The number of South Africans planning to start a business has more than doubled since 2023, with almost one in five adults now intending to launch a venture within three years. Early-stage activity has also surged, from 11,1% to 14,7%. But fewer of those businesses are making it to maturity.
Established business ownership has dropped from 6% to 4% – not due to a shortage of ambition but deficits in finance, regulatory efficiency, market access and skills development. As a result, few last long enough to become the engines of jobs, innovation and exports the economy is counting on.
The stakes are high. South Africa’s National Development Plan sets a target for SMMEs to generate 90% of the 11-million jobs the country needs by 2030, contributing 60% to 80% of GDP in the process. SMMEs currently contribute closer to a third of GDP, leaving a wide gap between where the sector is and where policy expects it to be.
It is against this backdrop that Business Partners Limited is opening entries for the 17th annual SME Toolkit SA Business Plan Competition.
“We’re seeing a wave of young people willing to take the leap into entrepreneurship,” says Gugu Mjadu of Business Partners Limited. “But willingness doesn’t pay suppliers or secure funding.
Founders need structured planning, mentorship, and a clear sense of how funders actually evaluate a business before they can turn an idea into income.”
The difference often comes down to a single document. According to a Stellenbosch Business School study, 71% of small business owners regarded their business plan as important to their success. And further afield, a University of Edinburgh Business School study found that those who write a formal plan are 16% more likely to get their venture off the ground.
“Funders aren’t assessing enthusiasm. They’re assessing risk,” Mjadu explains. “A business plan shows whether a founder has thought through pricing, cash flow, market size, and growth, not just the product. Without that, even a strong idea won’t get past the first conversation.”
The competition is open to South Africans aged 18 to 35 and is free to enter. Participants receive business planning support, mentoring, and digital tools, along with access to funding and mentorship prizes. Entrants can also attend in-person planning workshops in Johannesburg, Pretoria, Soweto, Durban, and Cape Town, covering marketing, cash flow, and business model design.
Judges are seeing the field evolve. “The numbers are increasing year on year and so is the quality of the business plans submitted,” says Roy Lailvaux. “We’re attracting far more technology companies than in past years, alongside wellness and education ventures helping learners get a better matric and university entrance. We’re also seeing a marked rise in women-run companies, especially in industries that were previously male-dominated.”
Participants must submit their business plans by 30 November 2026, after which finalists will pitch their ideas to a panel of judges. Winners will be announced at an awards ceremony in Johannesburg in February or March 2027.
Last year’s winner, Sinothile Ntshangase, founder of Ndwedwe Animal Health, entered to challenge herself and gain the knowledge to turn her ideas into a viable enterprise. “Participating encouraged me to think strategically, strengthen my planning skills, and develop a clearer vision for growth. It helped me refine my business model and spot opportunities for expansion. Winning was a real milestone. It gave me confidence and credibility and opened doors to networking, mentorship, and further business development.”
She encourages aspiring entrepreneurs to participate, as it offers valuable learning experiences and can be a catalyst for business growth and personal development.
“This competition produces founders who walk in with a concept and walk out with a plan they can actually use, whether they place or not,” highlights Mjadu. “That shift in capability is what South Africa needs if today’s surge in entrepreneurial intent is going to translate into businesses that last.”