MICROCAPITAL BRIEF: JP Morgan Chase “Catalyst for Growth” Reports Improved Performance of Small and Medium-Sized Enterprises (SMEs) in South Africa

JP Morgan Chase, a US-based investment and banking firm, recently announced that the 20 small and medium-sized enterprises (SMEs) that are participating in its two-year pilot programme Catalyst for Growth (C4G), have reported increases of: 43 percent in overall average revenue; 19 percent in permanent employees; and 13 percent in accessing capital for their businesses [1]. The programme, currently in its second year, aims to provide support to SMEs in South Africa through “business development support” (BDS) providers that offer services such as mentoring, training and assistance in formulating business and marketing strategy. South African asset management company Cadiz Asset Management and US-based “impact investment” firm Imprint Capital have invested unspecified resources in the programme. Further it was announced that C4G will develop a tool to rate BDS providers to increase their “accountability and transparency.”

C4G was launched under the JP Morgan Chase Foundation, the philanthropic arm of JP Morgan Chase, with an investment of approximately USD 1 million. As of 2012, JP Morgan Chase reported total assets of USD 2.5 trillion.

By Nisha Koul, Research Associate

About J.P. Morgan Chase: Based in the US, JP Morgan Chase is a multinational banking and financial services firm. As of December 2012, the company reported total assets of USD 2.5 trillion, total deposits of USD 1.2 trillion, return on equity (ROE) of 11 percent and return on assets (ROA) of 0.94 percent.

Sources and Additional Resources:

[1] JP Morgan Chase News, “Pilot programme for South African Small and Medium Enterprises reports strong progress in year one,” https://www.jpmorgan.com/cm/cs?pagename=JPM_redesign/JPM_Content_C/Generic_Detail_Page_Template&cid=1320522639686&c=JPM_Content_C

JP Morgan Chase News, “J.P. Morgan SME Catalystfor Growth Program launches in Johannesburg,” https://www.jpmorgan.com/cm/cs?pagename=JPM_redesign/JPM_Content_C/Generic_Detail_Page_Template&cid=1320486660674&c=JPM_Content_C

MicroCapital Story, October 1, 2013, “Former JP Morgan Asset Management Chairman Unveils $40m Impact Investment Fund, Charioteer-Fund I, to Support Skill Development, Microenterprises in India,” https://www.microcapital.org/microcapital-brief-former-jp-morgan-asset-management-chairman-unveils-40m-impact-investment-fund-charioteer-fund-i-to-support-skill-development-microenterprises-in-india/

MicroCapital Story, July 24, 2013, “Standard Bank, Systemanalyse und Programmentwicklung (SAP) To Launch “AccessBanking” to Reach Unbanked in South Africa,” https://www.microcapital.org/microcapital-brief-standard-bank-systemanalyse-und-programmentwicklung-sap-to-launch-accessbanking-to-reach-unbanked-in-south-africa/#more-25102

MicroCapital Story, October 10, 2011, “Bill & Melinda Gates, Gatsby Charitable, Rockefeller Foundations and JP Morgan Invest $25m to Establish African Agricultural Capital Fund,” https://www.microcapital.org/microcapital-brief-bill-melinda-gates-gatsby-charitable-rockefeller-foundations-and-jp-morgan-invest-25m-to-establish-african-agricultural-capital-fund/

MicroCapital Universe Profile, JP Morgan Chase, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=J.P.+Morgan

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