BY: TANA MALINGA
As South Africa prepares for the National Budget Speech later this month, focus is shifting to whether government commitments to small and medium sized enterprises (SMEs) will be supported by the funding and practical implementation needed to drive real economic impact.
In the 2026 State of the Nation Address delivered last week, President Cyril Ramaphosa reaffirmed the critical role SMEs play in economic growth and job creation. He noted that if every SME employed just one additional person, up to three million jobs could be created nationwide.
The President also acknowledged the daily challenges entrepreneurs face, including limited access to funding, restricted market opportunities, and complex regulatory and licensing requirements.
Government has committed more than R2.5 billion in funding to support over 180,000 SMEs, alongside a further R1 billion in guarantees. Proposed amendments to National Credit Act regulations are also expected to improve access to credit at lower cost.
While these commitments are significant, the key test will be whether the National Budget Speech provides the fiscal support and implementation details required to convert these announcements into measurable economic outcomes.
“The President has correctly recognised that SMEs can unlock the next wave of job creation in South Africa,” says Simone Cooper, Head of Business and Commercial Banking at Standard Bank South Africa.
“However, small businesses cannot grow on good intentions alone. They need practical delivery, and the Budget Speech is where these commitments must be translated into funded programmes, implementable reforms, and tangible support that reaches entrepreneurs on the ground,” Cooper adds.
For SMEs, the Budget is an important indicator of business confidence. It signals whether the operating environment will support investment and expansion, or whether businesses will remain in survival mode while absorbing the impact of infrastructure challenges, rising input costs, and administrative complexity.
A practical Budget Speech must therefore go beyond broad statements of support. It should outline how government will implement SONA commitments, including clearer mechanisms for SME funding access, improved payment cycles for SME suppliers, streamlined licensing and regulatory processes, and infrastructure investment that directly enhances business productivity.
At the same time, South Africa’s financial institutions have a responsibility to support SME growth. This includes providing accessible and responsible funding solutions, advisory support, and tools that strengthen cash flow management and long term sustainability, particularly in sectors and regions where small businesses are already demonstrating resilience and growth potential.
“Growth requires partnership. As government creates the conditions for SMEs to thrive, financial institutions must continue building solutions that help businesses invest, manage risk, and scale sustainably,” Cooper says.
As South Africa approaches the National Budget Speech, the true measure of success will be whether it strengthens the environment for SMEs to start, operate, and grow, ensuring they continue to play a central role in job creation and inclusive economic growth.
