Vutivi
  • Business
    Bees pollinate over 50 crops in South Africa, including apples, avocados, canola, and sunflowers

    Beekeeping holds key to rural development

    Entrepreneurs are leveraging Estonia’s e-Residency programme

    Estonia offers entrepreneurs opportunity on international trade

    Actor Sicelo Dlamini of Reign Oils

    Actor Sicelo Dlamini fuels reign oils’ empire creating jobs

    Makatu Tshivhula who manufactures candles

    Entrepreneur turns very little into thriving candle business

    Snowy Lesotho mountains welcome tourists from around the world

    Lesotho snowcation boosts businesses

    Discovery Green and Sasol executives, alongside government officials, launched Ampli Energy. Picture: Sasol

    New renewable energy platform gives companies a boost

    109 businesses were liquidated in April 2025

    Systemic challenges push SA SMEs to liquidation brink

    Department of Trade, Industry and Competition (the dtic) and the Kingdom of Lesotho’s Ministry of Trade, Industry and Business Development have agreed to enhance trade.  Photo: dtic

    South Africa and Lesotho strengthen trade ties to empower small businesses

    Bank fees crippling small businesses

    Hidden bank fees are crushing small businesses

    Small and emerging beer producers face unpacked struggles in the beer sector.
Photo: Pexels

    Craft beer boom faces funding and market access hurdles

  • Agriculture
    Foot and mouth disease affecting farmers

    Cattle farmers reeling over foot and mouth outbreak

    Masabata Sebusi, co-founder of Agrivuno

    New initiative offers farmers growth opportunities

    A new project aims to help cannabis growers and SMEs to enter the formal market

    Rural enterprises to benefit from marijuana university project

    Coastal Fishing communities at the Small-Scale Fisheries Summit in Eastern Cape. Photo: Facebook.

    Struggling fishermen plead for minister’s intervention

    Farming with no water a big crisis

    Water crisis in Tshwane takes its toll on agribusiness

    Business analyst James Mavundla who launched Agrowex

    Agrowex App bridges farmer market gap

    Paul Bango with one of his black Ayam Cenami cocks.
Photo: Supplied

    Rare, pricey chickens that even lay eggs in winter.

    Floods have affected farmers in the Northern Cape

    Northern Cape agriculture on brink of collapse after floods

  • Innovation
    The founder and CEO of Q4ME Vuledzani Mathavha

    Q4ME turns the hassle of queuing into a business opportunity

    Business analyst James Mavundla who launched Agrowex

    Agrowex App bridges farmer market gap

    Coin powered connectivity delivers easy profits for small businesses

    Portable power station by Vincent Mosebe

    Innovator develops portable station to power up SMEs

    Lillian Barnard, president for Microsoft Africa. Picture: Microsoft

    Empowering SMMEs through AI: Microsoft’s new vision

    AI-driven disinformation becoming a threat

    How businesses can fight back against cybercrime

    Owen Lekala

    Innovative transport app set to expand

    Online marketing platform made for SMMEs

    Gcina Madonsela, Business Development Executive at SME South Africa

    Technology is reshaping small business sector

    Chepapi Sepetsi

    Curiosity sparks entrepreneurship for mechanical engineer graduate

  • Finance
    MEC Lebohang Maile during his budget vote at Gauteng Legislature

    Gauteng’s budget offers strategic investment in SMEs

    South African National Parks, in partnership with Sanlam, offers an interest-free loan program at Table Mountain in Cape Town. Photo: Facebook.

    More businesses to benefit from SANParks loan deal

    Finance Minister Enoch Godongwana

    R402 billion budget could open doors for construction SMEs

    Small Business Finance Development Agency has helped an entrepreneur to secure funding to invest in a filling station. Pic: Shell

    Franchise funding for entrepreneurs

    SMEs happy with Limpopo budget

    Limpopo Budget: hope for small businesses

    GEP deputy chairperson Phosane Mngqibisa

    Gauteng increases support for small businesses to access funds

    Heineken is investing in a malting plant

    Heineken’s R1.9bn investment set to boost local barley farmers

    Finance Minister Enoch Godongwana. Picture: GCIS

    Value Added Tax hike has SMMEs worried

    Finance Minister Enoch Godongwana to deliver revised budget

    Revised Budget 2025: What SMMEs Expect

    From left to right: Zoya Sisulu (Standard Bank Head, Client Coverage & Financial Institutions), Leila Mokaddem (AfDB Southern Africa Director General), Kenny Fihla (Standard Bank Group Deputy CE & SA CE), and Ahmed Attout (AfDB Financial Sector Development Director).
Picture: Supplied

    Billions set aside to finance small businesses

  • Tourism
    Astrotourism is emerging as a promising niche for the sector

    Space-related tourism offers economic lift-off for entrepreneurs

    Borutho Tours and travel is ready to give tourists a taste of Limpopo hospitality.

