New report offers key insights to unlock potential of SMMEs

SOUTH Africa’s Small, Medium, and Micro Enterprise (SMME) sector is often referred to as the backbone of the economy and a new report has identified that crucial support is needed for female entrepreneurs.

- ASHLEY LECHMAN

The report, commissioned by the Shoprite Group, revealed the critical need for targeted support for female entrepreneurs and improved access to markets in underserved or under-represented regions.

World Wide Worx conducted the research via a survey, which gathered insights from 800 SMME owners nationwide.

It highlighted the diversity within South Africa’s small business sector, but also found significant systemic challenges related to gender, age, geography, and education.

For example, while 51.2% of SMMEs are male-owned, women are more likely to own smaller businesses and face greater barriers when trying to scale.

Entrepreneurial activity is also concentrated in key economic hubs, with Gauteng and the Western Cape leading provinces at almost 58.5%. SMME operating provinces like the Northern Cape with only about 1% of the nation’s entrepreneurs by activity.