There is an urgent need to equip entrepreneurs with the right tools.
It seems South African entrepreneurs can never catch a break. From navigating a cash-heavy economy to adapting to rapid digital transformation and finding new markets, running a business today requires far more than ambition. It demands discipline, resilience and a clear strategy.
The 2024-25 Global Entrepreneurship Monitor (GEM) report revealed that a growing number of people worldwide are discouraged from starting businesses due to fear of failure, Umesh Madhav, head of coverage for business and commercial banking at Standard Bank South Africa, said.
This underscores the urgent need to equip entrepreneurs with the right tools, support systems and confidence to overcome barriers and build sustainable enterprises.
“Resilience comes from clarity, planning and strong networks,” said Madhav. “Entrepreneurs who focus on these fundamentals are better equipped to thrive in competitive markets and uncertain times.”
Ten tips for SMEs
1. Keep it simple: know your ‘one thing’
Madhav said that across industries, the most successful businesses have a clear understanding of what drives their revenue. “If you cannot explain your business in one sentence, it is too complicated.”
2. Master cash-flow management
He emphasised that carefully planning inflows and outflows is critical. Businesses that manage liquidity effectively are better positioned to survive downturns and avoid unnecessary financial strain.
3. Separate personal and business finances
He cautioned against mixing personal money with business money. “Every successful entrepreneur eventually learns this lesson: if you mix your personal money with your business money, you do not have a business.
“You have a hobby with a bank account. Use proper business accounts, business tools, and business reporting, even if your turnover is small.”
4. Embrace digital tools early
Madhav emphasised that digital solutions are no longer optional.
Even small businesses can operate like established enterprises through payment platforms, invoicing systems and merchant services that improve efficiency and record-keeping.
5. Balance cash and digital payments
While digital adoption is rising, South Africa remains largely cash-driven. Businesses must strike a balance, ensuring safe cash handling while building digital transaction histories.
Future-proof your business
6. Build strong relationships and networks
He said that waiting until a crisis to form partnerships is a common mistake. Relationships with banks, suppliers, and peers often prove more valuable than capital during challenging periods.
7. Formalise your business
Many small and township businesses remain unregistered, limiting access to funding and growth opportunities. Formalisation opens doors to new markets, contracts, and long-term stability.
8. Prepare ahead of peak trading periods
Madhav added that early planning, such as collecting invoices, settling obligations and renegotiating supplier terms, can ease pressure during high-demand periods.
9. Explore new markets
Growth opportunities increasingly lie beyond local borders. Trade agreements and shifts in global demand, such as China’s move to grant zero tariffs on South African wine from May 2026, highlight the potential of export markets.
10. Build for longevity, not hype
Sustainable businesses prioritise consistency over perfection, cash flow over popularity, and systems over short-term hustle. Long-term success is rooted in discipline and adaptability.
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