Tag: SMEGrowth

Small and Medium Enterprises (SMEs) are undeniably the lifeblood of South Africa's economy. They represent 91% of businesses in the formal sector and employ roughly 60% of the country's workforce. Yet, the entrepreneurial landscape remains notoriously harsh. More than 70% of South African SMEs fail between their first and fifth years.

South Africa’s Small and Medium Enterprises (SMEs) face increasing pressure to grow cautiously. Economic volatility, rising operating costs and stubbornly high unemployment continue to reshape hiring decisions across the small business sector.

One of the single scariest challenges for a growth business is when they must make the calls to “level-up” on their talent within their organisation. The standard monthly cost for an experienced Chief Financial Officer (CFO) is between R2m and R5m per annum. Gulp. For a growth business this represents a very significant investment. Not only are you bringing in an expensive resource, but this is also a person who will interrogate your business in a way that your current bookkeeper or accountant never has.

The 2026 Budget Speech, delivered by Finance Minister Enoch Godongwana in February 2026, has generally been described as a “good news” budget. At a macro level, the strides toward fiscal consolidation are notable. Additionally, the increase in VAT for Small and Medium Enterprises (SMEs) reflects a shift in revenue strategy. These developments support key socio-economic measures, including employment.

South Africa has a thriving and growing tourism market. It attracts local, regional and international tourists to our shores. Visitors come here because they want to experience something uniquely South African. They seek experiences that cannot be replicated anywhere else. Against this backdrop, hospitality emerges as a powerful catalyst for accelerating localisation.

Everyone knows how important it is to retain good staff, and how disappointing it is when a top performer leaves. This impact is felt more keenly in smaller businesses. For a Small and Medium Enterprise (SME), losing a key employee is not just an HR inconvenience. It can shake team morale, disrupt operations and affect customer relationships.

South Africa heads into 2026 on a firmer economic footing than in recent years. A steadier macro backdrop and modest growth prospects are beginning to take shape. This shift should support the country’s Small and Medium Enterprise (SME) sector. The sector picked up some momentum in the second half of last year, albeit from a low base. At the same time, sentiment has improved and confidence has returned.

Succession planning and integrating the next generation remain critical and challenging issues for many family businesses. Without a thoughtful and structured approach, business owners risk undermining their legacy. They also risk weakening the long-term sustainability of the enterprise. This happens when family, ownership, and business systems are not prepared for the transition.

Amid Global Entrepreneurship Week, running from 17 to 23 November, new insights from small business communities offer practical lessons for South African entrepreneurs. These insights show how digital skills, innovation and proven global strategies can fast-track growth. As the week unfolds, global SME insights highlight opportunities for transformation.

Standard Bank’s latest Township Informal Economy Report reveals that eight out of ten township traders are not registered. From our work with entrepreneurs, this reflects deeper barriers - not just administrative, but psychological and structural - that keep many businesses trapped in informality.