Did you know that South Africa has around 3 million small and medium enterprises (SMMEs) collectively employing about 13 million people? As the country celebrates another Mandela Month, there’s an opportunity to reflect on the vital role these businesses play, not just as job creators, but as powerful agents for social change and community upliftment.

A famous African proverb says, ‘it takes a village to raise a child’, but David Morobe, Executive General Manager for Impact Investing at Business Partners Limited, says the same applies to building a strong SMME ecosystem and country. “Yes, we need government to create enabling environments, but the private sector, formal small and medium enterprises (SMEs) in particular, have the unique ability to foster meaningful grassroots impact.”

With SMEs contributing significantly to South Africa’s employment, their influence is far-reaching, not only economically but socially as well. These enterprises form the backbone of local communities, often operating in close proximity to the people they serve. However, Morobe believes that too many entrepreneurs underestimate the power they hold to drive social change. “Community upliftment should drive business. It’s not a corporate responsibility; it’s a shared one. And when SMEs lead by example, their impact is often more targeted, personal, and sustainable.”

From charity to community investment

Historically, Mandela Month has inspired a surge of one-off acts of kindness, ranging from soup kitchens to clean-up drives, but Morobe argues that resources permitting, the legacy of Madiba calls for more.

“Small businesses should start thinking of CSI not as charity, but as community investment,” he says. “Whether it’s apprenticeship, mentorship, local procurement, training or skills-sharing, everything adds up and every contribution matters.”

Morobe notes numerous examples of this already emerging across the SME sector. Sheldon Tatchell, founder of Legends Barbershop and the overall winner of the 2024 Business Partners Limited Entrepreneur of the Year® awards, runs community upliftment programmes through the Legends Give Back initiative – offering training, employment and support in under-resourced areas.

Similarly, Tshepo Letjane, founder of The Shaka Residence exemplifies how entrepreneurship can be a vehicle for social transformation. By merging student accommodation with social impact, Letjane has created programmes that go beyond housing. His programmes include running community sports development initiative, donating school shoes and providing mentorship for students from underserved backgrounds.

“These entrepreneurs show that you don’t need a big balance sheet to drive big change. You just need commitment and a community-first mindset,” says Morobe. 

Practical ways SMEs can give back

Due to unpredictable economic shifts and often transient commitments of large corporations, Morobe urges South African SMEs to be social entrepreneurs and anchor their purpose in long-term community upliftment. “This isn’t just about doing what's right, it’s about building resilience, trust, and lasting value,” Morobe explains.  It is also a way of encouraging young people in their communities to pursue entrepreneurial endeavours, as opposed to the current climate where social grants from government predominate. 

“That might mean mentoring fellow entrepreneurs or young people, passing on hard-won lessons and opening doors,” says Morobe. “It could also mean choosing to buy local products to stimulate local economies where they matter most. Others might offer internships or apprenticeships in a variety of trades, including tech or soft skills, thereby giving people a way into the world of work.” 

Even something as simple as partnering with a nearby school, NGO or church can amplify impact and deepen roots. These aren’t acts of charity, they’re smart business moves. 

“When businesses are anchored on social entrepreneurship and give with intent all year round, stronger communities and more inclusive economies are built. Uplifted communities are safer, more prosperous, and more resilient. You can’t say that’s bad for the balance sheet,” he concludes.