Small Business Funding Readiness Crisis: Only 36.8% of Businesses Were Found To Have Formal Financial Statements
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Guest – Darlene Menzies CEO of Finfind
According to the SA MSME Access to Finance Report 2025, the number of black-owned, women-owned and youth-led businesses have increased since 2018, and are now driving a much larger share of MSME (Micro, Small and Medium Enterprises) funding applications. Black-owned MSMEs accounted for 83.7% of all funding requests in 2024, a significant increase from 66% in 2018. Likewise, women-led businesses now make up 36.1% of funding applicants, up from 32%, and more than 50% of MSME funding requests are from youth-owned businesses. These gains reflect a positive trend toward a more inclusive and representative small business sector in South Africa.
However, these businesses face huge challenges accessing finance, not the least of which is that many of them are not funding ready. This is a key takeaway from the newly launched SA MSME Access to Finance Report 2025. The report’s data shows that most micro and small businesses lack basic financial recordkeeping systems – a major barrier when seeking capital.
According to the SA MSME Access to Finance Report 2025, the number of black-owned, women-owned and youth-led businesses have increased since 2018, and are now driving a much larger share of MSME (Micro, Small and Medium Enterprises) funding applications. Black-owned MSMEs accounted for 83.7% of all funding requests in 2024, a significant increase from 66% in 2018. Likewise, women-led businesses now make up 36.1% of funding applicants, up from 32%, and more than 50% of MSME funding requests are from youth-owned businesses. These gains reflect a positive trend toward a more inclusive and representative small business sector in South Africa.
However, these businesses face huge challenges accessing finance, not the least of which is that many of them are not funding ready. This is a key takeaway from the newly launched SA MSME Access to Finance Report 2025. The report’s data shows that most micro and small businesses lack basic financial recordkeeping systems – a major barrier when seeking capital.
