I’m always encouraged when I see tangible support being given to entrepreneurs who are often held back by the lack of essential resources. This week, the Minister of Small Business Development, Stella Ndabeni-Abrahams, will be in Greater Tzaneen, Limpopo, to hand over much-needed machinery and equipment to 104 business owners.
This is more than just a ceremony; it’s about empowering people with the tools they need to turn their entrepreneurial dreams into reality.Many small businesses in South Africa face tremendous challenges, and a lack of funding and equipment are among the biggest obstacles.
According to a 2022 study by the Small Business Institute, an estimated 70% of small businesses fail within the first two years, with financial constraints and limited access to equipment being key factors. This often discourages aspiring entrepreneurs from taking the leap into business.
For many, even when they do start, the lack of resources eventually forces them to close their doors.That’s why initiatives like the Asset Assist Programme (AAP), Cooperatives Development Support Programme (CDSP), and the Informal and Micro Enterprise Development Programme (IMEDP) are so important.
“We know that without the right support, many of our small businesses would not survive, and that is why this equipment handover is so significant,” Minister Ndabeni-Abrahams stated.
These programmes, offered by the Department of Small Business Development, aim to provide critical assistance to Micro, Small, and Medium-sized Enterprises (MSMEs).I find the 100% grant offered by the IMEDP particularly inspiring. It’s a programme that gives informal traders the tools and equipment they need without requiring them to repay a cent. This kind of support is exactly what our entrepreneurs need to overcome the barriers of entry that have traditionally held so many back.
Minister Ndabeni-Abrahams also emphasised the importance of this kind of intervention, saying, “We are committed to ensuring that small businesses are given the tools they need to thrive. This is how we grow our economy—by investing in people.”
The AAP and CDSP programmes take it a step further. The AAP provides not just machinery, but also financial guidance and expert advisory services to MSMEs. This holistic approach is designed to help businesses become more sustainable and competitive. The CDSP, on the other hand, offers blended financing—combining grants and loans—so that cooperatives can purchase machinery, equipment, and infrastructure, which are critical for their success.
As I reflect on the current state of small businesses in South Africa, I’m filled with hope. Yes, the challenges are immense, but with the right support and resources, our entrepreneurs can overcome them. And the work being done by Minister Ndabeni-Abrahams and her team is a shining example of the government stepping up to ensure that small businesses are not left to struggle alone.
“Our mission is to empower these entrepreneurs so that they can contribute meaningfully to the economy,” said the Minister.I believe that with more initiatives like these, we can help small businesses not just survive but thrive—because when small businesses succeed, we all benefit.