Shoprite Next Capital Supporting SMMEs and creating an inclusive economy
Targeted Support for Female Entrepreneurs
A newly released report commissioned by the Shoprite Group underscores the urgent need for more tailored support for female entrepreneurs in South Africa’s Small, Medium, and Micro Enterprise (SMME) sector. The findings reveal that while women are more likely to own smaller businesses, they face significantly greater challenges in scaling due to limited access to funding, markets, and networks.
Systemic Challenges Identified
Conducted by World Wide Worx, the national survey gathered insights from 800 SMME owners and unveiled key systemic challenges that hinder growth in the sector. These include gender-based barriers, educational disparities, and geographic imbalances. Gauteng and the Western Cape dominate the entrepreneurial landscape, hosting nearly 66% of the country’s SMMEs, while provinces like the Northern Cape account for just 1%, illustrating stark regional gaps in business activity and support infrastructure.
Actionable Recommendations for Growth
To address these issues and unlock the full potential of South Africa’s SMMEs, the report outlines several key recommendations:
- Tailored financial products and mentorship for women entrepreneurs
- Support for start-ups through incubators, funding, and streamlined regulations
- Developmental support for mid-sized enterprises focused on workforce, technology, and market access
- Investment in infrastructure and subsidies in underserved, rural, or underdeveloped regions
Shoprite Next Capital: Empowering Small Businesses
In response to these challenges, the Shoprite Group is taking proactive steps through its dedicated business division, Shoprite Next Capital. This unit supports SMMEs with tools ranging from funding and marketing to packaging and data insights. Key initiatives include:
- CredX, a funding tool that offered R10 billion in working capital to 110 suppliers during the 2024 financial year
- R20 million investment in Enterprise and Supplier Development (ESD), supporting 64 SMMEs in the same period
- A 9% increase in spend on black women-owned suppliers, reaching R18.3 billion
Driving Inclusive Economic Growth
“SMMEs are vital for economic growth and job creation, especially in a country with some of the highest unemployment levels in the world,”
said Maude Modise, Enterprise and Government Relations Executive at the Group.
“Our objective with this report is to gain deeper insights into how best we can further support and equip South Africa’s diverse SMME sector to overcome systemic barriers and ultimately to create a more inclusive economy.”