As we all get used to the new year and get started on our goals, for business owners it’s business as usual. For small to medium-sized enterprises (SMEs), the focus should be on optimising and transforming their businesses. This is not only to keep up with emerging technologies but also customer demand, regulatory changes and changing funding requirements.
We are going to provide industry insights from industry experts. The purpose of this article is to provide our SMEs with ways to better their businesses for long-term success in 2025.
According to the Bureau for Economic Research, growth for SMEs in 2025 is projected to reach 2,2%, which is double compared to 2024. This growth is not because of a single factor but because of multiple factors such as better access to funding and improved compliance.
Today we are going to look at some of the industry-specific trends to expect in 2025.
Artificial Intelligence (AI)
Emerging technologies such as AI have really changed the way businesses operate. From being able to build apps to streamlining inventory processes, emerging technology has forced many to change the way they think and operate.
For SMEs, there are still a few challenges when it comes to AI adoption. Co-founder of the Africa Academy of Artificial Intelligence (AAAI) Greg Serandos, says the main challenges faced by SMEs include limited internet infrastructure, low levels of AI literacy and a shortage of AI technical professionals.
“Many SMEs still rely heavily on manual processes, so digital transformation can be slow, and you can’t do anything with AI without clean, high-quality data. However, these hurdles can be overcome with strategic planning, basic upskilling, and affordable cloud-based AI solutions,” explains Serandos.
Looking at what’s coming next for SMEs in the AI industry in 2025, Serandos says SMEs can expect mainstream, production-ready AI solutions. These solutions will mainly be in areas such as marketing, automation, customer engagement and internal process optimisation.
“(AI) tools will be more user-friendly and tailored for smaller budgets, so SMEs can implement AI without massive upfront investments or specialised tech expertise. SMEs should start with free or low-cost AI-powered tools – like the paid versions (just $20/month in most cases) ChatGPT, Claude or Google’s AI add-ons in Workspace – for tasks such as content creation, customer support, and basic data analytics,” says Serandos.
Serandos’ organisation specialises in helping businesses with their AI adoption and integration. The company says in 2025, it plans to continue helping businesses with practical workshops and courses, AI strategy and roadmap and the piloting of AI solutions.
“We’re hosting short, focused courses and masterclasses (like the upcoming one at Henley Business School) to help (business) leaders understand AI fundamentals and implementation. We are also focused on partnering with corporates and SMEs to pilot AI solutions, share resources, and help develop essential skills,” says Serandos.
Now as much as AI is still the main topic, other industries will have their own new products and services for SMEs.
Digital Banking (Fintech) Trends to Expect
One of the technologies brought onto the world by the COVID-19 pandemic is digital banking. Digital banking is basically when banks operate online and provide services to their customers that were previously available only at bank branches.
In South Africa, the digital banks market is projected to reach $0,75 billion in 2025. This growth trajectory will lead to a market volume of $0,74 billion by 2029. This stat shows that the uptake in digital banking is gradually increasing.
Miguel da Silva, Group Executive of Business Banking at TymeBank, says 2025 will see SMEs become more competitive, customer-centric and technology-driven. He explains that due to the ‘boom’ in digital transformation and AI applications, SMEs will not struggle to find digital products but rather skilled employees.
“The real challenge will be in bridging the skills gap to effectively choose, adopt and deploy AI solutions. To realise its full potential, there needs to be a skills evolution that has increased focus on AI literacy,” says da Silva.
Although funding remains the biggest challenge faced by SMEs, da Silva expects there to be a positive shift in 2025 following the recent approval of the SMMEs and Co-operatives Funding policy.
Additionally, da Silva predicts there to be more digital tools and solutions from banks tailored for SMEs. He says these solutions need to address the unique needs of SMEs.
He says, “SMEs should get segmented services and solutions that align with their DNA. This can provide streamlined onboarding to make it as easy as possible for SMEs (especially those in the informal sector) to establish banking relationships.”
As one of the leaders in the local digital banking sector, Tyme Bank says it will continue to offer custom funding solutions for SMEs. For example, TymeBank customers can pre-qualify for business funding based on their business transactions.
“Fintechs (like us) are set to play a greater role when it comes to banking and access to capital for SMEs. Not all SME business owners can, or want, to apply for traditional bank loans. New fintech solutions (can) offer alternative funding models, including peer-to-peer lending, crowdfunding and blockchain-enabled financing platforms,” said da Silva.
These are just two of the industries set to reshape the way SMEs operate. To keep up with all these changes, you will need to start implementing digital transformation strategies into your business.
Access to Funding
2025 will see the fintech sector continue to provide innovative solutions for SMEs. We have seen this shift in how previously inaccessible financial services have since become more accessible to smaller businesses.
According to Old Mutual, new developments such as decentralised finance, mobile payments and blockchain will make loans more accessible this year. To further drive its point, Old Mutual recently launched a Tap2Pay feature on its small business platform SMEgo.
Platforms such as SMEgo are a benefit to SMEs because they provide them with the latest technology at an affordable price.
This year is the time to elevate your SME using technology. Read these trends expected and research how you can begin integrating technology into your business. By leveraging technology, you can deliver tailored customer experiences and scale your business easily.
