Small and medium enterprises (SMEs) are the backbone of South Africa’s economy, yet cash flow continues to be one of their greatest challenges. According to the State of South African Small Business 2025 report done by Xero in partnership with KLA, 28% of SMEs have highlighted that accessing funding is a top priority for the year ahead, alongside expanding their operations (26%) and adopting new business models (26%). Without reliable access to capital, many SMEs struggle to scale, innovate and even survive in an increasingly competitive market.
At Old Mutual Corporate, we believe that access to funding should be simple, efficient and tailored to the unique needs of each business. This is why we developed SMEgo, a digital platform that allows businesses to apply for multiple funding options in a few simple steps. By minimising paperwork and streamlining the application process, SMEgo helps SMEs with business and personal loans, purchase order, trade, asset, contract and supply chain finance transparently. Businesses only need to upload documents once, and they are guided throughout the process.
The importance of such platforms cannot be overstated. SMEs do not operate in isolation. They rely on networks, advisory support and, critically, digital tools to thrive. The same report highlights that 80% of small businesses consider accountants and bookkeepers their most trusted advisers, offering guidance that goes far beyond tax compliance. With the South African Revenue Service digitising tax filing processes, including the MobiApp and eFiling, more than 39% of SMEs now file taxes digitally, simplifying compliance and freeing up time to focus on growth.
Technology also plays a crucial role in unlocking efficiency and productivity. Cloud-based solutions help businesses better manage finances (58%), improve operations (42%), reduce administrative tasks (40%) and enable work from anywhere (46%). Yet barriers remain: 38% of SMEs lack resources or skills to fully embrace new technology, and 35% struggle with integrating digital tools into existing systems.
These gaps highlight the need for funding solutions that are not only accessible but also supported by guidance and advisory services, helping SMEs fully leverage digital tools to grow and compete.
Innovation, simplicity and support
Access to funding is about more than survival. It enables SMEs to seize opportunities, invest in innovation and position themselves strategically for growth. Whether it’s scaling operations, fulfilling large contracts, adopting new business models or entering new markets, funding combined with digital efficiency and expert advice provides a solid foundation for success.
The business landscape will continue to evolve, and SMEs that can access flexible funding, leverage technology and tap into expert advice will be better equipped to thrive in a competitive environment. Platforms like SMEgo demonstrate how innovation, simplicity and support can combine to address the persistent funding gap in South Africa, empowering entrepreneurs to make confident, strategic decisions.
Capital is the lifeblood of a business. Providing simple, tailored and efficient funding solutions ensures that SMEs can continue to innovate, expand and contribute meaningfully to South Africa’s economic growth. Supporting SMEs with both capital and capacity will be critical to ensuring they not only survive but thrive in an increasingly dynamic and demanding market.
Nobesuthu Ndlovu is director: SME at Old Mutual Corporate.
Top image: Freepik.com.
Sign up to Currency’s weekly newsletters to receive your own bulletin of weekday news and weekend treats. Register here.
