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    Experts warn that compliance and tax issues are becoming increasingly common particularly among SMEs. Photo. Sabinet

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  • Business
    The Spaza Shop Support Fund in Limpopo is not reaching as many township and rural businesses as intended. Lucas Ledwaba\Mukurukuru Media

    Low compliance and admin hurdles hamper R500m Spaza Support Fund

    Statistics South Africa (Stats SA) reports that 1 534 businesses entered liquidation in 2025, with about 100 closures recorded in December alone. Photo. burgerhuyserattorneys.co.za

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    The 2025 festive season confirmed that cashless commerce is no longer a trend but a structural feature of the economy. Photo. Standard Bank

    Festive spending shows double digit growth in cashless payments

    Small business traders like hawkers at the Tshakhuma Market in Limpopo are now left to carry the costs of the damages resulting from the floods. Photo. Limpopo Tourism Agency\Facebook

    Informal traders and SMEs carry huge losses after flooding

    Small businesses say access to equipment funding remains one of the biggest barriers to growth.

    SMEs assess reopened asset assist plan as funding gap persists

    Livestock stokvels are taking off as people seek to escape the cost of rising food prices. Photo. Lucas Ledwaba\Mukurukuru Media

    Livestock stokvels emerge amidst rising food prices

  • Agriculture
    President Cyril Ramaphosa engages with US President Donald Trump during a working visit to the US last year. South Africa has the US's decision to extend the AGOA trade deal that will benefit SA businesses including SMEs. Photo. GCIS

    AGOA extension buys time for SMEs but structural risks remain

    Small-scale poultry farmers are set to benefit from a Rainbow Chicken initiative that includes the handing out of 100 chicks to boost their businesses. Photo. Wikipedia

    New initiative hatches growth for small-scale poultry farmers

    Milk production drops as the foot-and-mouth outbreak pushes prices higher. Photo: allaboutfeed.net

    Milk and meat prices soar and farmers count costs as FMD spreads

    Livestock stokvels are taking off as people seek to escape the cost of rising food prices. Photo. Lucas Ledwaba\Mukurukuru Media

    Livestock stokvels emerge amidst rising food prices

    Profit and not size is key for red meat producers

    Cattle farmers in affected provinces are holding animals longer as foot-and-mouth disease movement controls continue to restrict market access.

    Foot-and-mouth curbs push small-scale farmers to the brink

    Kenya is leading the charge in promoting biogas technology as a renewable energy source. Photo. Go Green East Africa

    Biogas emerges as opportunity for small scale farmers

    Farmers in Vhembe district of Limpopo are pleading for help after floods destroyed their crops. Facebook

    Farmers plead for help after floods destroy their crops

  • Innovation
    Innovative building technologies (IBTs) are set to transform South Africa’s housing sector while opening new opportunities for SMEs. Photo. Dept of  Human Settlements

    Innovative building technologies to unlock opportunities for SMEs

    A new app helps school leavers find vacancies at varsities and relevant courses. Photo. Wits University

    Innovative entrepreneur’s app helps students access varsity

    Township-based tutoring businesses are emerging as an important and fast-growing support system. Photo. CPD Online College

    Back-to-school rush boosts township tutoring businesses

    DSTI's Director-General Dr Mlungisi Cele and CSIR CEO Dr Thulani Dlamini during the launch of CSIR's Hot Isostatic Press facility. Photo: CSIR

    New CSIR facility opens advanced manufacturing access for SMEs

    A locally developed point-of-care diagnostic test for foot and mouth disease (FMD) is expected to strengthen business continuity in South Africa’s livestock sector. Photo. Stellenbosch University

    Foot and mouth diagnostic innovation offers relief for farmers

    CSIR robotics experts Dr Sunveer Matadin (white shirt) and community health worker and disability consultant Ruth Stubbs with the Buddy4Life cerebral palsy prototype device, 26 November 2025.

    Science research body seeks SME support for new health product

    eNL Mutual Bank is a new entrant in the banking sector.

