Recent data from South African small business reports point to improving conditions for SMEs, driven by stable electricity and easing inflation, though funding challenges remain. Confidence in growth has edged higher while vulnerabilities persist.
Trevor Gosling, CEO of SME funding platform Lula, described the current mood among small businesses as one of measured optimism. He noted that the story of SMEs in 2026 is no longer one of pure survival, but not yet one of full recovery either, according to the company's SME Pulse Report.
Jeremy Lang, managing director of Business Partners, highlighted that 81 percent of SMEs are confident their businesses will grow over the next year. The SME Confidence Index also showed 69 percent believe the economy will support growth, with 73.4 percent citing reduced load shedding as a key operational improvement.
Ndumiso Zulu, CEO of group social investments at Old Mutual, emphasized that micro, small and medium enterprises employ more than 13 million South Africans and account for 80 percent of the workforce. He stressed the ongoing funding gap for growth-oriented SMEs and called for combined financial and non-financial support through programmes like the Masisizane Fund.
