By Vicky Sidler | Published 15 July 2025 at 12:00 GMT

South African entrepreneurs are feeling something unusual this year: optimistic.

According to the latest SME Confidence Index by Business Partners Limited, confidence in business growth is up 12%, and even confidence in the economy has climbed 13%. That’s like smiling during load shedding.

But optimism alone won’t pay your suppliers. Beneath the good vibes, cash flow challenges, complex funding systems, and a lack of support still weigh heavily on small businesses.

TL;DR

• SME optimism is rising—83% believe in business growth this year

• 86% say access to funding is critical, but still too hard

• 85% need better business resources; 83% want mentorship

• New laws aim to simplify support, but red tape remains

• Awards and exposure can help—if you can find time to apply

Need a clear message that attracts the right support? Grab the free 5-Minute Marketing Fix and make your business easier to back.

Why Everyone’s Feeling More Hopeful (Sort Of):

South Africa’s SMEs contribute over 60% of GDP and employ more than half the workforce—so when they’re upbeat, it’s worth noting.

The 2025 Confidence Index shows that 83% of small business owners feel confident about growth. Even belief in the national economy is up to 69%—a nice jump from last year.

David Morobe from Business Partners likens SME owners to Proteas: blooming under tough conditions. Which is beautiful imagery, but also a reminder that we’re all just trying not to wilt under inflation and load shedding.

Still, optimism matters. It drives action. And action is exactly what’s needed now.

Reality Check—3 Barriers Still Holding SMEs Back:

So what’s keeping all that optimism from turning into actual momentum? Three familiar culprits:

1. Funding Is Still a Maze:

86% of SMEs say access to finance is critical—but it’s still painfully hard to get.

Just ask Lindiwe Nkuna-Kgopa, founder of Lindiwe Sanitary Pads. She was told she wasn’t “bankable” because she’d never worked in a factory. Now, she owns a machine that pumps out 350 pads a minute. What changed? Mentorship, networking, and outside-the-box support.

If your growth depends on cash you don’t have, the bank may not be your first stop. Look at alternatives: crowdfunding, supplier finance, or grant programs linked to job creation.

2. Too Much Red Tape, Not Enough Help:

The National Small Enterprise Amendment Act aims to cut the paperwork jungle. That’s good news. But good legislation on paper doesn't always translate to real support.

85% of SMEs still say they need more targeted resources—not another website that sends them in circles.

Start by finding one or two local organizations that actually pick up the phone. Build relationships. And make sure your business messaging is clear enough that when someone asks, “What do you do?” you don’t start sweating.

3. Mentorship Is Missing:

Are you asking ChatGPT for business advice?

Stop that. It’s artificially displaying “intelligence”, not real judgement. 

That’s why 83% of entrepreneurs say mentorship is essential. The right mentor can save you six months of painful trial-and-error with one solid sentence.

Look for people who’ve built what you want to build—then start with a clear message and a humble question. Most business owners are happy to help when they know you're serious.

A Platform Worth Considering—Entrepreneur of the Year Awards

If you're running a small or medium business in South Africa, the Entrepreneur of the Year® Awards could give you a serious boost.

Winners receive a share of R2 million in prizes, including:

• Cash

• Mentorship

• Business exposure (especially ahead of the G20 and B20 summits in November)

That last one matters. Global exposure isn’t just a nice-to-have. It can open doors you didn’t know existed.

Entries close 31 August 2025 at www.eoy.co.za. Categories include:

• Emerging Entrepreneur

• Small Business Entrepreneur

• Medium Business Entrepreneur

You don’t need to be perfect. You just need a clear story, a measurable impact, and a bit of courage.

Grow with Clarity, Not Just Confidence

Confidence is fuel—but clarity is the engine.

If your message is fuzzy, you’ll struggle to attract the support you need. Whether it’s funding, mentorship, or exposure, people need to understand what you do—and why it matters—fast.

That’s where the 5-Minute Marketing Fix comes in. It’s a quick, practical tool that helps you craft a simple, powerful one-liner that builds trust.

👉 Get the 5-Minute Marketing Fix – it’s free. 

Because the clearer you are, the easier it is to grow.