    Tourism campaign targets visitors to ignite economic growth

    Gen Zs attended tourism indaba in numbers

    Gen Z takes the lead on SA Tourism

    Small businesses at Tourism Indaba

    Indaba 2025 – a win for Africa’s tourism sector

    KwaZulu-Natal businesses seek growth at Africa Travel Indaba

    Small business owners at tourism indaba

    Travel indaba a mixed bag for tourism sector businesses

    Tourism Minister Patricia de Lille

    Funding woes threaten small business presence at Africa’s tourism show

    Speech by Deputy Minister of Tourism, Maggie Sotyu t the stakeholder engagement at Fezile Dabi District Municipality in the Free State

    Tourism workshop opens new path for SMEs

    Tourism Business Council of South Africa CEO Tshifhiwa Tshivenga

    Proposed electronic travel system to boost tourism

  • Advertise
No Result
View All Result
Vutivi
  • Business
    Bees pollinate over 50 crops in South Africa, including apples, avocados, canola, and sunflowers

    Beekeeping holds key to rural development

    Entrepreneurs are leveraging Estonia’s e-Residency programme

    Estonia offers entrepreneurs opportunity on international trade

    Actor Sicelo Dlamini of Reign Oils

    Actor Sicelo Dlamini fuels reign oils’ empire creating jobs

    Makatu Tshivhula who manufactures candles

    Entrepreneur turns very little into thriving candle business

    Snowy Lesotho mountains welcome tourists from around the world

    Lesotho snowcation boosts businesses

    Discovery Green and Sasol executives, alongside government officials, launched Ampli Energy. Picture: Sasol

    New renewable energy platform gives companies a boost

    109 businesses were liquidated in April 2025

    Systemic challenges push SA SMEs to liquidation brink

    Department of Trade, Industry and Competition (the dtic) and the Kingdom of Lesotho’s Ministry of Trade, Industry and Business Development have agreed to enhance trade.  Photo: dtic

    South Africa and Lesotho strengthen trade ties to empower small businesses

    Bank fees crippling small businesses

    Hidden bank fees are crushing small businesses

    Small and emerging beer producers face unpacked struggles in the beer sector.
Photo: Pexels

    Craft beer boom faces funding and market access hurdles

  • Agriculture
    Foot and mouth disease affecting farmers

    Cattle farmers reeling over foot and mouth outbreak

    Masabata Sebusi, co-founder of Agrivuno

    New initiative offers farmers growth opportunities

    A new project aims to help cannabis growers and SMEs to enter the formal market

    Rural enterprises to benefit from marijuana university project

    Coastal Fishing communities at the Small-Scale Fisheries Summit in Eastern Cape. Photo: Facebook.

    Struggling fishermen plead for minister’s intervention

    Farming with no water a big crisis

    Water crisis in Tshwane takes its toll on agribusiness

    Business analyst James Mavundla who launched Agrowex

    Agrowex App bridges farmer market gap

    Paul Bango with one of his black Ayam Cenami cocks.
Photo: Supplied

    Rare, pricey chickens that even lay eggs in winter.

    Floods have affected farmers in the Northern Cape

    Northern Cape agriculture on brink of collapse after floods

  • Innovation
    The founder and CEO of Q4ME Vuledzani Mathavha

    Q4ME turns the hassle of queuing into a business opportunity

    Business analyst James Mavundla who launched Agrowex

    Agrowex App bridges farmer market gap

    Coin powered connectivity delivers easy profits for small businesses

    Portable power station by Vincent Mosebe

    Innovator develops portable station to power up SMEs

    Lillian Barnard, president for Microsoft Africa. Picture: Microsoft

    Empowering SMMEs through AI: Microsoft’s new vision

    AI-driven disinformation becoming a threat

    How businesses can fight back against cybercrime

    Owen Lekala

    Innovative transport app set to expand

    Online marketing platform made for SMMEs

    Gcina Madonsela, Business Development Executive at SME South Africa

    Technology is reshaping small business sector

    Chepapi Sepetsi

    Curiosity sparks entrepreneurship for mechanical engineer graduate

  • Finance
    MEC Lebohang Maile during his budget vote at Gauteng Legislature

    Gauteng’s budget offers strategic investment in SMEs

    South African National Parks, in partnership with Sanlam, offers an interest-free loan program at Table Mountain in Cape Town. Photo: Facebook.

