South African SMEs Define Election Priorities
Small business owners report growing concerns regarding immigration and labour law enforcement ahead of the local elections.
Updated on Oct. 22, 2026 in Employment
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Business Partners Limited published its latest SME Confidence Index, revealing that 70.4% of small business owners have already selected their preferred party for the upcoming local government elections. Respondents cited municipal service delivery and the management of illegal immigration as critical factors influencing their voting decisions.
Why it matters
Business owners are prioritising a stable, fair operating environment, with many pointing to the insufficient enforcement of labour laws as a source of unfair competition. This survey underscores how local policy impacts the confidence of the small business sector.
The report finds that 83% of SME owners are confident in business growth over the next 12 months, while 74% express confidence in finding skilled employees. Conversely, only 63% believe the broader economy is currently conducive to growth.
The players
Business Partners Limited
This is a specialist risk finance company for formal small and medium enterprises in South Africa that provides lending, mentorship, and property management services.
The details
Nearly 80% of surveyed business owners stated that current immigration and labour law enforcement creates unfair competition, with 42.2% noting direct impacts from recent protests. While owners remain optimistic about their own growth, they highlight that rising fuel costs are expected to increase operational expenses.
Timeline
The SME Confidence Index data was recorded during Q2 2025.
Business Partners Limited published the index in Q2 2026.
South Africa will hold local government elections on 4 November 2026.
Macro View
This report mirrors the historical precedent of South Africa's Immigration Act becoming a central political wedge issue during times of economic stagnation. It indicates that local business confidence is now tethered to the political management of border and labour policy.
Small business owners should prepare for potential operational disruptions or shifting regulatory costs as local government elections approach. Entrepreneurs are advised to monitor policy changes regarding foreign labour, as these could directly affect staffing budgets and hiring strategies.
The takeaway
Entrepreneurs should focus on long-term growth planning while remaining cognisant of how political shifts in municipal governance might alter their local regulatory environment. Aligning business strategies with these emerging political priorities may help mitigate risks associated with future policy changes.
Further reading
For more on the labour climate, see the Employment section.
Source note: This article includes information reported by Bizcommunity.
Live Poll
Should local election candidates prioritize small business concerns to improve the economic environment in your area?
