By Vicky Sidler | Published 27 May 2025 at 12:00 GMT

Lately, South Africa’s been making global headlines—and not always the good kind. But here’s something that should be on front pages: 83% of small businesses in South Africa grew in the past year.

Let that sink in. 

In a country facing political tension, economic strain, and ongoing infrastructure challenges, small businesses are not just surviving—they’re thriving.

And according to Xero’s 2025 State of Small Business Report, they’re doing it with a blend of optimism, tech-savviness, and sheer determination.

Grit, Growth, and a Bit of AI:

Xero’s data paints a bold picture:

• 90% of small businesses feel optimistic about their future growth.

• Nearly half (45%) say technology has been one of their biggest advantages.

• 42% plan to upskill staff, and 39% want to invest in AI tools.

What’s more—this isn’t just buzz. Businesses like House Harvest, led by Gugu Mahlangu, are living proof.

“Despite the ongoing challenges in infrastructure and access to funding, House Harvest continues to grow, powered by innovation, grit, and purpose,” she said.

Gugu’s secret? Staying curious, embracing technology, and building networks that support others.

That’s not just inspiring. That’s a strategy.

What’s Fueling the Growth?

Here’s the breakdown:

• Cloud technology is making a real difference. 58% say it helps with financial management, and 40% use it to cut down admin.

• AI is gaining traction. 34% are already using it to talk to customers. Others are using it to manage data and analyze performance.

• Accountants and bookkeepers are playing a major role. 80% of businesses that use them say they’re their most trusted advisor.

In short: South African business owners are using every tool at their disposal—and it’s paying off.

But the Challenges Are Real:

Let’s not gloss over the gaps.

• 38% cite a lack of resources or skills to adopt new tech.

• 35% say integrating new tools with existing systems is still a headache.

• 28% need more support with training and skills development.

• 28% say funding remains a major barrier.

And of course, load-shedding, political instability—and now, international tensions—remain constant background noise.

So how are these businesses still pushing forward?

Three Takeaways for Business Owners Everywhere:

As a Duct Tape Marketing Strategist and StoryBrand Certified Guide, here’s what I see in this report: A blueprint for building resilience, even in tough environments.

1. Share Your Wins—They Build Trust:

Whether it’s a tech breakthrough or a new hire, showing momentum reassures customers. If you’re growing, let people know why. It builds credibility.

2. Educate While You Innovate:

If you’re rolling out something new—AI, automation, whatever—make the benefits clear. Keep the message simple, customer-focused, and real.

3. Leverage Your Advisors:

Accountants, bookkeepers, coaches—they aren’t just “support”. They’re growth enablers. Position them in your marketing as part of your strength.

Optimism Is Contagious:

When the headlines are heavy, stories like this are a breath of fresh air. And if you’re wondering what to do with your own marketing right now, take a page from Gugu’s book: Stay curious. Embrace the tools you have. Keep showing up.

Need a hand crafting a message that inspires confidence and drives action?

👉 Download the free 5-Minute Marketing Fix and get clear on how to tell your story—one sentence at a time.

Because let’s face it: grit is great, but clarity pays the bills.