Glass Ceiling: Challenges Confronting South Africa’s SMME Community

Small, Micro, and Medium Enterprises (SMMEs) in South Africa are responsible for employing 50-60% of the country’s labour force and contribute towards 34% of GDP.With rising economic challenges in South Africa including decreased economic growth, a neglectful government, and rising unemployment – especially amongst young people, it is evident that there needs to be strong interventions to facilitate the growth of the SMME ecosystem to jumpstart South Africa’s economy.

A crucial step in determining these interventions involves understanding the daily challenges that SMMEs in South Africa endure. To understand these challenges, The Brenthurst Foundation conducted face-to-face interviews with 65 small business owners across South Africa’s major economic hubs – Johannesburg, Durban, and Cape Town.

Each business owner was asked about the broad set of challenges they face daily from the moment they open their business until they close. Questions then became more refined, where business owners were asked to identify a single key challenge, the length of time this has affected them, and what – if any – measures they have taken to mitigate said challenge. A subsequent series of questions were asked as they pertain to the challenge identified. For example, if loadshedding was the key challenge then business owners would be asked how many hours each day they are affected and the impact on gross revenue earnings. Finally, business owners were asked for their suggestions on how to resolve these issues with a particular focus on stakeholders.