First, the bad news. In the six months following Donald Trump’s April 2025 Liberation Day tariff announcement, exports by SA SMEs to the US dropped by 46%. Small, direct-to-consumer businesses were hit the hardest, according to the SME Export Index, published by SA international shipping platform Tunl.

‘SMEs represent jobs, entrepreneurship and the future of South African cultural exports,’ said Craig Lowman, CEO of Tunl. ‘The US tariffs have landed like a sledgehammer on our merchant community of small exporters, who are being priced out of the US market.’

The good news? While it’s become harder and more expensive (and, given the fluctuating dollar, less lucrative) for small businesses to ship goods to the US, improvements at home are making local supply chains more efficient, more robust and more accessible to local small businesses.

‘In logistics, we are dismantling bottlenecks in rail and ports that have throttled exports and raised the cost of doing business,’ Finance Minister Enoch Godongwana said in his 2026 Budget Speech. ‘Our intention is to bolster public-private investment in rail operations while retaining state ownership of rail infrastructure. The objective is to move goods faster, cheaper and more reliably.’

Whether on road or via rail, domestically or internationally, when goods move, money moves. And when money moves, businesses and economies grow. Supply chains can make or break a business – especially a small or medium enterprise (SME) that needs to get its goods to market quickly, cheaply and reliably.

Veroshen Naidoo, chief investment officer at consultancy Business Partners Limited, believes that while access to funding is essential for SMEs to grow, it is insufficient without an enabling environment. ‘An entrepreneur can secure a loan to expand operations, but if they are unable to operate on a day-to-day basis due to a lack of basic infrastructure, the return on that investment will be compromised,’ he says.

But enabling infrastructure is only part of the battle for small businesses, which often pay substantially more for identical shipping services than large corporates, purely because of economies of scale and volume-based pricing structures.

‘Logistics costs are usually at the level of around 10% to 25% of a company’s total sales,’ Vitali Savryha, founder of the Ardi group of companies, writes in a recent blog post. ‘Small businesses remain particularly vulnerable, due to limited negotiating power and lack of volume in carrier relationships.’ His is an international (primarily US) perspective, but it holds true everywhere. SMEs have to punch far above their weight to compete on the logistics front.

This challenge is also echoed by Thato Moloi, president of supply chain management association Sapics. He argues that when it comes to reaping the benefits of supply chain optimisation – including efficiency enhancements and cost savings – SMEs are being left behind because they lack the necessary skills and resources.

‘SMEs have a crucial role to play in the national economy as major sources of employment and drivers of inclusive economic growth,’ he says. ‘However, they are not supported, and their growth is hampered by a lack of capital and limited access to skills development. A major contributor to the growth and development of SMEs is an understanding of operations and supply chain management best practices.’

The problem, he suggests, is not that small businesses don’t want to develop the necessary skills; it’s that they simply don’t have the capacity to do so. ‘Small businesses have so many responsibilities, and so many things to consider, that the critical supply-chain function is often overlooked,’ he says. ‘But it can make or break the business and is increasingly important in today’s complex and volatile business environment.’

Yet, despite these obstacles, digital technology is fast emerging as an equaliser, helping small businesses bridge the skills and market access gaps. ‘As digitalisation accelerates, market share is no longer won purely through fleet size or geographic reach,’ says CG Selva Ganesh, CEO for Southern Africa at In2IT Technologies. ‘The real differentiator today is digital agility. Logistics leaders are increasingly building platforms that connect shippers, carriers, depots and customers into seamless digital networks. These platforms enable real-time tracking, instant documentation, smart scheduling and responsive issue resolution, turning logistics from a transactional service into a value-driven partnership.’

Ganesh says that companies that diversify into integrated, end-to-end supply chain solutions are seeing the greatest returns. ‘The organisations achieving the most success are those that can scale digital networks quickly, integrate partners smoothly and maintain trust through data-driven transparency,’ he says.

Across industries and geographies, there’s a growing sense that digital tech could, at least in part, be the solution SMEs have long been looking for. This is supported by a 2025 survey by the US Chamber of Commerce, which found that 8 out of 10 small business owners credited AI and technology with helping them navigate inflation, supply chain issues and access to capital.

Digital tech enables small businesses to compete without having to piggyback on corporate supply chains or hope for the day that a forward-thinking corporate procurement lead finds it in their heart to give a small business its big break. Most SMEs have to figure it out for themselves. Tech is helping them do that.

Like many in the industry, Nelson Teixeira, MD of operations for sub-Saharan Africa at global giant FedEx, has seen how supply chains nearly fell apart during the Covid-19 pandemic, only to be rebuilt in a new, future-ready format.

‘The African Continental Free Trade Area continues to create new openings for regional trade, particularly as global supply chain disruptions highlight the value of diversified markets closer to home,’ he says. ‘At the same time, social commerce is enabling even micro-businesses to reach niche communities across borders, from artisanal foods to fashion, sometimes drawing international buyers. This shift is already reshaping SME strategy, with more South African brands thinking globally from day one.’

Teixeira says that logistics plays a critical role in enabling this growth by simplifying cross-border processes, managing customs complexities and connecting small businesses to international delivery networks.

‘South African entrepreneurs have never lacked ingenuity,’ he concludes. ‘What will set the most successful SMEs apart in 2026 is the ability to match that ingenuity with the right digital tools, the right partners and the confidence to pursue growth wherever it emerges. The businesses that stay alert to these shifts will not only withstand a difficult year – they will find new ways to thrive.’

Image: iStock