South African small businesses are experiencing an unprecedented boom, with more than 200 000 entrepreneurs processing 173-million transactions and driving over half a billion rand in measurable growth over the past year.
This is according to Yoco’s 2025 Exchange report showing how strategic digital adoption is reshaping their success.
Katlego Maphai, CEO of Yoco, comments: “Small businesses are the heartbeat of our economy. What we’re seeing in our data isn’t just resilience, it’s a transformation of how entrepreneurs operate, compete, and win.”
Retail merchants leveraging Yoco’s tools have generated a R74-million in revenue growth.
Gauteng emerges as a powerhouse, boasting 22% more merchants and average basket sizes 20% larger than in the Western Cape.
Online sales through Yoco Gateway in Gauteng outperform other regions by 35% compared to the Western Cape, and an astonishing 82% ahead of Mpumalanga.
Despite having 31% fewer merchants, Western Cape’s Food & Beverage sector outperforms Gauteng, generating 24% more revenue.
This sector sees notable success from targeted weekend brunches, driving over 20% of revenue in Cape Town alone. Nationally, Fridays and Saturdays consistently deliver a 14% increase in sales compared to weekdays.
The Hair & Beauty sector, particularly in Johannesburg, contributes significantly to the small business boom, generating over R324-million annually. December marks a crucial month, with a 28% spike in revenue nationwide.
Digital channels are increasingly crucial, with 43% of beauty product purchases now happening online via Yoco Gateway.
The impact of digital tools is clear, especially post-Covid, when businesses that relied on their physical presence only to sell were forced to step into the digital world to survive the market or close their doors.
Retail merchants using Yoco’s Point of Sale systems report a 32% revenue increase, while Food & Beverage businesses using POS solutions achieve an even higher growth rate of 41%.
According to Maphai, Yoco’s data identifies three keys to thriving in 2025:
- Timing Mastery: Understanding peak periods, from retail’s midday surge to the December beauty rush.
- Digital First Approach: Digital capabilities have become essential, not optional.
- Smart Capital Deployment: Strategic financing significantly accelerates growth.
“These 173-million transactions represent more than commerce, they signify job creation, community building, and grassroots economic resilience,” Maphai says.