and Supplier Development contributions; one that maximises the socio-economic impact of their contributions through responsible investment and ensures that companies remain compliant with the requirements of the revised Codes.

The fund was designed to address the shared challenges confronting these businesses in the implementation of their ESD initiatives:

  • insufficient resources to perform well in ESD
  • insufficient budget to have skilled in-house resources
  • insufficient budget to establish a separate standalone ESD fund and programme
  • no access to suitable SMEs for their contributions (growth-geared beneficiaries)
  • time constraints and the threat of not meeting compliance requirements in time for the financial year end

The Edge Action Fund Trust is a pooled fund that combines the contributions of all investors in the form of either ring-fenced or non-ring-fenced agreements.

 

Growth funding of up to R1 million is channeled into high-potential SME beneficiaries who receive on-going non-financial growth support post-investment to ensure that they remain on a path towards sustainable growth and the long-term success of business operations.

Since inception the Edge Action Fund:

  • has provided funding and growth support to 10 SMEs
  • has increased the average revenue of investee SMEs by 74%
  • has created 140 direct and indirect jobs in a 2-year period

 

The Edge Action Fund is a great solution to companies where finding
and developing core suppliers is not core business. The fund ensures
that ED budgets are used well, and creates the positive impact intended by the Codes.
– Jean Lindsay, Autozone

BENEFITS IN BRIEF

  • immediate ED and SD points
  • cash efficient solutions reducing the total cost of ED and SD
  • social impact by working with sustainable SMEs which create sustainable jobs
  • no additional cost for companies
  • can deliver a fully customised solution if required
  • fully aligned to the letter and spirit of ED
  • allows investors to focus on their core business whilst adhering to B-BBEE compliance
  • investors have access to marketing material and regular updates
  • provides peace of mind through good governance and accurate reporting

 

STRAIGHT TO YOUR DOOR – QUICK CAPITAL PUTS DELIVERY SERVICE ON THE ROAD TO SUCCESS

Requirement:

Straight to Your Door was established in 2010 to deliver fresh bread to households in Alexandra township. Without his own vehicle, Chris travelled on foot or used public transport to distribute to his customers and his capacity was severely limited to what he could carry.

Solution:

Edge Action financed the purchase of a delivery vehicle.

Results:

The business has expanded to include Tembisa and Rosebank and now also delivers cold meats, sandwich fillers and airtime to households, spazas and schools. Additionally, Straight to Your Door supplies fresh bread and fruit to the Lunch Box Fund, a non-profit organisation that provides a daily meal to disadvantaged students. Revenue has since increased by 102%, and profits by 94%. Five new jobs have been created and operations continue to help other businesses in the community that would otherwise be unable to sustain their trade independently.

Straight to Your Door


High potential SME gains access to finance and growth support resulting in business generating a profit and doubling turnover.

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Funding enables SME to better-service the increasingly growing demand of its clients and creates 4 more jobs in the process.

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SME Support transforms floundering business into sustainable enterprise.

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