World SME Day on 27 June is supposed to be a celebration of entrepreneurial grit. But for most small businesses in South Africa, it also exposes a harsh reality: only 1 in 4 SMEs raise enough capital to grow . The rest remain stuck unable to hire, scale, or launch because their funding asks go nowhere.
And its not because money isnt available.
Capital isnt scarce in South Africa. Fundability is, says Luncedo Mtwentwe AGASA , Managing Director of Vantage Advisory and host of the SAICABiz Impact podcast. Most startups arent investor-ready and by the time they realise this, its already too late.
Funding Is Not a Lifeline. Its a Skill.South Africas entrepreneurs often make the same mistake: they only start looking for capital when the runways almost gone. By then, desperation has replaced strategy. Its no longer about potential its about patchwork, says Mtwentwe.
This reactive approach hurts startups at every level. Valuations take a knock, investor confidence drops, and founders lose leverage. Instead, Mtwentwe believes investor readiness must become a core leadership skill developed long before funding is needed .