Survey reveals half of SA small businesses are at risk of closure

Sustainability focus as half of South Africa’s small enterprises may not survive the next year

- YOGASHEN PILLAY

ANEW SURVEY has unveiled alarming insights into the sustainability of small businesses in South Africa, indicating that without immediate financial support, half of the nation’s small enterprises may not survive the next year.

Titled the Small Business Growth Index (SBGI) and released on Friday by Absa, the South African Chamber of Commerce and Industry (Sacci), and the Bureau of Market Research (BMR) at Unisa, the survey said that South Africa’s small business ecosystem has revealed a sector under extreme pressure, with rising operational costs leaving more than half in decline, distress or at risk of closure.

“Most report they may not survive beyond 12 months under current conditions, underscoring the urgent need for targeted and systemic support from both the public and private sectors.”

With an index score of 51.08, the current state of South Africa’s small business environment is classified as being in the “vulnerable” zone.

The survey, which captures responses from over 1 600 small businesses across all nine provinces, highlights a sector grappling with extreme financial pressures.

Rising operational costs, coupled with a challenging economic landscape, have left many companies in decline and at significant risk of shutdown.