;){kind=logo}
The Silent Crisis: SA SMEs are on a Three-Month Cash Runway. Is Your Business Ready?
Posted by Ponkie Thekiso on 21 October 2025, 17:00 SAST
South Africa's SME sector—the backbone employing over 13 million people—is facing an existential threat.
New research reveals a stark reality: more than half (52.8%) of small businesses are contracting, trading with difficulty, or at risk of closure. Many operate on razor-thin cash reserves of just three months or less.
This cash crunch is compounded by chronic payment delays, with over 90% of SMEs experiencing invoices lingering unpaid for 30, 60, or even 90 days. This devastating domino effect means businesses cannot meet payroll or invest in growth.
We must move past the "Revenue Trap"—the mistaken belief that rising sales guarantee healthy cash flow. Financial resilience is the only path forward.
Immediate Action Item: Establish a rolling 13-week cash flow projection, updated weekly, accounting for best, worst, and most likely scenarios to stress-test your resilience. Financial advisors recommend maintaining a cash reserve of six to eight months' expenses due to economic volatility.
.png)
