South African small and medium enterprises (SMEs) have entered the local government election period with clear expectations around the conditions needed to operate, invest and grow. Municipal service delivery, good governance and the effective management of illegal immigration have emerged as leading concerns influencing how SME owners intend to vote in the upcoming local government elections. This is according to the latest SME Confidence Index by Business Partners Limited, which reveals that 70,4% of business owners surveyed have already decided which political party or candidate they intend to vote for. A further 17,6% remain undecided, while 6,6% said they do not intend to vote and 5,3% preferred not to answer. “These latest survey findings are significant as they confirm that the vast majority of SMEs are highly engaged and intend to vote in the upcoming elections, with more than two-thirds having already made up their minds on their preferred candidate,” says Jeremy Lang, MD of Business Partners Limited. “This means political parties have relatively little room to shift SME sentiment, with only 17,6% of business owners still undecided and potentially open to changing their vote. ”
When asked to rank eight factors according to their influence on voting decisions, respondents placed safer towns and cities, support for SMEs, investment and job creation, and reliable water supply among the more influential considerations. The effective management of illegal immigration also featured prominently as a consideration, alongside road infrastructure, electricity supply, honest leadership and municipal service delivery. “These findings suggest that SMEs do not view immigration management in isolation, but as part of their broader expectations around effective governance, regulatory enforcement and a level playing field for business,” says Lang. Almost eight in 10 respondents (78,7%) agreed that insufficient enforcement of immigration and labour laws is creating unfair competition for South African SMEs, with 55,4% strongly agreeing and 23,4% somewhat agreeing. “For SMEs operating in a challenging economic environment, compliance comes at a cost. Business owners are therefore understandably concerned when they perceive that businesses operating outside regulatory requirements may have an advantage over those that comply,” says Lang. “The findings point to a need for greater consistency in enforcement to support a fair and sustainable operating environment. ”
This concern is also reflected in SMEs’ perceptions of undocumented employment. Almost two-thirds (65%) believe that the employment of undocumented foreign nationals is common within their industries, with 43. 1% describing it as very common and 21,9% as somewhat common. The issue has also had a direct operational impact for some businesses. While 51,2% of SMEs said recent marches and protests relating to illegal immigration had not affected their businesses, 42,2% reported that they had been impacted either significantly or to some extent.