Small, Medium, and Micro Enterprises (SMMEs) are the backbone of South Africa’s economy, contributing 60% of the labour force and being central to job creation. However, despite their significant role, many face challenges such as limited access to funding, market reach, and compliance requirements. Studies indicate that five out of seven SMMEs fail within their first year, highlighting the struggles small businesses endure in a competitive economic landscape.
In the tourism sector, SMMEs make up 39% of the industry, including artisans and small accommodation providers. While many have the potential to thrive, accessing broader markets—both locally and internationally—remains a key challenge.
Global platforms unlock opportunities for SA SMMEs
International trade platforms have emerged as powerful avenues for SMMEs to broaden their market presence. South African Tourism, through initiatives like Meetings Africa and Africa’s Travel Indaba (ATI), has created opportunities for small businesses to connect with global buyers. These platforms serve as key touchpoints for showcasing South African businesses to a broader international audience.
Over the past five years, 150 vendors have participated in these trade events, with SMMEs in the arts and crafts sector—such as jewelry makers and textile artisans—leveraging the exposure to build international relationships. At ATI 2024, vendors at the Sustainability Village reported that sales generated from the event made up 36% of their annual revenue, proving the effectiveness of such platforms in expanding their market reach.
The need for continued support and development
While trade platforms like ATI provide valuable access, South African Tourism stresses the importance of long-term business development and support for SMMEs. Many businesses, particularly those with limited resources, face challenges when trying to scale and maintain sustainable growth. Beyond participation in trade events, there is a growing need for entrepreneurial training, access to digital tools, and financial resources to support long-term sustainability.
An ATI 2024 vendor shared, “I received a R70,000 order four months after the event. For my business, it was extremely rewarding.” This illustrates the value of these opportunities, but sustained success hinges on addressing the broader challenges faced by small businesses.
Fostering sustainable economic growth
As South Africa continues its economic recovery, fostering the growth of SMMEs will be crucial for inclusive development. Policy-driven interventions, enhanced access to funding and markets, and the ongoing support of initiatives like Meetings Africa and ATI will play a pivotal role in ensuring that small businesses can thrive in a globalised economy.
By strengthening the support structures for SMMEs, South Africa can unlock the full potential of its small businesses, ensuring they remain resilient, innovative, and competitive in both local and international markets.
