As the Tshwane Economic Development Agency (TEDA) gears up to host its SMME Symposium on 6 May 2025, TEDA’s Board Chairperson, Dr. Kennedy Maimela, reflects on the impactful role small, medium, and micro enterprises can play in growing cities’ economies.
Small, medium, and micro enterprises (SMMEs) form the backbone of thriving economies worldwide, contributing to job creation and economic development.
Their significance is particularly pronounced in South Africa, where they address the pressing challenges of unemployment, poverty, and inequality.
By addressing their challenges and amplifying their strengths, we can unlock a future where SMMEs lead the charge toward a prosperous and equitable economy.
SMMEs: catalysts for local prosperity
SMMEs account for a significant portion of employment in cities, with some estimates suggesting they contribute to over 80% of jobs in South Africa’s economy, a trend mirrored in the City of Tshwane.
The recent State of the City of Tshwane address by Executive Mayor Dr Nasiphi Moya identified key drivers for the economic growth and recovery of the metro: infrastructure-led development, strong revenue collection, and attracting investment.
Central to this vision is the newly adopted Tshwane Economic Revitalisation Strategy 2025–2029, approved at the beginning of April 2025, which has identified priority sectors and high-impact projects to unlock growth. The aim is to attract R26-billion in new investment, increase Tshwane’s growth rate by more than 3%, and create 80 000 new jobs by 2029.
An important aspect of this growth is to create an enabling environment – a core task given led by the City of Tshwane – which includes investing in essential infrastructure like reliable roads, water, and electricity in strategic areas and improving the ease of doing business for both small and large enterprises.
With an eye on its important goal of economic growth, TEDA sees SMMEs as one of the key levers in driving inclusive growth, creating jobs, and expanding the economic sectors, with a particular emphasis on enterprises of the future.
SMME owners bring with them a new energy of innovation and agility, adapting to change more rapidly than formalised businesses. They also provide services in a different, and often more inclusive way, fostering diverse opportunities in new and unsaturated sectors of the economy, particularly in innovation and new technologies.
According to data from the Banking Association of South Africa, some researchers have estimated that, in South Africa, SMMEs make up 91% of formalised businesses and provide employment to about 60% of the labour force.
The association also suggests that SMMEs account for roughly 34% of the country’s gross domestic product.
To quote Arthur Goldstuck in the State of the SMME in South Africa 2025 report published by Shoprite, “South Africa’s small, medium, and micro enterprises (SMMEs) are a cornerstone of the nation’s economy, driving innovation, job creation, and inclusive growth.”
Through supporting emerging entrepreneurs, TEDA’s partnerships with SMMEs align with the United Nations’ Sustainable Development Goals, in reducing poverty (SDG 1), promoting decent work (SDG 8), and reducing inequality (SDG 10).
And their impact is dramatic, putting food on the table of communities within the townships and informal settlements. SMMEs provide job opportunities to historically disadvantaged groups, including women and youth, and foster inclusive growth and social upliftment.
TEDA sees entrepreneurial leadership as key to navigating the complex and dynamic business landscape. Yet, we must be aware of the significant hurdles SMMEs face, including a lack of entrepreneurial skills and financial resources, with over 70% folding within their first five to seven years.
Addressing these challenges requires enhanced training, better access to finance and to markets, and policies that reduce regulatory burdens. We are convinced that by fostering a culture of innovation and adaptability, SMMEs can overcome challenges and drive sustainable growth.
As the Shoprite report notes, “start-ups bring dynamism and fresh ideas but struggle with limited resources and market access. Midsized businesses contribute significantly to profitability and job creation, yet their scalability is often constrained by workforce management and regulatory complexities.
Mature businesses, while more stable, contend with macroeconomic pressures and the need for sustained innovation to remain competitive”.
Supporting SMMEs in the City
It is for this reason that TEDA, partnering with the Innovation Hub and the South African Electrotechnical Export Council, is hosting the 2025 SMME Symposium at the Innovation Hub on 6 May 2025.
We believe that to maximise the impact of SMMEs, all stakeholders must work together to create an enabling environment; cutting red tape, identifying and providing skills, offering financial support programmes, putting supporting infrastructure in place, and sharing soft skills such as marketing.
That is why a wide-range of stakeholders will be participating at the 2025 SMME Symposium. Representatives from the City of Tshwane, from TEDA, the Small Enterprise Development Finance Agency, the Department of Small Business Development, Department of Trade, Industry and Competition, the Gauteng Growth and Development Agency, and the Tshwane Automotive Special Economic Zone will be in attendance.
The theme ‘Township Economy – Building Future Industries’ sums up the raison d’être of the symposium, which will focus on helping SMMEs play a key role in future-oriented sectors, including renewable energy, green technology, the Fourth Industrial Revolution and consumer electronics and the manufacturing of new energy vehicles.
As we chart our path toward economic recovery and inclusive development, SMMEs must remain at the forefront of policy and practice.
They are not simply businesses; they are agents of change, weaving economic and social progress into the fabric of our local economy.