Redefining small business success could be the shift we need to drive real economic progress in South Africa
South Africa’s small business sector contributes an estimated 34% to GDP and employs about 59% of the total workforce. Yet, despite their critical role in driving inclusive growth and innovation, only 6% of small, medium, and micro enterprises (SMMEs) secure formal loans to expand their operations, with 44% relying instead on personal savings.
Whilst we understand that investors must consider margins, revenue growth, and return on investment when making decisions, it's also important to recognise the broader value small businesses bring. Many are solving urgent social challenges, uplifting communities, and strengthening resilience in parts of the economy that are often overlooked. Without inclusive access to employment, basic services, and economic participation, our country risks increasing instability.
This question is central to the work of the SAB Foundation, which since 2015 has invested over R668 million into South African entrepreneurs — with R409 million in grant funding, R214 million in business support, R45 million in interest-free loans and R68 million in concessionary loans.
The Foundation’s focus extends beyond financial returns to driving meaningful impact, supporting women, youth, people with disabilities, and both rural innovators and small businesses to access funding, grow sustainable enterprises, and open up new economic opportunities.
“Success is not one all-encompassing definition,” says Bridgit Evans, Executive Director of the SAB Foundation. “Where there’s a need for innovative growth and funding for small business owners, there’s also an opportunity to rethink what success looks like, and how financial resources can help drive lasting social impact and inclusive growth.”
Over the last decade the SAB Foundation has supported 7 409 businesses tackling critical challenges across the country: 3 924 rural micro-enterprises, 3 159 entrepreneurship ventures, and 326 social innovation enterprises. Notably, over 90% of these businesses remain operational, highlighting their resilience and long-term potential. Collectively, these entities now turn over R2 billion per year, up by 119% from R951 million at inception, and have created more than 12 600 new jobs, while sustaining nearly 9 000 others.
To better understand and communicate the broader social value of its investments, the SAB Foundation now aligns its reporting with the United Nations Sustainable Development Goals (SDGs), offering a framework that embraces ethical growth, environmental stewardship, education, and inclusivity.
Take, for example, Bee Loved Honey, which is building one million beehives across rural South Africa to boost crop pollination, food security, and rural employment. Or Solar Lab in a Bag which generates income through its innovative digital training solutions. To date, it has trained more than 10 000 students and teachers in digital skills and has enabled 160 learners to access further training or launch their own businesses. Leafline, a social enterprise producing reusable sanitary products from pineapple fibre, has created jobs while diverting 20 000 pads from landfills and helping 7 000 girls stay in school.
“These are the kinds of outcomes we want to measure, not just job numbers, but the ripple effect on households and communities,” says Evans.
As outlined in the Foundation’s latest Impact Report, the reach extends far beyond financial investment. An estimated 85 000 livelihoods have been indirectly impacted, driven by job creation, economic activity and access to basic goods and services in underserved areas. More broadly, the Foundation’s work is contributing to lasting social change, expanding access to employment, basic services, and meaningful participation in the economy for those historically excluded.
“While the boardroom is often where big decisions are made, it is in the fields, workshops, and kitchens of our rural and informal economies where real transformation takes root,” says Evans. “While returns matter, inclusive access to capital, jobs, and economic participation is essential. Without it, inequality deepens and social stability is at risk. For a resilient future, we must create an environment where all SMMEs, not just low-risk ventures, can thrive.”
“South Africa doesn’t have a shortage of ideas, it has a shortage of access,” Evans concludes. “If we invest where others don’t, the returns, economic and social, speak for themselves.”
The full SAB Foundation 2024 Impact Report is available for download here.