With the 2025 matric results now released, a new cohort of young South Africans faces entry into a labour market that remains deeply constrained. South Africa’s official unemployment rate recently stood at about 32.9%, one of the highest globally, even before new school leavers entered the workforce. Youth unemployment remains particularly severe, with nearly half of young people aged 15 to 34 unable to find work or active labour-market opportunities.
This context amplifies the role of SMEs as the most immediate engine for absorbing new labour market entrants. SMEs already play a critical part in South Africa’s economy, providing 60% of employment and contributing approximately 34% of the national GDP. However, many of these continue to encounter significant funding constraints that restrict their ability to expand operations or hire at scale.
“Matric results are an important milestone, but for many young South Africans, the hard part is just beginning,” says Nicole Swart, Managing Director at Merchant Capital. “Our labour market does not have enough formal jobs waiting for them. If we are serious about expanding opportunity, we must ensure that viable small businesses can access the funding they need quickly to support their business and grow, in a way that aligns with real trading conditions.”
Despite SMEs’ contribution to employment, access to suitable finance remains a persistent challenge. Seasonal cash flow fluctuations, strict collateral requirements, and lengthy approval timelines often prevent small businesses from securing capital when they need it most. According to at least one survey, there is an urgent need to address financial exclusion and enable broader participation of micro-, small-, and medium-sized enterprises in the economy.
This is not just about credit. It is about practical, timely support that allows businesses to invest in stock, equipment, premises, and staff to take advantage of opportunities and have the operations to deliver. Slow or rigid funding processes effectively force some businesses to delay or forego growth opportunities.”
Merchant Capital offers growth funding designed to address the realities of small-business cash flow. Decisions are made rapidly, and repayments are structured in line with daily or seasonal revenue patterns, reducing pressure on businesses during slower months and enabling them to scale when conditions permit.
This model is particularly relevant as South Africa seeks to stimulate job creation beyond the public sector. Small businesses often respond more flexibly to hiring demand than larger employers, especially in retail, services, hospitality, and local manufacturing. However, the sustainability of this potential relies on access to appropriate finance that keeps pace with opportunity.
“When small businesses have confidence in their funding position, they make bolder decisions about hiring and investment. Faster access to growth funding strengthens balance sheets and the employment pipeline that our economy urgently needs.”
The release of matric results also underscores the importance of entrepreneurship as a viable pathway for young South Africans who may not find immediate formal employment. Supporting existing SMEs through different funding options for SMEs such as the Merchant Capital’s asset-free growth funding, enables these entrepreneurs to grow and create first-job opportunities, apprenticeships, and entry points into skills development within real operating businesses.
“South Africa’s SMEs are already embedded in communities and play a significant role in sustaining local livelihoods. By giving these businesses the tools to act on demand, we help expand real economic opportunity for young people and support broader job creation across the country,” concludes Swart.
