Mentorship Programme

Mentorship Programme

The Khula Mentorship Programme

Khula provides both pre and post loan mentorship to small and medium size enterprises. The actual provision of mentorship services is done by independent mentors/business advisors that are skilled in their respective areas of specialisation.

Khula's Mentors

Khula sources its business mentors from a database that is maintained by the Institute of Business Advisors of South Africa (IBASA). IBASA specializes in the selection and accreditation of mentors/business advisors. Both Khula and IBASA have entered into a service level agreement with the primary purpose regulating and managing the provision of business advisory services to the SME sector. Khula's Regional Offices has the authority to enter into service level agreements with individual bona-fide IBASA members.

Pre-Loan Mentorship

This phase of mentorship is geared towards assisting aspiring entrepreneurs with potentially feasible business ideas to package viable business plans with a purpose of submission such plans to Khula's financing partners for funding.

Khula will only consider applications for business plan development, that have the following credentials:

A feasibility study that demonstrates the viability of the business idea.
A comprehensive and well researched marketing plan.
Applicants need to possess some level of experience in their proposed business venture.
A minimum equity contribution as defined by Khula's financing partners.

Application Procedure: Pre-Loan Mentorship

STEPS

Aspiring SMEs approaches a Khula Regional Office for an initial basic assessment.

Khula's Regional Office conducts an initial assessment in accordance with pre-determined qualifying criteria and communicates the final decision (whether or not to continue with the application) to the applicant.

In the event of an application being successful in STEP 2 (above), Khula's Regional Office will then commission the development of a business plan. This step will involve the appointment of a mentor to facilitate the business plan development assignment. The applicant will be expected to pay a leading role in the whole business plan development process. Terms of reference detailing the whole process will be signed by Khula, the mentor and the mentee (detailing amongst others, reporting frequencies).

The mentor and the mentee will then present a draft business plan at Khula's Regional Office. Should the business plan meet all the requirements as stipulated in the terms of reference, Khula's Regional Office will facilitate the promotion of the plan to a financing partner chosen by the applicant.

Khula's Regional Office will then track the loan application process until a decision is taken by a Khula financing partner.

Post-Loan Mentorship

Khula's Post-Loan Mentorship Programme is designed to provide business support services to enterprises in the early stage (introductory/compliance mentorship) as well as the decline phase (turnaround) of their (SMEs) life cycle. This intervention is only provided to SMEs that have benefitted from debt and or equity facilities provided by Khula through its financing partners (Khula's indirect clients).

Application Procedure: Post-Loan Mentorship

STEPS

Khula's financing partner approaches a Khula Regional Office in writing on behalf of an SME that has been financed through one of Khula's financing schemes or an SME that has benefitted from any of Khula financing schemes can approach Khula's Regional Offices should they experience some difficulties in running the business.

Khula's Regional Office will assess the application and develop terms of reference in preparation of a more specific or targeted intervention.

Khula's Regional Office will then appoint a mentor who is skilled to address the gaps defined in the terms of reference. At this point the Regional Office will ensure that there is a perfect match between the mentor and the mentee,

Khula, the mentor and the mentee (and in some cases the financing partner) will then sign the terms of reference.

The post-loan mentorship process will then commence with regular reports being submitted to both Khula and the financing partner. The mentorship intervention will be terminated at a pre-agreed period stipulated in the terms of reference or when all identified gaps have been addressed.