Challenges Facing South African SMMEs

Picture from: www.pexels.com

One would think that in 2019 with the unemployment and social challenges facing South Africa, SMMEs would take centre stage and be prioritized,  but that is not the case.

If you read on various social media platforms you will come across varying stories of how many have been frustrated by the very same government which promises to support Small Business in setting up and ensuring that they are geared for success.

Of course, starting a business is not an easy task which you can approach lightly, especially in an environment where you will be competing with already established companies which have been doing this for years and have deeper pockets than you do.


There are multiple barriers to entry in the market, but the ones I have encountered personally are:

1. Funding is very crucial when starting a business and irrespective how great your business plan is or how much your product is going to revolutionize the world, this is one hurdle that most SMMEs have to overcome. The SA Government has various funding agencies, but they come with unnecessary red tape. The other issue is private investors who want to see how much revenue you have generated before they can consider your project.
2. The location where your product will be showcased. Depending on which industry you are in, it is very rare that the major players in that space will even give you a chance just to put your product on the market. I come from the retail sector and I know if you come with a new product very few of the established retailers will list your product. Instead, they will tell you how saturated the market is and a month later releases their own product which competes with yours in the same saturated market. e.g. DJ Sbu just recently listed Mofaya with SPAR head office, months after the drink has been in the market.

Picture from: www.pexels.com

I respect the Asain and Indian business communities in how they stick together and support one another in driving their business forward and maybe it is high time that we as Black South Africans do the same with a more intensified effort.

The challenges that face our SMMEs are not going to be eroded overnight and we can't count on the government to do it for us. We need to stick together, form our own Venture Capitalist funds with the agenda of changing the status quo.

The next generation's future is in our hands. It is up to us to determine whether they go through the same struggles we went through or they build on the solid foundation we would have developed.