Govt Targets Support for One Million Small Businesses to Drive Jobs and Growth

A key pillar of the government’s strategy is reducing regulatory burdens that hinder small business growth.

The South African government has unveiled an ambitious plan to support one million Micro, Small and Medium Enterprises (MSMEs) during the current administration, positioning small businesses at the centre of economic recovery and job creation.

Small Business Development Minister Stella Ndabeni made the announcement at the 14th Annual Proudly SA Buy Local Summit and Expo in Sandton, highlighting a multi-pronged strategy to cut red tape, expand financing and boost local enterprise growth.

One Million MSMEs Targeted for Support

Ndabeni said the Department of Small Business Development (DSBD), in partnership with the Small Enterprise Development Finance Agency (SEDFA), will provide:

• Financial support through expanded funding access

• Non-financial support including training, mentorship and market readiness

The initiative aims to unlock the full potential of MSMEs, which are widely regarded as the backbone of South Africa’s economy.

Cutting Red Tape to Improve Business Environment

A key pillar of the government’s strategy is reducing regulatory burdens that hinder small business growth.

Two major reforms include:

Red Tape Reduction Framework

• Provides tools to municipalities to simplify regulatory processes

• Addresses administrative bottlenecks affecting small businesses

• Aims to create a more business-friendly local environment

E-Registration System

• Introduces a streamlined, digital business registration process

• Reduces delays and complexity across districts and municipalities

• Improves accessibility for entrepreneurs

“These interventions are designed to make it easier to start and operate a business,” Ndabeni said.

Expanding Access to Finance and Infrastructure

Government plans to scale up access to funding by working closely with:

• Development Finance Institutions (DFIs)

• Commercial banks

• Non-bank financial institutions

The strategy also includes:

• Improved access to business infrastructure and equipment

• Integration of finance with market readiness and post-investment support

This approach aims to ensure long-term sustainability rather than short-term funding.

MSMEs: Key to Jobs and Economic Inclusion

Ndabeni underscored the critical role of MSMEs in addressing:

• Unemployment

• Inequality

According to estimates:

• MSMEs employ up to 60% of South Africa’s workforce

“They create pathways for young people, empower women entrepreneurs, and sustain local economies,” she said.

‘Buy Local’ Push to Strengthen Domestic Economy

The Minister called for stronger support of locally produced goods, emphasising the multiplier effect of local spending.

“Every rand spent at a local business circulates within our economy,” she said.

Benefits include:

• Job creation

• Business expansion

• Community development

Business Licensing Reform on the Way

Ndabeni confirmed that the upcoming Business Licensing Bill will aim to:

• Simplify licensing processes

• Reduce barriers to entry

• Support ease of doing business

E-Commerce and Illicit Trade Challenges

The Minister raised concerns about:

• Cheap imported goods on global e-commerce platforms

• Illicit trade and counterfeit products

Government responses include:

• Strengthening bilateral trade engagements

• Intensifying enforcement against illegal goods entering through ports

Call to Promote Local Brands

Ndabeni urged organisations like Proudly South African to ramp up efforts in:

• Promoting local brands

• Changing consumer preferences toward domestic products

Small Business at the Heart of Growth Strategy

With a target to support one million MSMEs, the government is placing small businesses at the forefront of its economic agenda.

By combining regulatory reform, financial support and local market development, the strategy aims to unlock entrepreneurship, stimulate job creation and build a more inclusive economy.