    Women owned mutual bank enters banking sector

    Import dependent SMEs hope RMB payments will reduce delays and exchange rate losses.

    RMB payments set to improve import trade for SMEs

    South Africa’s tourism sector is positioning itself for a more tech-driven future following the launch of a Smart Tourism Visitor Information Centre (VIC) at OR Tambo International Airport.

    ORT airport digital centre gives SMEs exposure

    The Chief Commercial Officer of HisWay Labs, Mr Kent Gibbon, showcasing TrackView on Day 1 of the Rail Live 2025.

    South Africa’s small rail engineers target international markets

  • Finance
    The 2025 festive season confirmed that cashless commerce is no longer a trend but a structural feature of the economy. Photo. Standard Bank

    Festive spending shows double digit growth in cashless payments

    Zelma Matinise is the sixth woman to become a Sorbet franchise owner through the Bidvest Bank Sorbet-Preneur iniative.

Photo: Supplied

    Sorbet-Preneur model unlocking SME ownership for women

    Cattle farmers in affected provinces are holding animals longer as foot-and-mouth disease movement controls continue to restrict market access.

    Foot-and-mouth curbs push small-scale farmers to the brink

    A student accommodation in Soshanguve Block H that assists students who are still struggling to get access to school residence

    Township property owners make good business from student rentals

    South African Reserve Bank Governor Lesetja Kganyago stated that the new 3% inflation target has enabled the country to enter a low-inflation environment.

    South Africa’s 3% inflation target could offer stability for SMEs

    Experts advise SMEs to keep a clean financial record to secure loans. Photo. Banking Association of SA

    Experts warn SMEs about lack of understanding of bank fees

    Santam’s London launch marks significant shift for SA’s insurer

    Small businesses anticipate steady economic gains in 2026

    Rising tax pressure puts SMEs under strain ahead of 2026 budget

    eNL Mutual Bank is a new entrant in the banking sector.

    Women owned mutual bank enters banking sector

  • Tourism
    Washed-out infrastructure in flood-hit provinces restricts access to tourism routes, contributing to cancellations and revenue losses for SMEs. Photo: Internet

    Tourism SMEs seek urgent relief after floods crisis

    Hotel 247 meets European buyers. Hotel 247 director Khosi Mthalane said the programme is offering rare exposure to international buyers and strengthening confidence among participating SMEs.

    Tourism roadshow opens European market for local operators.

    A German couple hosted by Shepherd Tourism Tours in Bloemfontein on the 10th of January 2026, showcasing the Free State as a province to go to, not a province to go through.

    Tourism SMEs seek to beat off season blues

    Sandton Convention Centre stands ready to host Meetings Africa 2026, positioning Johannesburg at the centre of Africa’s business events dialogue.

    Africa’s tourism sector calls for impact at Meetings Africa

    Township taverns are seeing a drop in match-day crowds. Photo: issuu.com

    Entertainment SMEs running on empty after Bafana’s Afcon exit

    Tourism entrepreneurs close 2025 with cautious optimism

    Qantas – Joburg route opens new growth avenues for tourism SMEs

    Boardwalk has created space for informal traders. Sun-Park-Events

    Premier fun complex creates business space for small traders

    In preparation for peak season demand, accommodation providers across the country have scaled up operations.

    Hospitality sector scales up operations for festive season

  • Advertise
  • Resources
    • All
    • Business Tools & Templates
    • Compliance & Legal
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    Experts warn that compliance and tax issues are becoming increasingly common particularly among SMEs. Photo. Sabinet

    Experts advise on triggers for account freezes as SMEs stumble

    Small businesses say access to equipment funding remains one of the biggest barriers to growth.

    SMEs assess reopened asset assist plan as funding gap persists

    When government payments run late, small businesses can really feel the pinch on their cash flow.

