Insights from SimplyBiz Members: What South Africa’s Micro and Small Business Owners Are Thinking

Listening to the voice of small business

SimplyBiz, in collaboration with research partner In On Africa (IOA), conducted a survey earlier this year with 154 members of the SimplyBiz platform. The aim was to better understand the challenges, ambitions, and growth strategies of small and micro businesses in South Africa. 

These businesses are often overlooked in national economic planning, yet they play a critical role in employment, innovation, and inclusive growth. According to the International Finance Corporation, SMEs contribute up to 60% of total employment and up to 40% of GDP in emerging economies. By capturing their perspectives, this paper offers valuable insights into how South African SMEs view their role in the broader African economy, what support they need, and how their growth aspirations can be supported.

Who are the respondents?

The vast majority of respondents are micro-businesses - 63% earn less than R100,000 annually, in total, over 90% generate less than R1 million per year.

Additionally, 46% are solo entrepreneurs, and another 47% employ between 1 and 10 staff members. Only 7% run businesses with more than 10 employees.

These are lean, agile enterprises navigating tight markets with creativity and drive. Despite their size, they demonstrate bold ambition, especially when looking beyond South Africa’s borders.

 

Growth ambitions: Africa is on the radar

When asked about the most significant opportunities they see in African trade, respondents highlighted three key areas:

1. Expanding into new markets (58%) - This was the most common response, underscoring that even small and micro businesses are thinking beyond local markets. Enabled by e-commerce, digital platforms, and the increasing ease of cross-border operations, these businesses are more confident than ever about growth into Africa. Momentum from initiatives like the African Continental Free Trade Area (AfCFTA) is also creating a more connected African marketplace. The AfCFTA aims to boost intra-African trade by reducing tariffs and simplifying trade rules, creating a potential market of 1.4 billion people.
2. Growing consumer demand (40%) - Africa’s rapid urbanisation, youthful population, increasing mobile connectivity, and expanding middle class are driving a surge in consumer activity across the continent. Household consumption is expected to rise significantly in the coming years, creating new opportunities for SMEs that can anticipate and meet shifting customer expectations. This demand-side momentum is particularly promising in sectors such as retail, services, and digital goods.
3. Forming strategic partnerships (39%) - Business owners recognise that collaboration is essential to scale effectively. Strategic partnerships offer routes into new markets, risk-sharing, and local know-how. In a diverse continent like Africa, these partnerships are often a make-or-break factor for success. Partnering with local distributors, franchisees, or ecosystem players can also help navigate regulatory and logistical complexities.

Information is power – and networks matter

To pursue growth, SMEs need reliable and accessible information. When asked about their primary sources of market intelligence, respondents showed a clear preference for peer-led and digital tools: 

1. Personal networks (52%) - Entrepreneurs rely on each other for trusted insights. WhatsApp groups, peer forums, and conversations with fellow business owners are often more actionable and context-specific than formal sources. In an environment where formal market research is often inaccessible or expensive, these networks become vital channels for intelligence and opportunity-spotting.
2. Online resources (48%) - With digital access growing, SMEs are turning to the internet to guide their decisions. The rise of generative AI tools such as ChatGPT, Claude, and Gemini offers new ways for businesses to research, plan, and strategise more effectively. As these tools evolve, they can also support SMEs with content creation, customer service, and operational planning – provided they are paired with critical thinking and digital literacy.
3. SimplyBiz Trading in Africa Toolkit (37%) - A standout result is the value respondents place on SimplyBiz’s own Toolkit. Its growing reputation as a practical, go-to resource highlights the need for tools tailored to the SME context. Designed specifically for small business owners, the Toolkit provides local market insights, guidance on navigating trade barriers, and strategic support for cross-border growth. It is a living example of how platforms can equip entrepreneurs with actionable knowledge.

What SMEs need to grow into Africa

The most significant barrier to growth? Funding.

1. Access to finance (62%) - This is the overwhelming need identified by SMEs. Challenges include not only availability of funding but also awareness of financial options, credit readiness, and formal documentation. According to the SA SME Fund and the World Bank, the SME finance gap in South Africa runs into billions of rands. Addressing these issues is critical for helping SMEs move from idea to implementation.
2. Information on market opportunities (9%) - The demand for better-curated, localised intelligence highlights the importance of initiatives like the SimplyBiz Toolkit and tailored briefings. Reliable, sector-specific, and country-specific data can help entrepreneurs plan with more clarity and confidence.
3. More networking opportunities (6%) - Many SMEs already rely heavily on informal networking, but more structured opportunities could amplify their reach and impact. Events, workshops, and virtual collaboration platforms can create new channels for mentorship, partnerships, and lead generation.

 

Bold ambition, but support must follow

South Africa’s micro and small businesses are not short on ambition. Their willingness to scale into Africa speaks volumes. But to realise this ambition, they need stronger support ecosystems: easier access to finance, smarter information tools, more opportunities to collaborate, and better infrastructure to scale.

SMEs remain one of Africa’s most promising drivers of inclusive growth. According to the African Development Bank, SMEs represent 90% of all businesses and create 80% of employment across the continent. It’s now up to government, corporates, funders, and platforms like SimplyBiz to clear the path for these entrepreneurs to thrive—and in doing so, help unlock the continent’s full economic potential.

This SimplyBiz article was developed in collaboration with our research partner,

In On Africa (IOA).