Xero research depicts a tech-hungry market in strong need of support for skills and funding
Small businesses continue to display resilience in challenging times, with 83% growing their revenue over the past year and 90% optimistic about their future growth. This is according to new research from Xero, the global small business platform, shown in its 2025 State of Small Business Report.
Despite nearly two-fifths (39%) having concerns over political or economic instability and more than a quarter (27%) expecting challenges with service delivery like loadshedding, South African small businesses are beating the odds and showing optimism for the year ahead. The research shows that small businesses are planning to invest in upskilling staff (42%), hiring more staff (40%), and developing skills in new technologies like AI (39%) in the next 12 months.
Colin Timmis, Country Manager, Xero South Africa, said: “Entrepreneurial spirit appears to be stronger than ever amongst South African small businesses, but they are crying out for more accessible support, tailored training and better access to funding. But their hunger to invest in their people and in new technologies like AI is a testament to their forward-thinking approach. Not all small businesses want to grow but this research shows clear ambition among South African entrepreneurs.”
Gugu Mahlangu, CEO of small agricultural business, House Harvest, shares the prevailing sentiment of many South African businesses: “This year, I feel excited and deeply optimistic about where we’re heading. Despite the ongoing challenges in infrastructure and access to funding, House Harvest continues to grow powered by innovation, grit, and purpose. The key to our resilience? Staying curious, embracing technology and building networks that uplift other small farmers.”
Businesses eager to deepen tech use to unlock efficiency
In addition to technology adoption, small businesses indicated the top areas they need more support with are training and skills development (28%), and generating funding (28%).
Accountants and bookkeepers crucial to success
As small businesses embrace the future with confidence, accountants and bookkeepers are vital allies in a small business’ support system: for those that use them, 80% agree they are their most trusted business advisor. Small businesses say the most valuable areas of support their accountant provides are guiding business decisions (51%), navigating VAT and tax requirements (49%), and providing financial reporting and insights (45%).
You can read the full report on Xero’s website.
Survey methodology
Xero partnered with KLA to survey 414 small businesses with up to 200 employees and 105 accounting and bookkeeping professionals who work in practice in South Africa. Responses were collected from a mixture of job roles across a range of sectors. Fieldwork was conducted via an online research panel between 7 March and 20 March 2025.
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Janie Norton
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Xero research depicts a tech-hungry market in strong need of support for skills and funding
The post “Deeply optimistic”: South Africa’s business resilience shown as 80% of small firms grow despite challenges appeared first on The Home Of Great South African News. Read More
