The government has invested more than R760 million in initiatives that provide financial support, digital skills programmes, and innovation funding to help small businesses grow and become sustainable.
Yet small business owners in townships and rural areas continue to face challenges in accessing funding, skills, and tools, despite government investments aimed at supporting startups.
Minister of Small Business Development Stella Ndabeni-Abrahams outlined these measures in a parliamentary reply, addressing concerns that state support has historically favoured provinces such as Gauteng and the Western Cape.
She explained that her department is working to ensure digital transformation initiatives and innovation funding reach informal businesses and historically underserved regions.
“SEDFA offers a range of digital transformation support, including digital readiness assessments and training. SEDFA’s Digital Transformation Programme is designed to help MSMEs streamline their processes, improve market reach, and enhance competitiveness in a rapidly evolving business environment,” Ndabeni-Abrahams said.
The programmes include digital skills training for township entrepreneurs, support for spaza shops to adopt digital payment and stock management systems, and broader digital transformation initiatives for small and medium-sized enterprises.
Funding is mainly provided through the Small Business Innovation Fund, which focuses on startups with innovation and growth potential.
Since 2015, a total of R763 million has been disbursed, with R256 million going to township-based startups and R238 million to rural businesses.
Limpopo and Mpumalanga now receive larger shares than the Western Cape, R90 million and R95 million respectively, compared to R82 million for the Western Cape, reflecting a deliberate effort to promote inclusive growth.
These programmes offer opportunity for entrepreneurs on the ground, but also highlight the challenges of accessing support.
Thabo Mokoena, a carpentry business owner in Mamelodi, said accessing funding remains challenging for small operators focused on keeping their businesses running.
“Most of us hear about funding through social media or word of mouth, but when you actually try to apply, the requirements are heavy,” Mokoena said. “You are asked for financial statements, tax clearance, company registration and other documents. As a small business owner, I spend my time looking for customers, buying material and paying workers. I don’t have an accountant or time to deal with paperwork and paying for professional services costs money we don’t always have.”
Similarly, Thabelo Mukwevho, who owns a spaza shop in Elim, said small traders with regular customers often struggle to meet compliance requirements needed to qualify for funding.
“My shop is open every day and I have customers from the community,” Mukwevho said. “The money I make goes straight back into buying stock. When funding opportunities come, you are told you must be fully registered and compliant, but getting there costs money. You need to pay for registration, sometimes a consultant, and travel to offices that are far from where we live.”
Mukwevho said that without hands-on support to help businesses become compliant, many township and rural traders remain excluded from funding meant to support them.
Ndabeni-Abrahams highlighted that the SBIF is not just about money, but includes pre-investment support to build funding pipelines, incubation support, and digital hubs that provide training in areas such as e-commerce, coding, blockchain, artificial intelligence, 3D printing, robotics, and cybersecurity.
Financial support alone cannot ensure success, and practical guidance and mentorship remain important to help small businesses use funding effectively. These programmes are designed to give township and rural startups the tools, skills, and networks they need to grow sustainably and reach wider markets.
By aligning innovation funding with practical digital and business support, government aims to create more opportunities for historically underserved entrepreneurs to innovate, expand and contribute meaningfully to local economies. For township and rural SMEs, this investment represents both opportunity and a chance to bridge long-standing gaps in resources, skills, and market access.
