Walk through any town or township in SA, and you’ll see what really keeps our economy moving. It’s not the big corporates or government offices — it’s the small, buzzing businesses that service communities.

From the spaza shop and hair salon to the logistics startup or local factory, small and medium-sized enterprises (SMEs) are where jobs are created, families are supported, and new ideas take shape.

 

In the Eastern Cape, this is especially true. The province’s entrepreneurs are problem solvers — they see opportunity where others see obstacles. But too many of them face the same uphill battle: finding funding, building networks and getting the right support to grow beyond survival mode.

As a steward of capital, Sanlam knows that money alone isn’t enough. What small businesses really need is an ecosystem — a circle of support that includes funding, mentorship, skills and access to markets.

Investments must be designed to back entrepreneurs at every stage — not just by writing a cheque, but by helping them build strong, sustainable businesses that can stand the test of time.

The journey of a small business

Every business starts with an idea — but turning that idea into something real takes grit and guidance.

Most small businesses go through five key stages:

1. Pre-startup — the idea stage: This is where the dream begins. Entrepreneurs test ideas, research the market, and figure out if there’s a real problem worth solving.
2. Start-up — turning the idea into action: The doors open, the first product launches and the learning curve begins. Cash is tight, risks are high and every customer counts.
3. Early growth — building momentum: There’s demand, and sales are climbing. Now the challenge is managing growth, improving systems, and keeping quality consistent.
4. Advanced growth — scaling up: The business is profitable, and it’s time to expand — maybe into new towns, hire more staff, or bring in investors. Strong leadership becomes key.
5. Expansion — broadening horizons: This is where businesses look beyond borders — new products, new markets, and long-term sustainability.

Getting ready for investment

Realising the full transformative potential of South African SMEs requires collaboration between individuals, organisations and investors who are committed to a shared vision for African prosperity.

Then, when it comes to funding, investors look for two things — that a business is impressive and prepared.

By impressive, they mean strong fundamentals: a solid market, a clear business model and a committed team.

By prepared, they mean ready to engage: understanding the investor landscape, being open to negotiation, and knowing what both want from the partnership.

Investors don’t just bring money: they bring experience, networks and access to opportunities. But entrepreneurs must remember: once a business takes up an investment, it becomes a long-term relationship. Entrepreneurs must spend time getting to know their investors well, because they are likely to be part of the journey for years ahead.

The team behind the dream

Ultimately, what separates success from failure is the make-up of the team. Markets shift, challenges come and go, but a strong, united team will find a way forward.

So, as an enterprising South African thinking of starting a business, focus on what problem you are solving, and why it matters. That’s what makes all the difference.

Building SA’s future, one small business at a time

At the recent launch of the Sanlam ESG Barometer: B20 Policy Impact Special report, Sanlam CEO Paul Hanratty shared: “As South Africans, we must each ask ourselves: how can I make a difference? The opportunities are there, however small they seem. It might be a business with 15 people, but we know the multiplier effect of that, for each of those 15 families. This is about harnessing human potential and spirit, and micro actions that add up to macro change.”

The truth is, capital alone doesn’t build businesses — people do. When entrepreneurs are equipped with funding, knowledge and the right support, they don’t just change their own lives, they build stronger towns, stronger provinces, and a stronger SA.

Click here to download a copy of the full Sanlam ESG Barometer: B20 Policy Impact Special Report.

This article was sponsored by Sanlam.