While the Department of Small Business Development’s National Spaza Shop Fund aims to empower township and rural convenience stores, many small-business owners say they are unable to access the funding because of limited information and poor awareness campaigns.
The fund was launched to support spaza shops and other community-based convenience stores through financial assistance, business development support and opportunities for growth. However, some entrepreneurs argue that the programme cannot achieve its intended impact if potential beneficiaries are unaware of its existence or do not understand how to apply.
Parliament’s Portfolio Committee on Small Business Development recently called for urgent intervention to address delays in issuing operating licences to spaza shops by municipalities. The committee described the licensing backlog as the primary constraint limiting access to the Spaza Shop Support Programme.
Ofentse Kclifort, a spaza shop owner in Soshanguve, says the biggest challenge facing many small-business owners is the lack of accessible information about the fund.
“I only heard about the National Spaza Shop Fund through word of mouth,” Kclifort said. “The government is not advertising it enough. Many spaza shop owners in my area don’t know the fund exists, and those who do know about it are often unsure about the application process.”
According to Kclifort, the information available about the fund is not reaching many township entrepreneurs, particularly those who rely on their businesses for daily income and may not have regular access to government communication platforms.
“Most of us spend our days running our businesses. We don’t always have time to search online for funding opportunities,” he explained. “The government should visit communities, hold information sessions and use local platforms to spread awareness.”
Kclifort believes that better communication would encourage more small-business owners to apply for funding and improve their chances of growing their enterprises.
The National Spaza Shop Fund forms part of the government’s broader efforts to support small businesses and stimulate economic activity in townships and rural communities.
Spaza shops play a significant role in local economies by providing essential goods, creating jobs and generating income for families.
Despite these benefits, access to support programmes remains a challenge for many entrepreneurs. Business owners often depend on social media, community groups and word-of-mouth communication to learn about available opportunities. As a result, important government initiatives may fail to reach their intended beneficiaries.
Palesa Leshaba, 24, said she is struggling to access the funding after applying months ago.
”I submitted my application and still have not received any communication, and I was hoping that this fund would truly help us, the youth,” Leshaba
”I submitted my application and still have not received any communication, and I was hoping that this fund would truly help us, the youth,” Leshaba
Thembi Ngozo, owner of Ga-Ngwanamma General Dealers in Garankuwa Zone 9, said access to funding remains one of the biggest challenges facing her business.
Ngozo employed two people and believes the fund would help her purchase stock in bulk and improve the sustainability of her business.
“The biggest challenge for us is funding. If I could access the fund, I would be able to buy more stock and grow my business,” she said.
Ngozo added that she had previously approached the National Youth Development Agency (NYDA) for assistance, but had not yet received the support she was seeking.
Some small-business practitioners argue that awareness campaigns should be expanded to include local radio stations, community newspapers and outreach programmes in townships.
They believe these channels would be more effective at reaching entrepreneurs with limited internet access or who are unfamiliar with government websites.
Kclifort also pointed out that uncertainty surrounding application requirements discourages some business owners from pursuing funding opportunities.
“Even when people hear about the fund, they are not always sure what documents are needed or where to apply,” he said. “There should be clear and simple information available in communities so that people can understand the process.”
Nhlonipho Radebe, owner of Conquer Trading Radebe in Garankuwa said competition from larger and foreign-owned businesses makes it difficult for local operators to attract and retain customers.
“As a local business owner, it is difficult to compete. Funding would help us improve our businesses and better serve our customers,” he said.
Many small traders have limited digital skills or lack access to reliable internet, which makes it difficult for them to complete online applications. Strict compliance checks also lead to rejections, especially in cases where ownership documents are unclear or where there are suspicions of fronting.
Some applications are also delayed due to environmental health requirements, which are necessary for food safety compliance.
Economic analysts have repeatedly highlighted the importance of supporting small enterprises, particularly in townships where unemployment remains high. Access to funding can help businesses expand operations, increase stock levels and create employment opportunities within local communities.
However, Kclifort believes that improving communication should be a priority before the fund can fully achieve its objectives.
“The fund has the potential to help many people, but it can only make a difference if business owners know about it,” he said.
As the government continues its efforts to support township and rural businesses, entrepreneurs such as Kclifort are calling for stronger awareness campaigns and clearer communication to ensure that the National Spaza Shop Fund reaches the people it was created to assist.
*This article was produced by Tshwane University of Technology students from the faculty of journalism and media studies as part of their test to join the Vutivi Business News internship programme.
