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That’s the view of Shawn Theunissen, founder of Entrepreneurship To The Point (eTTP) and Property Point, two of the country’s well-known small business development organisations.
“Budget 3.0 offers fiscal discipline, but not bold economic inclusion,” said Theunissen. “Small businesses remain on the sidelines, waiting for support to reach them. The continued absence of direct, scalable SME-focused policies risks deepening inequality, slowing recovery, and failing to unlock entrepreneurial potential.”
While the abandonment of the VAT hike is welcomed, the Budget introduced no new tax relief, grants, or enterprise funding mechanisms specifically targeting SMEs. At the same time, a fuel levy increase will raise input and logistics costs, particularly for township, rural, and informal businesses, without any corresponding support.
“This was an opportunity to fast-track real SME recovery through targeted tax breaks, working capital relief, and formalised access to state-backed funding. Instead, we saw continuity with little urgency,” Theunissen said.
The revised GDP growth forecast of just 1.4% for 2025 reflects a subdued economic outlook, which offers little stimulus to small enterprises. Despite years of commitments, no new mechanisms were introduced to address persistent credit and working capital gaps, and previously announced SME funding remains largely undisbursed.
“It’s not just about what’s missing in the new budget, it’s also about what hasn’t been delivered from the last three,” said Theunissen. “Funding delays, unclear disbursement channels, and inaccessible application processes continue to undermine the government’s promises.”
Despite growing calls for inclusion, Budget 3.0 introduces no focused measures to support women- or youth-led enterprises, both of which are disproportionately excluded from procurement, finance, and formal supply chains.
“Budget 3.0 failed to introduce or revitalise entrepreneurship training, innovation incentives, or enterprise support, especially for youth and women. This oversight is short-sighted, as these sectors offer high impact for job creation and inclusive economic growth,” he said.
He pointed out that SMEs account for 98.5% of all formal businesses in South Africa, provide over 60% of private-sector employment and contribute more than a third of the country’s GDP.
“Undermining SMEs is not a technical adjustment—it’s an economic risk,” Theunissen noted. “We talk about resilience, but we’re not equipping entrepreneurs to survive.”
Theunissen acknowledged several promising developments, including:
However, these long-term commitments lack clarity on implementation, timelines, and inclusion of SMEs as direct beneficiaries.
“We’ve seen bold announcements before. Without delivery, they don’t reach the businesses that matter most, especially in underserved communities,” said Theunissen.
He said to shift from symbolic relief to systemic change. He called for an urgent pro-SME fiscal strategy, including:
“This is not just about budgets – it’s about credibility,” Theunissen said. “If SMEs are the future of work and wealth in South Africa, then we need a budget that treats them as central to recovery, not peripheral to macroeconomic stability.”