National context of entrepreneur and small business support in South Africa
- The Department of Small Business Development (DSBD) was allocated R2.4 billion for 2024/25, constituting 0.1% of consolidated government expenditure of R2.37 trillion for the financial year. Transfers to entities to support small enterprises account for over 80% of this, with most going to the Small Enterprise Development Agency and the Small Enterprise Finance Agency.
- As at April 2023, South Africa’s small, medium and microenterprises (SMMEs) contributed 40% towards the gross domestic product (GDP), as reported by the DSBD. However, only 37% of SMMEs are formally registered.
- The FinScope MSME Survey South Africa 2024 found that there are approximately 3 million micro, small and medium-sized enterprises (MSMEs) in South Africa, employing around 13.4 million people. More than 2.5 million microenterprises make up the sector, with 72% operating informally. About one in four small (23%) business owners are foreign national citizens. Only 30% of MSME owners are 35 years old or younger, even though 50% of the adult population are youth and constitute 60% of the unemployed population.
- The DSBD has committed to support 50 000 MSMEs and cooperatives, 30 000 township and rural enterprises and 10 000 youth-owned enterprises in 2024/25.
- In July 2024, the National Small Enterprise Amendment Bill was signed into law. It proposes the establishment of the Small Enterprise Development Finance Agency and the Office of the Small Enterprise Ombud Service to ensure an equitable trading environment for small businesses.
- In 2023, South Africa ranked 47th out of 49 economies on the Global Entrepreneurship Monitor’s National Entrepreneurship Context Index, which indicates the average state and quality of the entrepreneurial ecosystem in the country.
Overview of CSI spend
Entrepreneur and small business support was provided by 43% of companies and received 5% of average CSI expenditure.

Type of intervention
Average % CSI entrepreneur and small business support spend 2024 n=24
57%: Skills development for entrepreneurs/business owners
20%: Providing finance
15%: Providing infrastructure, facilities, and equipment
4%: Non-specific general donations
4%: Other
- Over half of CSI expenditure in this sector (57%) went towards skills development for entrepreneurs/small business owners. This, however, represented a significant decrease from 75% in 2023.
- With 20% of average CSI spend allocated, providing finance for entrepreneurs and small businesses was the second most supported category in this sector, moving from the least supported position with only 3% of spend in 2023.
- The average spend allocated to providing infrastructure, facilities and equipment increased to 15% in 2024 from 11% in 2023.
Read more about entrepreneur and small business support:
- Read the case study Driving transformation in financial services | ASISA ESD initiative.
Source: The original version of this article was published in the Trialogue Business in Society Handbook 2024 (27th edition).