    How SMEs can beat violation of 30 day payment policy

    A student accommodation in Soshanguve Block H that assists students who are still struggling to get access to school residence

    Township property owners make good business from student rentals

    Quiet trading floors in January are forcing many small businesses to delay new hires until cash flow improves.

    Hiring on hold as slow January trading squeezes cash flow

    Bricklayers and small construction teams operating as micro-enterprises, often without formal registration, access to finance, or long-term contracts.

    Informal builders behind growing home building economy

    Government blacklisting can affect more than contracts, it can shape how banks view your business.

    How government blacklisting can affect your business

    Bank confirmation letters are consistently cited by contracting authorities as a mandatory compliance document for tender submissions

    Why bank confirmation letters are crucial in tendering

    Parents shop selectively for school essentials as rising costs reshape back-to-school spending.

    January spending squeeze tightens margins for township retailers

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SA SMME sector still struggling

by Amy Musgrave
October 27, 2022
in Business
Reading Time: 3 mins read
A A
Finance Minister Enoch Godongwana. Supplied by GCIS

Finance Minister Enoch Godongwana. Supplied by GCIS

By: Amy Musgrave

The slow growth experienced by South Africa’s SMMEs has once again been highlighted in the budget as one of the key reasons for the country’s sustained sluggish economic performance. While delivering the 2022 Medium Term Budget Policy Statement on Wednesday, Finance Minister Enoch Godongwana painted a dismal picture of the economic outlook for the next three years, warning that the country will not reach its developmental goals at the current rate of economic growth.

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“South Africa’s economy has underperformed for many years. Several long-standing structural impediments continue to hamper growth,” Godongwana told Parliament. These impediments include the unreliable electricity supply, a costly and inefficient port and rail network, crime and corruption, weak state capacity, and high levels of market concentration and barriers to entry that suppress the emergence and growth of small businesses. “These challenges undermine our efforts to create jobs, contributing to high levels of poverty and inequality,” the minister said.

SMMEs have long been identified as crucial to helping build a prosperous and inclusive economy and creating the majority of jobs, as they do in most other successful economies. However, this has not materialised in South Africa as support for their growth has been impeded by the country’s structural challenges, as well as a lack of a coherent approach to driving and supporting the growth of small businesses.

Godongwana said there were several reasons why South Africa’s robust pace of economic recovery in early 2022 had been derailed. These included severe flooding and more intensified load-shedding, which both continue to impact small and large enterprises. Industrial action in key sectors also had a negative impact. The country now expects real GDP growth of 1.9% in 2022, compared with an estimate of 2.1% during February’s budget speech. Over the next three years, the economy is expected to grow at an even more reduced average of 1.6%.

“This level of growth is too low to support our developmental goals. Accordingly, we must take action to put our economy on a higher growth trajectory,” he said. The budget document supports the minister’s view and says that the state’s structural reforms are centred on increasing electricity production and removing associated regulatory constraints, building confidence to support increased private investment in infrastructure, and creating the conditions in which small and large businesses can flourish and create many more jobs.

On economic development, the budget says that over the three-year spending period ahead, about 8.8% of the allocation to economic development will provide transfers and subsidies to departmental agencies, public corporations and private enterprises. On SMMEs, the Department of Small Business Development will work with municipalities to reduce administrative and regulatory burdens for small, medium and micro enterprises and co-operatives. The state will deepen collaboration with Proudly South African to support over 1000 informal businesses in 2023/24 and just under 4000 informal businesses over the Medium-Term Expenditure Framework period.

It will also provide support to small enterprises in the burgeoning cannabis industry over the same period. And the Department of Tourism has reprioritised funds towards the pilot phase of the Tourism Equity Fund which was introduced in 2021 and supports majority black-owned and black management-controlled tourism enterprises. The aim of the Medium-Term Budget Policy Statement is to assess spending in the medium term rather than annually, to track the impact of fiscal allocations in addressing the country’s growth and development goals.

Tags: Enoch GodongwanaMedium term budgetSouth Africa’s SMMEs
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