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The Citizen
a day ago
- Business
- The Citizen
Here is how SMEs can take advantage of the G20 and B20 summits
Entrepreneurs can use these summits to elevate their businesses beyond local constraints. South Africa will be flooded with heads of state and government from the world's largest economies in November for the G20 and B20 summits. This presents an opportunity for the country's tourism sector to directly benefit from these gatherings, and most importantly, it is time for small and medium enterprises (SMEs) to take advantage of this growth opportunity. The G20 summit is an annual meeting of heads of state and government from the world's largest economies, along with the European Union and the African Union, to discuss and coordinate on pressing global issues. The B20 serves as a platform for dialogue among policymakers, civil society, and businesses at the international level. ALSO READ: Mid-year financial check for SMEs: Tips to prepare for the next six months How SMEs can benefit David Morobe, executive general manager for Impact Investing at Business Partners Limited, says entrepreneurs can use these summits to elevate their businesses beyond local constraints. 'The summits offer the country's entrepreneurs a once-in-a-generation opportunity to engage with influential decision-makers, forge cross-border partnerships, and position their businesses for international growth.' He is of the view that SMEs in the country already embody the B20 theme of 'Inclusive Growth and Prosperity through Global Cooperation'. Morobe highlighted that the B20 provides a platform for the country to showcase how homegrown enterprises are setting standards for inclusive and sustainable growth. What SMEs need Morobe says the pressure is still on, despite SME confidence growing in 2025, as entrepreneurs view the economy and government efforts as supportive of growth. Referring to the latest Business Partners SME Confidence Index, he notes that respondents cited cash flow, economic conditions, and limited funding as the top barriers. 'To overcome these, 86% of SMEs say access to finance is critical, 85% need targeted business resources, and 83% highlight the importance of mentorship.' ALSO READ: How mental health affects entrepreneurs New Act for SMEs Morobe notes that the introduction of the National Small Enterprise Amendment Act is a step in the right direction, but unfortunately, it is not enough. The Amendment aims to simplify access to both financial and non-financial support by reducing bureaucratic hurdles. He calls on the private sector to play a role in providing the capital, mentorship, networks, and exposure that entrepreneurs need to succeed. Entrepreneur of the Year Awards Entries for the 37th annual Entrepreneur of the Year Awards have opened and will close on 31 August 2025. The awards aim to identify and support South African individuals who run successful SMEs. 'The awards are open to owners of SMEs across three categories: Emerging Entrepreneur, Small Business Entrepreneur, and Medium Business Entrepreneur. 'Five finalists will be selected in each category, with the finalist who makes the most contribution to employment and skills development in the country being awarded the Job Creator award.' Winners will be announced at an awards ceremony at the end of October 2025 and share in R2 million worth of prizes, including cash awards, mentorship, technical assistance and business exposure opportunities. Entrepreneurs interested in participating can enter at NOW READ: From cutting hair on the stoep to franchising: Legends Barber named top entrepreneur for 2024
Zawya
04-04-2025
- Business
- Zawya
South Africa's SMEs optimistic about 2025 economic climate, but will it last?
South African small and medium enterprises (SMEs) entered 2025 with an encouraging sense of optimism. This is according to the latest SME confidence Index, conducted by Business Partners Limited, which reveals that over 58% of respondents felt optimistic about the economic climate in 2025. David Morobe, executive general manager: Impact Investing at Business Partners Limited, notes that this surge in confidence is a positive shift for a sector that has weathered significant economic uncertainty in recent years. 'SMEs have displayed resilience and renewed hope for business growth in 2025, supported by factors such as the first interest rate cut since 2020 and lower inflation,' he says. Confidence indicators show positive trends Year-on-year, SME confidence improved across multiple areas. Levels of confidence that the South African economy will be conducive to business growth in the next 12 months increased by 9 percentage points, reaching 69%, while confidence levels that SMEs will experience business growth in the next 12 months rose to 84%, a 6-percentage point increase year-on-year. Confidence levels in access to business finance also climbed to 64% - up by 7 percentage points year-on-year – while levels of confidence in finding skilled staff improved to 72%, up by 3 percentage points year-on-year. Despite these gains, confidence in certain key areas remains subdued. SME confidence in South Africa's labour laws supporting business growth declined by 4 percentage points year-on-year to 59%. Whereas confidence in government efforts to foster SME development increased by 5 percentage points year-on-year, it dropped 3 percentage points quarter-on-quarter to 47%. Can this optimism withstand external challenges? While SMEs started the year with confidence, several external factors have already posed challenges for business growth in the first quarter. The national return of loadshedding and the introduction of water shedding in Johannesburg raise concerns about operational stability. Additionally, while South Africa's Government of National Unity (GNU) has remained somewhat stable, policy differences surrounding the outcomes of the rescheduled Budget Speech and international relations could impact SME confidence. 'SMEs thrive on stability, and while their confidence was high going into 2025, it remains critical that external factors such as infrastructure reliability be addressed. It is also important that investment into initiatives that stimulate economic growth and advance cooperation among Government leaders is prioritised to support sustained business growth,' says Morobe. The top three challenges identified in the SME Index are cash flow, economic conditions, and funding. While late client payments continue to be a concern, h the confidence that clients will pay on time has remained at 72% quarter-on-quarter. However, this represents a 3-percentage point improvement year-on-year. What SMEs need to thrive Access to finance remains a critical factor, with SMEs indicating importance levels of 86% when it comes to funding as essential for growth and sustainability. The importance of access to SME-specific information and resources increased to 85%, while mentorship remains highly valued, with an 83% importance rating. Social media as a marketing tool gained further recognition, rising to 86% in importance, a 2-percentage point increase year-on-year. Infrastructure concerns and opportunities For the first time, the SME Confidence Index explored perceptions of local infrastructure and its impact on business success. While a majority of SMEs view road (53.85%), water (62.35%), and waste/sanitation (61.65%) infrastructure in their business areas as suitable, a notable percentage of respondents indicated that infrastructure remains inadequate or only slowly improving. 'The findings highlight the need for ongoing investment in infrastructure to ensure businesses can operate optimally,' says Morobe. 'The government's commitment to accelerating infrastructure investment, as outlined in the recent 2025 Budget Speech, is a step in the right direction,' he concludes. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
