The second State of the SMME in South Africa report found that almost one third (32.1%) of surveyed small businesses have been operating for more than two decades. 

At the same time the report, published by the Shoprite Group and based on research conducted by World Wide Worx among 800 small, medium and micro enterprises (SMMEs), shows that businesses employing just one to five people remain the largest company-size category (39.1%).

The findings point to a persistent challenge for the country’s small-business sector: even established businesses that have survived for years, and often decades, don't consistently develop into larger employers.

This comes despite signs of growing confidence among the businesses surveyed. Some 42% describe themselves as growing and expanding, compared with 33% in the 2025 survey, while 85% expect moderate to high growth in the year ahead.

More than half (53.6%) reported net profit after tax above 10%.

“These findings are encouraging, particularly given the difficult operating environment SMMEs have navigated. The challenge now is to help businesses convert that resilience into sustainable growth and greater economic impact,” said Maude Modise, Enterprise and Government Relations Executive at the Shoprite Group.

Access to customers remains a major growth constraint

The research gives some indication of what surveyed businesses believe would help them grow.

Access to markets is the most commonly identified requirement, cited by 56.9% of respondents, ahead of financial support at 39.5% and digital tools and platforms at 29.7%.

When asked specifically about the role of support from large corporations, some 78.1% of respondents rated regular orders as important or very important, ahead of mentorship, grants, training, technical skills and loans.

These findings suggest that securing reliable customers and repeat business remains a key hurdle for SMMEs trying to move into their next stage of growth.

For large companies, this places procurement and access to established supply chains at the centre of the small-business growth discussion.

“An order from a large customer can create a significant opportunity, but a small business also needs the working capital and capacity to deliver on it. Market access, appropriate finance and practical business support need to work together if we want to help more SMMEs scale,” said Arthur Goldstuck, CEO of World Wide Worx.

Most SMMEs are still financing themselves

Access to capital remains another constraint.

Some 70.8% of respondents say improved access to funding would increase their competitiveness, yet 90.9% currently rely on their own resources and personal networks. Only 9.7% use bank loans, while 57.4% have never applied for funding.

The gap is particularly pronounced when it comes to private investment. Only 2.1% currently use private investors, while 46.2% identify private investment as a funding mechanism they would like to use.

The report identifies access to working capital, market opportunities, business systems and procurement opportunities among the areas that could help established SMMEs expand.

Shoprite supporting small suppliers to grow

The Shoprite Group supports SMMEs through Shoprite Next Capital, a division focused on empowering and growing local, commercially viable small businesses.

Their approach combines access to the Group’s retail market with working capital and practical support across areas that include product development, training, data insights, and growth planning.

In 2026, Shoprite Next Capital invested R30 million in enterprise and supplier development and onboarded 13 new suppliers, bringing the number of supported SMMEs to 84. These businesses contributed 469 locally produced products to the retail market.

A further R10.7 billion in working capital was provided to 120 suppliers.

The impact of this support can be seen in the growth trajectories of businesses such as Gauteng fresh-produce supplier, Urban Grown, and technology solutions provider, OTB Group.

Urban Grown grew by approximately 45% over four years and now employs 34 people after expanding its relationship with the Shoprite Group.

Supported by milestone-based funding from Shoprite Next Capital and a long-term contract to develop the Shoprite Group's digital recruitment platform, OTB Group expanded from employing six permanent employees to supporting approximately 50 roles.

“SMME development is about more than funding. Corporates can help create the conditions for growth by opening supply chains, creating predictable demand and helping small businesses build the financial and operational capacity to respond to those opportunities,” said Modise.