16-07-2025
Red tape, funding shortfalls and lack of data still constrain small business growth
Red tape, limited funding access, and inadequate data systems remain key challenges facing South Africa's small business sector.
Addressing the National Council of Provinces' Select Committee on Economic Development and Trade, Small Business Development Minister Stella Ndabeni-Abrahams told the committee that structural issues continue to constrain micro, small and medium enterprises (MSMEs)
These include limited access to finance, regulatory and administrative burdens, lack of access to competitive markets – particularly in rural and township areas – and insufficient ICT and innovation support. Ndabeni-Abrahams also flagged the absence of a centralised and up-to-date MSME database as a constraint on evidence-based policymaking and effective monitoring of support programmes.
Ndabeni-Abrahams underscored the Department's alignment with the National Development Plan's target of generating 90% of new jobs through MSMEs over the long term, and said institutional reforms are aimed at improving service delivery and strengthening the Department's support models.
