Businesses warn consumers of price increases, while some foresee closure

Many small businesses are planning to increase prices of goods and services by up to 10% over the next six months due to rising operational cost, while few believe they can survive for more than a year under current pressures without external support. These are the findings of the latest edition of the Small Business Growth Index (SBGI) report, covering the second half of 2025. SBGI is compiled by Absa Business Banking, the South African Chamber of Commerce and Industry (SACCI), and the Bureau of Market Research (BMR) at Unisa.

More than 2 000 small and medium enterprises (SMEs) were surveyed with the aim of providing real-time, evidence-based insights into the performance and conditions shaping the small business ecosystem. ALSO RED:Small Business Growth Index to provide measures for success The survey found that the overall SBGI score for the period stands at 51.50 points on a scale ranging from 0-100, placing the sector in the “Vulnerable Zone”. This is an increase from 50.08 points.

The survey revealed that one in four SMEs operates in the “confidence” or “growth” range, while more than 40% remain in distress or experience strain, which underscores the continued need for liquidity relief, energy stability, and market access interventions. Vignesh Subramani, interim managing executive for SME Business at Absa Business Banking, said the findings show a sector at a critical inflection point. “Small businesses are moving from fragile survival toward a conditional and uneven recovery.” The survey showed that 33% of businesses reported growth, while 24% said they are trading with difficulty and 9% are at risk of closure.

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However, most businesses showed firm optimism. Fifty-nine percent anticipate moderate to strong growth over the next 12 months despite persistent cost and policy headwinds. Expansion strategic objectives are broad, with 92% planning to grow locally, 72% aiming to scale nationally, 45% expressing export ambitions, and 67% preparing to expand online.

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