Ashley Rekman | March 31, 2025
South Africa's small, medium-sized micro-enterprise (SMME) sector is often referred to as the economic lifeline, and new reports have identified the need for important support for women entrepreneurs.
Commissioned by Shoprite Group, this report highlighted the key need for targeted support for female entrepreneurs and improved access to underrated regional markets and resources.
World Wide Worx conducted the survey through the survey. The survey gathered insights from 800 SMME owners across the country.
Although they highlighted diversity within the SME sector of South Africa, they also found important systematic challenges related to gender, age, geography and education.
For example, 51.2% of SMMEs are owned by men, but women are more likely to own small businesses and are more likely to face major barriers when attempting to scale.
Entrepreneurial activities are also concentrated in major economic hubs, with Gauteng and the Western Cape being based around 65.9% of SMME, and provinces like the Northern Cape being only about 1% of the country's entrepreneurial activities.
The report further demonstrated the economic impact of SMMES. This depends on scale and maturity.
Medium-sized companies show strong profitability, with 43.3% achieving net profits above 20%, showing strong profitability, playing a key role in job creation.
Gender-based challenges, including limited funding and access to networks, continue to hinder the growth of women-led companies.
Geographical disparities exacerbate this further, limiting access to infrastructure and markets in less developed states.
To maximize the potential of SMMES in South Africa, the report provides many practical recommendations.
Develops tailored financial products and bespoke mentorship programs for women entrepreneurs.
Supports startups through incubators, fundraising and simplified regulations.
Helping medium-sized businesses by focusing on workforce development, technology and market expansion.
Invest in SMME infrastructure and subsidies in underserved regions.
Shoprite Group said it is actively tackling the challenges facing SMMES through Shoprite Next Capital.
It serves as a comprehensive support hub and provides working capital support to SMME partners via CREDX. This is a fundraising tool that offers lower fees than traditional banks, marketing opportunities, packaging and labeling, data sharing, product range and geographical expansion, and even a private label partnership.
During the Group's fiscal year 2024, CREDX provided R1 billion working capital to 110 suppliers, Shoprite Next Capital supported 64 SMMEs during this period and invested R20 million in Enterprise and Supplier Development (ESD).
Furthermore, spending on black women-owned suppliers has risen by almost 9%, reaching R18.3 billion over the past year.
“SMME is essential for economic growth and job creation, especially in countries with the highest unemployment rates in the world. Our aim in this report is to further support the diverse SMME sectors of South Africa, gain deeper insight into whether systemic barriers can be overcome and ultimately create an inclusive economy.
“Disclaimer – the views and opinions expressed in this article are the views of the author and are not necessarily those of the Bee Room.”
