SMALL BUSINESS: Where have all the entrepreneurs gone in the startup age?
Not all business founders are looking for an exit or to give up equity to the venture capitalists, and that’s fine.
The modern South African small business founder/owner is different from their startup counterparts, as their primary focus is organic profitability and steady cash generation within a local market. In contrast, startup founders typically pursue rapid, exponential scalability through technology-driven innovation with global market capture in mind.
According to Shoprite's latest SME report, 32% of small businesses have operated for over 20 years, but 39% of these businesses employ fewer than five people throughout their lifetime. Thato Ntseare, head of venture investments at E Squared Investments, notes that this stark contrast to the startup ethos of high-risk, high-velocity growth, which is structured for venture backing, rapid team expansion, and liquidity events/exits.
Many South African small business founders, like Tanya du Bois of Naturals Beauty, have found success through organic growth and reinvesting all revenue back into the business. Du Bois discovered a demand for natural, organic personal care products after her son's autism diagnosis led her to eliminate environmental toxins. She started in her kitchen, using a 1960s recipe book, and later expanded her product range after receiving professional cosmetic chemist support.
E-commerce and direct customer relationships have become essential for scaling these businesses. However, older demographic segments (aged 60+) in South Africa still prefer physical stores. Specialized chains, such as Wellness Warehouse, introduce high storage, handling, and distribution fee burdens for small businesses.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
