Assessing the Landscape of Small Businesses and Cooperatives in South Africa: A Three-Year Longitudinal Study (2021-2023)
Mthente was commissioned by the Department of Small Business Development (DSBD) to conduct a three-year (2021-2023) longitudinal study with a cohort of small businesses and cooperatives across South Africa. The study aimed to assess the impact of government support programs, uncover growth inhibitors and opportunities, assess the performance of these entities, and obtain a longitudinal profile of them.
The methodology included a yearly review of literature, a quantitative survey, and in-depth interviews with experts. The study found that the small business landscape in South Africa was trying to stabilize to a new, post-COVID normal, but the 2023 survey results indicated a changing picture, revealing the sector’s resilience and vulnerability amid harsh socio-economic conditions.
Financing remained a challenge for small businesses and cooperatives throughout the study period. The study highlighted various challenges faced by these entities, including high costs of doing business, limited access to government support, a lack of clarity regarding support criteria, and a perceived lack of understanding of their needs by the government.
The study also identified the need for networks, mentors, diversification, and digitization to promote long-term success. The informal sector was recognized as requiring pre-formalization support to improve business survival rates.
