R5 trillion SME sector demands tangible backing

SMALL and medium-sized enterprises (SMEs) are the backbone of South Africa's economy, contributing more than R5 trillion in turnover, accounting for roughly 34% of the country's GDP, and employing 11.4 million people.

- ASHLEY LECHMAN

These vital economic engines drive innovation, create jobs, and fuel economic growth across the nation.

In this context, 84% of SMEs expect their businesses to grow over the next 12 months, 69% are confident the economy will be conducive to growth, and confidence in access to finance has risen to 64%.

At the same time, cash flow, economic conditions, and access to funding remain the top concerns, and confidence that clients will pay on time sits at 72%, up 3 points year on year.

This signals cautious but determined momentum despite ongoing pressures.

In the face of ongoing challenges and opportunities, South African entrepreneurs continue to demonstrate resilience and resourcefulness. But resilience alone is not enough.

Beyond encouragement: the need for tangible support

“What SMEs need now is more than encouragement, they need tangible support,” Trudy Maleka, founder of Ambesha Africa and 2024 Emerging Business Entrepreneur of the Year said.

Her call for action reflects the urgent need for a fundamental shift in how South Africa supports its small business sector.

Maleka advocated for a comprehensive support ecosystem that includes better access to funding, practical mentorship programs, skills development platforms, and meaningful involvement in policy decisions that affect the sector.