SMME’s

SMALL … BUT MIGHTY

South Africa’s small business sector is a force to be reckoned with. According to the Small Enterprise Development Agency, there are around 2.7 million small, medium and micro enterprises (SMMEs) currently operating, and their contribution to the country’s gross domestic product stands at around 40 per cent. Even so, it’s not easy to be an SMME owner in South Africa. Apart from the usual challenges facing entrepreneurs, small companies are burdened by issues such as electricity cuts, a difficult economic environment and insufficient support from funders. Happily, the SMME sector is holding its own in the face of these difficulties, with the Bureau of Economic Research predicting growth of 2.2 per cent this year – a twofold increase on 2024.

Several factors are driving this growth, from the effects of artificial intelligence on efficiency to the proliferation of new funding sources.

In this issue, we look at how SMMEs can take advantage of these innovations. We’ve also secured insight from industry experts across various ­elds. Their contribution creates a roadmap for the sector, helping small business owners navigate areas such as marketing,

cybersecurity and environmental, social and governance. The message is clear: it cannot be denied that SMMEs operate in a unique context, but many of the resources that have created a competitive advantage for their larger counterparts could prove just as impactful for small businesses. It’s simply a matter of application.

We hope the information in this magazine proves valuable to small business owners, facilitates their growth and nurtures resilience so that this powerhouse of a sector can ‑flourish, creating more opportunities for sustainable employment and poverty alleviation.

Lisa Witepski