The State of South African Small Business 2026
A snapshot of the opportunities and challenges facing small businesses, as well as trends in technology adoption and preparing for the future
Small businesses choose strategy of steady growth and stability
Small businesses are leveraging digital tools and adapting revenue models for operational resilience. 80% have grown their revenue in the last year, yet despite this momentum, the majority (84%) are prioritising steady growth and stability over aggressive expansion in 2026.
Key insights from the report
Digitalisation powering resilient growth
More than eight in ten (85%) say digital adoption is a top or significant priority in the year ahead.
Cash flow remains a pain point
62% experienced cash flow issues over the past year, and 42% say they struggle with late payments.
Accountants remain valuable business partners
77% of small businesses agree their accountant is their business’ most trusted advisor.
Technology as an engine for survival and expansion
Working smarter with automation
39% of businesses have connected their digital tools so they can share information automatically
Adopting AI to boost productivity
52% are using AI daily or weekly to create content (52%), analyse data (50%), and automate processes (44%)
Tools to improve cash flow
Nearly half (45%) of businesses are using online invoices with payment links to speed up collections
Technology has been critical in creating consistency for my business. Digital tools like Xero give me real-time visibility of cash flow and expenses, so I can smooth out seasonal dips, plan ahead with confidence and stay focused on my athletes.
Colleen Browne, Founder, Southern Summits Trail Tours
State of Accounting: Trends and opportunities
We continue to see resilient growth amongst accountants and bookkeepers. Over the past year, 76% of practices have seen revenue growth. Much of this success has been driven by expanding their services, gaining new clients, and using technology - including AI - to boost productivity.
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AI is improving practice efficiency and revenues
Widespread adoption
79% are using AI in some way to complete day-to-day tasks, with 62% using AI daily or weekly
The AI dividend
47% of those using AI see significant time savings which are being reinvested into revenue-generating tasks
Adding value for clients
Nearly half (49%) agree using AI has driven breakthroughs in clients’ financial health
Explore small business trends from our previous research
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