This policy brief examines the funding gaps for small to medium enterprises in South Africa: the sustainability of SMEs requires better access to formal financial services. It first provides an overview of SMEs in South Africa, comprising information about the size of both the formal and informal small business sectors, their production structure, income contribution to various economic sectors, and employment contribution. This is followed by a look at access to funding for formal small businesses, particularly loans obtained by SMEs. It then examines government-backed financial support options available to SMEs, including credit and loan guarantee schemes. In conclusion, the policy brief outlines findings and recommendations.
For more about small business see: The Real Economy Bulletin – The State of Small Business in South Africa 2024