Entrepreneurs demand action at post-budget dialogue

By Tarryn-Leigh Solomons

Entrepreneurs from across South Africa gathered at the V&A Waterfront on Friday, 4 July, to share their concerns and insights on the challenges faced by small, medium, and micro enterprises (SMMEs). The session, which followed the Department of Higher Education and Training’s (DHET) R142.4 billion budget presentation for the 2025/26 financial year, served as a platform for business owners to call for more effective and accessible support from the government.

The event, co-hosted by INSETA, SASSETA, and FoodBev SETA, saw business leaders engage in frank discussions about how government policies often fail to meet the real-world needs of small businesses. Despite the well-intentioned policies laid out in the budget, entrepreneurs made it clear that there is a disconnect between what’s promised and what actually happens on the ground.

Corrine Isaacs, Group Managing Director for Eden Risk Management, a security and risk management company, explained that although her company trains and employs a large number of young people every year, bureaucratic hurdles and a lack of clear communication prevent them from reaching their full potential. “We’re trying to help young people get jobs, but the system is slow, and it’s hard to get the support we need to scale up and train more people,” Isaacs said, pointing out that the security industry alone employs around 600 000 people, many of whom need ongoing development.

Tanya van Staden, founder of Seeds for Life, a cooperative that began as a backyard garden and is now a certified organic farm, reflected on the journey of her business. She shared how collaboration between small businesses has been key to her success. “We’ve been able to grow because we’ve made space for others to join us,” Van Staden said. But she also stressed that more needs to be done to make it easier for other small businesses to thrive, especially when it comes to market access and support from government.

Pascal Lugisani, who heads financial services at Sanam Life and Savings, highlighted a major issue in the financial sector: high turnover among financial advisors. “We lose around 64% of new advisors in their first year because they just don’t have the support or market access they need to succeed,” he said. Lugisani pointed out that the issue stems from a lack of guidance, resources, and mentorship, which many new entrepreneurs struggle to find.

Thamsanqa Mdontswa, CEO of SASSETA, admitted that sector education and training authorities (CETAs) could do more to engage with smaller businesses. “A lot of the time, it’s the bigger players in an industry that are being heard, and we end up missing out on understanding what SMMEs actually need,” Mdontswa said. He added that while CETAs are doing good work, there needs to be more communication and collaboration between large organisations, SMMEs, and the government to ensure that training programmes and other resources are better aligned with market needs.

In response to the entrepreneurs’ concerns, Deputy Minister of Higher Education, Science and Technology, Buti Manamela, acknowledged the gaps in policy implementation and expressed a renewed commitment to supporting SMMEs. “We know there’s a disconnect between what’s on paper and what happens in reality. It’s up to us to make sure that policies translate into meaningful change for entrepreneurs and small businesses,” Manamela said, promising that the government would work to improve communication with business owners to ensure policies better address their challenges.

The event also highlighted the critical role of SMMEs in South Africa’s economy. They contribute up to 60% of the country’s GDP and employ around 70% of the workforce. Despite their importance, many entrepreneurs feel that they are not getting the full support needed to succeed. From navigating tender processes to dealing with regulatory hurdles, business owners repeatedly pointed out that the systems in place often favour larger corporations, leaving smaller players at a disadvantage.

Van Staden spoke about how difficult it can be for new businesses to compete, especially when it comes to tendering processes that are often complex and difficult to understand. “We’ve had to teach ourselves everything, and it’s tough when you’re trying to grow and comply with all the regulations,” she said.

Isaacs echoed this frustration, mentioning that although her company trains hundreds of young people, she struggles to secure the resources needed to expand these training programs further. “There are too many silos and gaps in the system. We need to streamline the process and make it easier for small businesses to access the support they need,” she said.

For many, the solution lies in more direct and practical government intervention. As Mdontswa explained, CETAs must become partners with SMMEs, not just training providers. “We’re here to help, but the relationship has to go beyond just offering courses. We need to better understand the specific needs of smaller businesses and make sure they get access to the resources they need,” he said.

In his closing remarks, Deputy Minister Manamela acknowledged that while the government’s policies were moving in the right direction, it was clear that more needed to be done to bridge the gap between intention and action. “We need to listen more carefully to the experiences of entrepreneurs and adjust our approach accordingly. The future of South Africa’s economy depends on the success of our SMMEs,” he said.

The session at the V&A Waterfront served as a reminder that while government policies are important, the real impact lies in how those policies are executed. With renewed focus and collaboration, there is potential for SMMEs to thrive, create jobs, and contribute to a more inclusive and prosperous economy.