Why digital disruption could be the biggest opportunity SA SMEs face
According to the FinScope MSME South African 2024 survey, the three million SMEs in South Africa employ about 13.4 million people. And every one of these businesses is facing the challenge, and the opportunity, of digital disruption.
Technology is reshaping the way businesses operate: it extends reach, accelerates pace, and raises competitiveness. For today’s entrepreneurs, the question is no longer whether digital change will arrive, but how to harness it.
Where the opportunities lie
Market access. Social media, Shopify, Takealot and Amazon have lowered barriers to entry, giving entrepreneurs instant reach into local and global markets at a fraction of the cost once required.
Payment acceptance. QR codes, payment links and smartphone tap-to-pay tools make it possible for businesses to accept payments from anywhere, without major upfront investment.
Operational efficiency. Cloud-based tools that integrate payroll, invoicing and client records give SMEs clearer financial visibility, strengthen their case when seeking funding, and free up time for growth.
Each of these developments improves efficiency and resilience, with ripple effects across employment and economic growth.
The role of AI
Artificial intelligence illustrates both the promise and the complexity of disruption. While widely recognised, AI’s value only emerges when it is applied to practical use cases, such as automating customer engagement, analysing payment behaviour or identifying new market opportunities.
Rather than viewing AI as an intimidating technology, business owners should see it as a set of tools to deepen customer insights and respond to shifting consumer behaviours.
Informal economy adoption
Digital disruption is not limited to formal SMEs. Spaza shops and township businesses are adopting payment devices that allow them to move away from cash and into digital ecosystems.
In South Africa, where Android dominates the mobile market, enabling contactless payments on these devices can unlock inclusion for thousands of micro-entrepreneurs. Once data begins flowing through these channels, it creates insights into pricing, sourcing and funding potential.
Building the right ecosystem
Globally, ecosystems that support small business growth have proven to drive GDP and employment. Sweden’s SMEs, for example, contribute around 60% to GDP.
Achieving a similar impact in Africa will require a focus on sustainability, intuitive technology, accessible markets, inclusive payment systems and actionable customer insights.
Entrepreneurs who embrace these tools will be better positioned to create jobs, build resilient supply chains and strengthen communities. And for larger corporates, the challenge is to act as enablers, ensuring that digital technologies expand inclusion, rather than deepen exclusion.