    More businesses to benefit from SANParks loan deal

    Finance Minister Enoch Godongwana

    R402 billion budget could open doors for construction SMEs

    Small Business Finance Development Agency has helped an entrepreneur to secure funding to invest in a filling station. Pic: Shell

    Franchise funding for entrepreneurs

    SMEs happy with Limpopo budget

    Limpopo Budget: hope for small businesses

    GEP deputy chairperson Phosane Mngqibisa

    Gauteng increases support for small businesses to access funds

    Heineken is investing in a malting plant

    Heineken’s R1.9bn investment set to boost local barley farmers

    Finance Minister Enoch Godongwana. Picture: GCIS

    Value Added Tax hike has SMMEs worried

    Finance Minister Enoch Godongwana to deliver revised budget

    Revised Budget 2025: What SMMEs Expect

    From left to right: Zoya Sisulu (Standard Bank Head, Client Coverage & Financial Institutions), Leila Mokaddem (AfDB Southern Africa Director General), Kenny Fihla (Standard Bank Group Deputy CE & SA CE), and Ahmed Attout (AfDB Financial Sector Development Director).
Picture: Supplied

    Billions set aside to finance small businesses

  • Tourism
    Astrotourism is emerging as a promising niche for the sector

    Space-related tourism offers economic lift-off for entrepreneurs

    Borutho Tours and travel is ready to give tourists a taste of Limpopo hospitality.

    Tourism campaign targets visitors to ignite economic growth

    Gen Zs attended tourism indaba in numbers

    Gen Z takes the lead on SA Tourism

    Small businesses at Tourism Indaba

    Indaba 2025 – a win for Africa’s tourism sector

    KwaZulu-Natal businesses seek growth at Africa Travel Indaba

    Small business owners at tourism indaba

    Travel indaba a mixed bag for tourism sector businesses

    Tourism Minister Patricia de Lille

    Funding woes threaten small business presence at Africa’s tourism show

    Speech by Deputy Minister of Tourism, Maggie Sotyu t the stakeholder engagement at Fezile Dabi District Municipality in the Free State

    Tourism workshop opens new path for SMEs

    Tourism Business Council of South Africa CEO Tshifhiwa Tshivenga

    Proposed electronic travel system to boost tourism

  • Advertise
No Result
View All Result
Vutivi
No Result
View All Result

Impact of key policies on SMMEs

by Moipone Malefane
November 28, 2024
in Analysis
Reading Time: 5 mins read
A A
Share on FacebookShare on TwitterShare via Email
Advertisement

By Moipone Malefane

Our country has made some strides in supporting the sustainable growth of small businesses, but challenges remain that can affect their ability to upscale effectively.

Here’s an analysis of the key policies and how they impact the scaling of small businesses in our country.

Advertisement
  1. Government Support Programmes

The Small Enterprise Development Agency (Seda) is a government agency that provides support services to small businesses, including financial assistance, advice and training. Seda also offers mentorship and support in navigating regulatory challenges. While this initiative helps businesses scale, there is a bottleneck in terms of resource distribution, and not all businesses have access to these services.

The Department of Trade, Industry and Competition supports small businesses through incentives like the Black Industrialists Programme and Incubation Support Programme. They are intended to increase the capacity and competitiveness of small businesses, especially those owned by previously disadvantaged individuals. However, some businesses face difficulties in meeting the criteria and requirements for these programmes.

  1. Access to Finance

Funding Programmes: Government has created various funding programmes, such as the Small Enterprise Finance Agency (Sefa), to provide access to finance for small businesses. However, they still struggle to access capital due to stringent loan requirements, high interest rates and an often-limited understanding of the financial products available.

Lack of Collateral: One of the major obstacles for small businesses looking to scale is the lack of collateral to secure loans. This is particularly true for businesses in rural areas or those without significant capital investment, making it difficult to expand operations or invest in new technologies.

  1. Regulatory Environment

Bureaucracy and Red Tape: Small businesses often cite complex bureaucracy and regulatory hurdles as major barriers to growth. While there have been efforts to streamline procedures (e.g. online company registration), issues like tax compliance, local government regulations and labour laws still create obstacles for SMMEs that want to expand quickly.

Labour Laws: While laws protect workers, they can be a challenge for small businesses looking to scale. High costs of labor and stringent labour laws (e.g. minimum wage requirements and dismissal protections) may deter employers from hiring additional workers, which slows down the growth of their businesses.

  1. Tax Policies and Incentives

Tax Breaks: Government has offered some incentives for small businesses, such as the Small Business Corporation Tax rate, which offers a reduced tax rate for qualifying small businesses. However, these tax breaks are often not widely utilised due to a lack of awareness or difficulty in qualifying.

