As South Africa prepares for the National Budget Speech later this month, attention is turning to whether government’s commitments to small and medium-sized enterprises (SMEs) will be backed by the fiscal support and implementation detail required to unlock real economic impact.
In his 2026 State of the Nation Address (SONA) delivered last week, President Cyril Ramaphosa reaffirmed the importance of SMEs in driving growth and employment, noting that if every SME in South Africa employed just one additional person, the country could create three million jobs.
The President also acknowledged the realities entrepreneurs face daily, including limited access to funding, constrained market opportunities and the burden of complex regulations and licensing requirements.
Government further committed to providing more than R2.5 billion in funding to over 180,000 SMEs, supported by a further R1 billion in guarantees, alongside proposed amendments to National Credit Act regulations aimed at improving access to credit at a lower cost.
These are meaningful commitments but the key test now is whether the National Budget Speech later this month will provide the fiscal backing and implementation detail required to turn these announcements into real 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 those commitments must be translated into funded programmes, implementable reforms and real support that reaches entrepreneurs on the ground,” Cooper adds.
For SMEs, the Budget is a fiscal moment that signals business confidence. It determines whether the environment will enable investment and expansion, or whether businesses will remain trapped in survival mode as they absorb the cost of infrastructure challenges, rising input costs and administrative complexity.
A practical Budget Speech must therefore go beyond broad statements of support. It must show how government will operationalise the commitments made in SONA, including clearer mechanisms for SME funding access, improved payment cycles for SME suppliers, streamlined licensing and regulatory requirements, and infrastructure investment that directly improves the productivity of businesses.
At the same time, South Africa’s financial institutions also have a responsibility to play their part in enabling SME growth. This includes supporting entrepreneurs with accessible and responsible funding solutions, as well as advisory support and tools that improve cashflow management and long-term business 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 prepares for the National Budget Speech, the true measure of success will be whether it strengthens the conditions for SMEs to start, manage and grow to continue to meaningfully support the businesses that remain central to job creation and inclusive economic growth.
