South Africa’s small and medium enterprise (SME) sector is widely celebrated as the backbone of the economy. The National Development Plan (NDP) envisions that SMEs will create 90% of all new jobs by 2030. Yet despite this ambitious goal, the country continues to witness painfully high business failure rates.

One overlooked factor sits at the heart of this: marketing.

For many small black-owned enterprises — particularly those in townships and peri-urban areas — marketing is often seen as optional, a “nice-to-have” once operations are stable. Owners focus on keeping costs lean, making sales, and managing cash flow.

While these are vital, the absence of structured marketing keeps too many businesses invisible, underdeveloped, and disconnected from bigger opportunities.

The data is revealing: according to the Small Business Institute (SBI), only 14% of SMEs in South Africa employ more than 10 people. This means the majority of businesses remain trapped in survivalist or micro-enterprise mode.

The transition into medium-sized companies — those that create sustainable jobs and wealth — is being held back by more than just access to finance.

A lack of strategic marketing is the missing piece of the puzzle.

Why black-owned SMEs neglect marketing

Despite its proven impact, marketing is neglected by many small businesses in South Africa for several reasons:

1. Perception of cost
   Marketing is often equated with expensive television advertisements, billboards on highways, or high-profile campaigns reserved for corporations. For an entrepreneur hustling in a township economy, these look unattainable. The misconception is that without millions, marketing is simply out of reach.
2. Short-term mindset
   The daily grind of chasing invoices, paying staff, and covering rent pushes many owners into reactive thinking. Marketing, which requires a longer-term outlook, gets deprioritised. The focus is on “sales now” rather than “brand tomorrow”.
3. Knowledge gaps
   Many entrepreneurs have never been exposed to structured marketing frameworks. Without mentorship, training, or education, they may not understand how storytelling, customer segmentation, and positioning can directly increase sales and partnerships.
4. Distrust of agencies
   A history of “fly-by-night” service providers promising unrealistic results has created scepticism. Many small businesses feel burned after paying for logos or campaigns that yield no returns, deepening distrust of the entire marketing industry.

The Consequences Of No Marketing Plan

Neglecting marketing has measurable and often devastating consequences for small businesses:

• Low visibility
  Without deliberate promotion, most businesses remain unknown outside their immediate circle. They lose out on new customers, tenders, and collaborations.
• Weak customer loyalty
  Without consistent messaging, businesses rely heavily on one-off sales. Customers switch easily when a competitor offers a cheaper option, because no emotional or brand connection has been built.
• Missed opportunities
  Professional presentation matters. Funders, corporates, and government procurement officials often engage with businesses that present themselves as established brands. A lack of a strong brand image leads to missed supply-chain opportunities.
• Stunted growth
  The business stays locked in “subsistence mode”, unable to cross the threshold into medium-sized enterprise territory. The absence of marketing makes scaling beyond a handful of employees and clients extremely difficult.

What the data shows

The numbers illustrate the urgency of this issue:

• Failure rates: According to the Small Enterprise Development Agency (SEDA) and the Global Entrepreneurship Monitor, around 70% of small businesses in South Africa fail within their first five years.
• Economic contribution: SMEs contribute approximately 34% to South Africa’s GDP but only 24% to formal employment. This gap highlights how SMEs could be doing more to absorb labour if they had better strategies in place.
• Market access: A 2022 SME South Africa survey found that 58% of SMEs cite “lack of access to markets” as their single most significant barrier. This is a direct symptom of weak marketing and poor visibility.
• Job Creation Potential: According to the Organisation for Economic Co-operation and Development (OECD), in emerging markets, SMEs typically contribute 60–70% of employment. South Africa lags behind, underscoring the need for systemic shifts — including the adoption of structured marketing.

These statistics point to the same conclusion: until SMEs prioritise marketing, they will continue to underperform relative to their potential.

Shifting the mindset

The mindset around marketing needs a complete overhaul. First and foremost, marketing is not the same as advertising. It is not about who can afford a billboard on the N1 or a 30-second slot on Metro FM. Instead, marketing is about:

• Positioning: Creating a clear and differentiated space in the market.
• Storytelling: Articulating the founder’s journey, the value offered, and why customers should trust the business.
• Relationship building: Turning customers into loyal advocates who repeatedly buy and refer.

Even low-budget, high-impact marketing can transform visibility:

• Social media consistency: Using free or low-cost tools like Facebook Pages, WhatsApp Business, and Instagram to share stories, testimonials, and product showcases.
• Community engagement: Sponsoring local school events, running workshops, or collaborating with influencers in the township economy.
• Content creation: Simple video storytelling and professional photography showcasing products, services, and client experiences.
• Partnerships with agencies: Collaborating with small, local marketing firms that understand township dynamics and offer scalable packages.

Crucially, marketing literacy must be built into SME development programmes run by government agencies, incubators, and corporates. Teaching the basics of brand positioning, customer segmentation, and storytelling would empower entrepreneurs to secure larger contracts.

Success stories

Several black-owned SMEs have demonstrated how embracing marketing can change the trajectory of a business:

• Clothing labels: Township-based fashion brands that invested in storytelling on social media have gone from selling in local flea markets to stocking national retail stores.
• Food and beverage start-ups: Businesses that built strong brands and told authentic African stories have attracted partnerships with supermarket chains.
• Professional services: Firms that developed polished websites, thought leadership content, and consistent social media strategies have gained corporate and government contracts.

These examples show that marketing is not a cost centre but a growth engine.

Unlocking growth through marketing

If South Africa is to unlock the full potential of its SME sector, the following must happen:

• Entrepreneurs: Must view marketing as an investment, not an expense. Just as stock or equipment is necessary for operations, brand-building is essential for survival and growth.
• Government and incubators: Should integrate marketing mentorship, content support, and branding assistance into their enterprise development programmes. It is not enough to provide funding without visibility.
• Corporate supply chains: Must ensure that marketing capacity support is built into enterprise supplier development (ESD) initiatives. Small suppliers with strong marketing are easier to integrate into big value chains.
• Agencies: Need to rebuild trust by offering affordable, transparent, and impactful strategies explicitly designed for township and peri-urban businesses. This means flexible payment models, mentorship, and a focus on measurable outcomes.
• Media and business forums: Should amplify success stories of black-owned businesses that have scaled nationally by embracing marketing — shifting perceptions across the ecosystem.

Marketing is not a “nice-to-have”. It is the bridge between a subsistence business and a sustainable, job-creating enterprise. Without it, too many South African SMEs — especially those owned by black people — will remain invisible, locked in the daily grind without the ability to grow.

For South Africa to achieve its developmental goals and for black-owned businesses to rise to their rightful place in the economy, marketing must be reframed as the heartbeat of growth.

If SMEs, corporates, and government can align around this principle, the country can unleash a wave of scalable black-owned enterprises that create jobs, wealth, and hope.