SMES under pressure as business confidence hits four-year low in South Africa
Many Black-owned SMEs in particular rely heavily on government procurement contracts—a model some argue is no longer sustainable. Without diversification into sectors such as agriculture, real estate, or franchising experts warn that long-term resilience will remain out of reach
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00:00As South Africa's business confidence hit a four-year low, concerns amount in over long-term viability of small, medium-sized enterprises that are already navigating power cuts, funding constraints and rigid red tape.
00:14The slowdown is playing out in real time across the country's business landscape, especially in the second-tier cities and township.
00:21SMEs and SMMEs are the, well, if you want to look at it, are the bedrock of any economy's growth.
00:30Corruption and mismanagement of public funds in South Africa has impacted on the business environment.
00:36In South Africa, you have very, very strict, what you call red tape and compliance regulations.
00:48You know, this has made SMMEs very despondent.
00:56With many black-owned SMEs relying heavily on government contracts, expires stress in the need for diversification and sustained income streams.
01:05I've always been an advocate for multiple sources of income, you know, to diversify in other streams of income and also to be able to channel some of the monies into property development,
01:25into agricultural and farming, manufacturing and franchising.
01:32This particular aspect of it will then create jobs, would help in creating jobs in the economy and provide sustainability.
01:40There are renewed calls on the government and corporate players to remove policy barriers, invest in township economies and expand access to financial resources for local entrepreneurs.
