In May 2026, Small Business Development Minister Stella Ndabeni-Abrahams presented a budget of R3.036 billion for her department. Much of it is aimed at micro, small and medium businesses and cooperatives. It is real money, but it does not reach founders automatically. The founders who benefit will be the ones who are ready.
Where the money is going
| Programme | Amount | Who it is for |
|---|---|---|
| Township and Rural Entrepreneurship Programme | R710 million | Township and rural businesses, with the funding threshold raised from R1 million to R3 million |
| Imbali for Her | R300 million | Women-owned businesses |
| Youth Entrepreneurship Fund | R300 million | Youth-owned businesses, launching in Youth Month |
| TIA-SEDFA Innovation Fund | R300 million (planned) | Innovative businesses |
| Creative Sector Fund | R150 million | Creative businesses |
| Inyamazane Fund | R100 million | Businesses owned by military veterans |
The department also plans R1 billion in credit guarantees through Khula, and says it supported 288,123 small businesses in the previous financial year. One more change matters to many founders: the compulsory VAT registration threshold rose from R1 million to R2.3 million in turnover.
The announcement did not set out application steps for each fund. Follow the department and its agencies for opening dates.
What funders look for
We see the same pattern again and again: founders name funding as their biggest barrier, but many are not yet ready to receive it. Funders want to see a business, not only an idea. Before you apply, make sure you can show the following.
- A registered business with its compliance in order.
- Proof of demand, such as real customers, sales or signed orders, however small.
- Basic records: what came in, what went out, and your bank statements.
- A clear use of funds, showing what the money buys and what it will return.
- The smallest version tested, so the funding grows something that already works.
The honest take
Funding announcements create a rush, and many applications fail for avoidable reasons. Do not wait for funding to begin. Start with the smallest version you can sell, keep records from your first rand, and let that proof decide how much money you actually need. When a fund opens, you will be one of the few who is ready.