Small Business Growth Index

Small Business Growth Index

South Africa’s small, medium, and micro-enterprise (SMME) sector is a key driver of economic activity, employment and innovation. Of the estimated 2.67 million SMMEs in South Africa, approximately one-third operate formally, while two-thirds are informal. Collectively, the sector provides an estimated 11.4 million jobs, with small and medium enterprises (SMEs) comprising 91% of formal businesses, contributing around 60% of employment and approximately 34% of the national GDP. Despite their critical role in the economy, SMMEs face persistent challenges that inhibit growth and sustainability. The Small Business Growth Index (SBGI) was designed to provide a comprehensive understanding of the SME landscape (50 or less employees), offering data-driven insights to inform policy interventions, improve business strategies, and enhance SME resilience. The lead parties involved in the SBGI initiative include Absa Bank’s SME Business Unit, the South African Chamber of Commerce and Industry (SACCI) and the Bureau of Market Research, as the research partner.