Here’s what SMEs must prioritise in third quarter of 2026
· Citizen
Small and medium enterprises (SMEs) enter the third quarter with a little more macro stability, but no easy growth story.
Miguel da Silva, group executive: business banking at GoTyme Bank, described the third quarter as “a quarter of discipline and opportunity”, as there is very little room for complacency.
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“The country avoided a stall and the economy is still growing, but slowly,” he said. “Inflation has moved back up, fuel is biting again, interest rates remain tough and consumers are still watching every rand.”
Current economic situation
He noted that the GDP expanded by 0.5% in the first quarter of 2026, marking a sixth consecutive quarter of growth, supported by finance, agriculture, trade and transport.
The South African Reserve Bank (Sarb) has trimmed its growth expectations from 1.4% to 1.2% for 2026 and from 1.9% to 1.7% for 2027, while higher fuel and input costs continue to squeeze households and businesses.
Growth opportunities will therefore need to be earned through stronger customer relationships, operational efficiency and a focus on value.
What it means for SMEs
Da Silva said the implication for SMEs is blunt: businesses will need to compete harder for every customer, making pricing, service quality, and customer retention increasingly important.
“The ability to clearly demonstrate value will separate businesses that grow from those that merely maintain market share,” he said.
“Cash flow will remain a critical focus area. Although borrowing conditions have improved slightly, access to affordable capital remains challenging for many SMEs.
“Businesses that maintain healthy working capital, manage inventory efficiently, and keep a close eye on expenses will be better positioned to navigate uncertainty and take advantage of emerging opportunities.”
National Savings Month
He highlighted that July being National Savings Month matters as much for small businesses.
“For small businesses, saving is not a nice-to-have. It is working capital, stock cover, salary certainty and the ability to say yes when an opportunity appears,” said Da Silva.
“Small businesses that know what is coming in, what is going out and what can be safely set aside will be better placed than those operating month to month. The goal is not simply to survive the third quarter. It is to create enough financial breathing room to make better decisions.
“As South Africa’s entrepreneurial sector continues to demonstrate resilience, increased digital adoption among consumers is creating opportunities for SMEs that can sell, collect payments and serve customers online.”
What to prioritise
The third quarter priority list is simple:
- Retain existing customers. They are cheaper to keep than replace.
- Know your cash position. Guesswork is dangerous in a low-growth market.
- Save with intention. Separate emergency funds, tax money and growth capital.
- Invest selectively in technology that improves efficiency or customer experience.
- Stay alert to local demand, especially in township, informal and underserved markets.
“This quarter may not deliver a dramatic economic lift, but it does offer SMEs a chance to strengthen their base,” added Da Silva.