How AI can power a new era of growth for South African SMMEs

As small, medium and micro enterprises (SMMEs) increasingly turn to technology for a competitive edge, the South African economic landscape is changing. Artificial intelligence (AI) is emerging as a transformative force, offering these businesses new ways to enhance operations, drive innovation, and contribute to job creation at a time when unemployment remains high.

Similarly, many small businesses are already experimenting with AI, using it to communicate with customers (34%), manage information (32%) and analyse data (31%), according to a survey conducted by Xero.

AI offers powerful capabilities that can revolutionise small business operations, including delivering data-driven insights to support better strategic planning and market intelligence to enable agile and informed decisions without large research teams.

Beyond enabling smarter decision-making, AI enhances efficiency by automating routine tasks and enabling scalable growth — factors that directly contribute to increased profitability. Forrester’s report, New Technology: Projected Total Economic Impact of Microsoft 365 Copilot for SMB, underscores this connection, projecting that SMMEs leveraging AI-powered tools like Microsoft 365 Copilot could achieve a return on investment of up to 353% over three years, with a 20% drop in operating costs and a 6% revenue increase. For SMMEs, this kind of impact can be game-changing.

“For many entrepreneurs and small business owners, this means being able to focus on what truly matters: their customers, their employees and their mission. By adopting these technologies, they are positioning themselves to tackle challenges, innovate and create a stronger future,” says Lebogang Luvuno, B-BBEE executive at Microsoft SA.

Microsoft’s 2025 Work Trend Index highlights the rise of organisations that use AI to scale faster and operate more efficiently, otherwise known as frontier firms. For South African SMMEs, this marks a chance to leap ahead by adopting AI tools to boost agility and innovation — key traits of frontier firms, and critical for staying competitive in a rapidly evolving market.

Empowering SMMEs to lead the future: apply for Microsoft’s Emerging Partner Programme today

Microsoft SA is actively supporting SMMEs through initiatives like the Emerging Partner Programme (EPP) that helps black-owned ICT SMMEs grow into Microsoft Solutions Partners.

The programme represents a significant commitment to empowering SMMEs to become sustainable engines of growth, driving the expansion of local industries and strengthening SA’s economy through transformative technologies. 

“By equipping SMMEs with essential skills and resources, we aim to support their growth and success, ultimately contributing to a more equitable and prosperous South African economy,” says Luvuno.

The programme runs over 24-months, guiding SMMEs towards attaining Microsoft Solutions Area Designations, which helps them differentiate their expertise and showcase their capabilities with identifiable badging.

The results are tangible: in the past 18 months, Microsoft has trained 88 partners, comprising 548 individuals, which critically created 107 new jobs and 86 part-time jobs. Partners acquired 109 new customers with a combined revenue growth of R61m in 2024.

Microsoft SA is inviting qualifying SMMEs to apply for the 2025 EPP intake. Participating SMMEs will receive comprehensive support, which will include crucial elements designed to help businesses expand operations, reach new markets, and drive meaningful innovation.

Additionally, SMMEs will receive accelerated development of technical skills to attain Microsoft certifications and commercial capabilities through adoption and change management training as well as business development programmes and coaching. 

By joining the EPP, SMMEs can leverage Microsoft’s resources, networks, and technology, including AI, to build more sustainable businesses. This is an opportunity to gain essential skills, access potential funding, and increase market exposure, accelerating their journey towards success in the AI economy.

“Our goal is to ensure that black-owned SMMEs in the ICT sector are not only digitally enabled but also commercially empowered to thrive in a competitive market,” says Luvuno.

SMMEs are strongly encouraged to seize this opportunity to apply and leverage the resources and support offered by Microsoft to fuel their growth.

There is no cost to join the EPP for eligible businesses meeting the criteria. Applications close on June 15 2025. To apply, or for more information, visit the Microsoft EPP website. 

This article was sponsored by Microsoft.