SA's small business resilience shown as 80% of small firms grow despite challenges

STATE OF SA SMALL BUSINESSES 2025

- SIPHELELE DLUDLA

SOUTH African small businesses are continuing to display resilience, demonstrating remarkable resilience and optimism for the future in the face of political and economic uncertainty.

A recent report, The State of South African Small Business 2025, conducted by the global small business platform Xero reveals that a staggering 83% of small businesses witnessed revenue growth over the past year, while 90% expressed confidence in their prospects for growth moving forward.

Despite concerns that loom over the business landscape—nearly two-fifths of the surveyed entrepreneurs were worried about political instability, and more than a quarter anticipated service delivery challenges such as load shedding—small businesses are showing optimism for the year ahead.

According to the report, within the next year, 42% of small businesses plan to invest in upskilling their staff, while 40% aim to hire more personnel. Furthermore, 39% of these entrepreneurs are focused on developing skills in burgeoning technologies like artificial intelligence (AI).