Happy Ralinala, Director of Palesa Mbali Group, is focused on empowering women entrepreneurs and leadership excellence. Formerly Managing Executive of Business Banking at Barclays Africa Group, she also led Private and Wealth Banking Segments. With a distinguished career in banking, business strategy, and financial services, Happy is a seasoned board member, trusted advisor, leadership coach, and mentor.
Happy sat down with SME South Africa to share insight into funding.
Misunderstandings in Funding
“One of the most common misunderstandings I encounter is the belief that securing funding is the solution to all business challenges,” Ralinala shares. “Many entrepreneurs assume that once capital is secured, growth will follow automatically. However, funding is only effective when it is combined with a sound business model, clear strategy, disciplined execution, and robust financial management.
“Another misconception is that funders prioritise passion or ideas when, in reality, they assess risk, sustainability, and the business’s ability to generate cash flow and repay obligations. Understanding the importance of financial readiness, such as accurate financial records, realistic projections, and a clear repayment plan, is essential when approaching funders. Ultimately, funding should be viewed as a strategic enabler, not a lifeline.”
Ralinala agrees that educating business owners about their finances is a must. “Financial education for business owners must be practical, relevant, and ongoing. It begins with simplifying financial language, helping entrepreneurs understand essential concepts like cash flow, profit versus revenue, working capital, and debt servicing in plain terms.”
She says that simplifying financial language is essential in helping entrepreneurs grasp their critical numbers, enabling them to make informed business decisions.
“A compelling example is a seasoned woman entrepreneur I recently engaged with who runs a biscuit business and achieved a remarkable breakthrough in her 60s, demonstrating exceptional financial literacy without formal training. I was truly inspired.
“She knew exactly how much profit she made from each mixture, factoring in the cost of ingredients, packaging, electricity, her time, and even the causes and costs of breakages. She could clearly articulate how many units she needed to sell to break even, her seasonal peaks and dips, what drives growth, and who her market is, all in a very simple, intuitive way that made perfect business sense. Her ability to track profitability and market trends in an intuitive manner exemplifies how financial education is not solely about academic knowledge but about practical application and strategic thinking.”
Financial education requires context, relevance, and confidence. When business owners are taught to relate finances to their daily operations and decision-making, they unlock the kind of ownership and insight that leads to real growth.
According to Ralinala, the next step is to build confidence through real-time learning, using financial records to interpret performance and identify trends. “This is only possible when business owners keep proper and up-to-date records, from daily sales and expenses to inventory and payroll.”
Good record-keeping not only enables better decision-making but also ensures compliance with tax and regulatory requirements, which is essential for accessing funding and scaling sustainably. Tools like budgeting templates, simple dashboards, and financial scorecards help make these numbers more meaningful and actionable, turning data into insight.
“Thirdly,” she emphasises. “We must embed financial literacy into the entrepreneurial journey, not treat it as a once-off training. This includes mentoring, peer-learning, and access to financial experts who can guide them through different growth stages.
“Finally, financial education must emphasise the strategic value of financial management, showcasing how sound financial decisions enhance credibility, attract investment, and drive long-term business sustainability.”
Becoming Funding Ready
Ralinala explains that banks see funding readiness as a business can demonstrate its viability, credibility, growth potential and capacity to repay borrowed funds.
In simple terms, the business must demonstrate that:
- There is a customer and a real market for the product or service.
- It is already making a profit or has a clear path to profitability
- There is consistent and reliable demand, with the ability to sustain off-take over time
- The operation is efficient and profitable, maintaining strong cost controls
- It can repay debt and meet all its financial obligations
- Long-term sustainability proves that the company can remain profitable after covering expenses.
“In cases where funding is linked to a contract or off-take agreement,” she explains. “Banks assess the value and sustainability of that contract.
“It is not just about the contract’s face value; what matters is whether the contract:
- It is with a reputable and credible buyer who is in good standing
- Has clear, fair, and enforceable terms that protect the business and do not put the funds at risk
- And does not contain hidden clauses or conditions that could cause financial strain later, many entrepreneurs overlook fine print in the excitement of landing a big contract, especially when it involves a well-known brand.”
Ultimately, banks want to see that the funding will be used responsibly to grow the business and that the business has the financial discipline, foresight, and systems in place to honour its commitments. Funding readiness is as much about preparedness as it is about potential.
Encouraging Women-led Entrepreneurship
As a long-standing member of the Veuve Clicquot Bold Woman Award judging panel, Happy has witnessed a remarkable shift in the business world, with women-led enterprises growing in quality, scale, and impact.
“I have been part of this incredible journey since 2016. It has been both an honour and a deeply fulfilling experience to witness and support the growth of this platform that so powerfully showcases and elevates businesswomen leaders.
“Women-led businesses drive innovation, create jobs, and shape society through inclusive practices. Supporting female entrepreneurs isn’t just about equity—it’s about unlocking potential that benefits entire economies. My mantra, ‘Even eagles need a push,’ speaks to how success often emerges from adversity. By supporting women, we help them recognise their strength and soar to new heights.”
Over the years, Ralinala have seen finalists and winners walk away with recognition, renewed confidence, pride, and energy to grow their businesses.
“The sense of community that it forms among the women is powerful. Last year’s finalists, for example, left the award’s process understanding that they are part of a strong, interconnected ecosystem – one built on mutual support and shared ambition.”
Ralinala elaborates that this process is vital; it shows young women that leadership, impact, and innovation are accessible at any age or stage. “It shows them that their voice matters, their dreams are valid, and their contributions can reshape industries and communities.”
She proudly shares that her involvement in this initiative is driven by both passion and purpose, a commitment to empowering entrepreneurs, especially women, who continue to achieve remarkable success even with limited resources. “Growing up, I was surrounded by strong, pioneering women whose impact was undeniable despite the constraints they faced. Their resilience makes me reflect on an important question: had they been given the right opportunities, how much more could they have accomplished?
“Women are not just building businesses; they’re leading with purpose and sustainability,” she says. “What was once a fight for a seat at the table is now a movement of women creating their own tables and inviting others in.”