Value Added Tax: Small businesses that exceed the VAT registration threshold of R1 million in annual turnover are required to register for VAT. This can place an administrative burden on businesses that are still in the early stages of scaling and may divert resources from growth initiatives.

  1. Market Access and Infrastructure

Access to Markets: Small businesses often face challenges in accessing larger markets due to a lack of marketing, branding and distribution channels. The government has introduced initiatives such as the Cooperative Incentive Scheme and market linkages through trade fairs and platforms, but these are often insufficient or not easily accessible.

Infrastructure Challenges: Inadequate infrastructure, particularly in rural areas, also hampers small businesses’ growth. Poor roads, unreliable electricity supply and limited internet access in certain areas create operational inefficiencies that limit the ability of small businesses to grow and compete on a larger scale.

  1. Entrepreneurial Culture and Skills Development

Education and Skills Training: There are various programmes aimed at improving the entrepreneurial skills of small business owners, such as business incubators and training programmes. However, a large skills gap still exists, particularly in sectors like technology, management and marketing, which are crucial for scaling a business.

Entrepreneurial Culture: While our country has a growing entrepreneurial culture, challenges such as limited access to mentorship, market information and networks persist. This can create barriers to scaling, as businesses may not have the guidance or resources needed to transition from a small startup to a larger enterprise.

  1. Support for Specific Sectors

There are targeted policies to support certain sectors, such as agriculture, technology and manufacturing. For example, the agri-parks initiative supports small-scale farmers and agribusinesses by providing them with infrastructure, market access and training. However, the success of such sector-specific policies varies, and businesses in sectors not prioritised by the government, may not benefit as much.

The country’s policies provide a supportive framework for small businesses, but challenges such as limited access to finance, high operational costs, complex regulations and infrastructure gaps still hinder the sustainable growth of these businesses.

While various government programmes facilitate growth, many small businesses still struggle to access the full benefits of these initiatives.

To further enable scaling, there needs to be a more comprehensive and accessible approach to funding, simplified regulations, better market access and stronger entrepreneurial support systems.

 

 

 

Tags: SMEs and bottleneckSMEs and supportSMEs and sustainability
Previous Post

A passion for organic farming results in worm farming business

Next Post

Township Economy Summit focuses on building inclusive growth

Moipone Malefane

Moipone Malefane

Related Posts

AI generated example of Vutivi audience

2025 Vutivi Business News reader survey

June 9, 2025
MEC Lebohang Maile

Growing Gauteng as an investment destination of choice

February 14, 2025
BEA CEO Refilwe Monageng

Small businesses warn electricity hike will cripple them

January 16, 2025
Load More
Next Post
Delegates at 6th annual Township Economy Summit and Expo

Township Economy Summit focuses on building inclusive growth

MEC Lebohang Maile

SMMEs will be paid in 15 days: Maile

Small business owner turns Covid-19 retrenchment into growth opportunity

Advertisement
Information Inspiration Education | AnalysisSouth Africa's best news resource for micro-businesses and township entrepreneurs.
Follow Vutivi Business News on WhatsApp

FEATURED POST

Bees pollinate over 50 crops in South Africa, including apples, avocados, canola, and sunflowers

Beekeeping holds key to rural development

June 13, 2025
Entrepreneurs are leveraging Estonia’s e-Residency programme

Estonia offers entrepreneurs opportunity on international trade

June 13, 2025
The founder and CEO of Q4ME Vuledzani Mathavha

Q4ME turns the hassle of queuing into a business opportunity

June 12, 2025
Actor Sicelo Dlamini of Reign Oils

Actor Sicelo Dlamini fuels reign oils’ empire creating jobs

June 12, 2025

Vutivi is a digital business news platform that will serve the Small Medium Micro Enterprises in the form of writing stories that will be informative about their sector. We pledge to deliver a commercially sustainable, world-class digital financial and business news service that is a must-read while being responsive to readership needs and tailor-making packages for SMMEs.

Categories

  • Agriculture
  • Analysis
  • Business
  • Finance
  • Innovation
  • Top story
  • Tourism

Get in Touch

Email

news@vutivibusiness.co.za

© 2025 Vutivi. All rights reserved. Website by AIPX Atelier

Advertise / Privacy Policy / Contact

No Result
View All Result
  • Business
  • Agriculture
  • Innovation
  • Finance
  • Tourism
  • Advertise

© 2024 Vutivi // Website by AIPX Atelier.

We want to get to know you!Take the Vuitivi Business News reader survey
AI generated image of Vutivi readers