By Excel Fongoma
North West finance MEC Kenetswe Mosenogi has announced a budget allocation of R1.013 billion for SMMEs in the province as part of the 2025 provincial budget.
Mosenogi said that the province was committed to creating an enabling and supportive environment for small businesses, highlighting the crucial role they played in driving
economic growth, reducing unemployment and fostering inclusive development.
The MEC reaffirmed the government’s commitment to ensuring that SMMEs received the necessary financial backing, resources and opportunities to enhance their sustainability and competitiveness in the market.
“SMMEs are the backbone of our economy,” Mosenogi stated, noting that targeted investment in the sector was essential for stimulating local economies and empowering entrepreneurs.
“The R1.013 billion allocation would provide much needed financial relief and support, enabling small businesses to overcome existing challenges and expand their operations.
“The funding is intended to help SMMEs unlock their potential, create job opportunities and contribute meaningfully to the broader economic development of the North West province,” she said.
While the announcement has been met with optimism, several stakeholders have raised concerns regarding the implementation and accessibility of these funds.
Business owners stress that merely allocating funds is not enough. They must be effectively disbursed, managed and monitored.
Tsholofelo Sepharagatlhe, who owns Temo Organics is based in Mahikeng, said: “I am excited, yet concerned. While the R1.013 billion budget allocation for SMMEs in the North West is a positive step, its impact depends on effective implementation and support. Many small businesses still face serious challenges limited access to funding, complex application processes, lack of awareness, and stringent eligibility criteria.’
In addition, they had to deal with gaps in business skills, a lack of mentorship and limited market access, which made it difficult for them to grow and be sustainable.
“We need robust monitoring, evaluation, and simplified processes to ensure this funding truly reaches and empowers entrepreneurs. Only then can this initiative drive meaningful change for our small businesses,” said Sepharagatlhe.
The owner of Prime African Security Company, Mishack Mabheka, said that the funds had the potential to make a meaningful impact.
“However, the success of this allocation depends on addressing the systemic challenges that small businesses continue to face such as limited access to funding, complex regulatory requirements and inadequate support structures. Only by tackling
these issues can we ensure that this investment drives sustainable growth and empowers entrepreneurs across the province,” he said.
Access to funding has long been a significant challenge for many small business owners in the province, with many frequently facing complicated application processes, limited awareness of available opportunities and strict eligibility requirements.
In addition, a lack of access to mentorship and skills development programmes continues to hinder long-term growth and sustainability for SMMEs.
