Small suppliers’ dreams take flight with Pick n Pay, but the risks might clip their wings

South Africa’s small and medium enterprises (SMMEs) are often hailed as the backbone of the economy, responsible for jobs and local innovation. But the reality is more sobering:

While they contribute close to 40% of GDP, more than 70% don’t survive beyond their first five years. Access to markets and finance remain their biggest hurdles. Pick n Pay’s Enterprise and Supplier Development (ESD) programme is one of several corporate efforts to close that gap, giving small suppliers not just shelf space, but structured support and recognition.

At its 2025 Supplier Conference, the retailer revealed that sales among its SMME partners had jumped 44% year on year – growth it now frames as central to its own turnaround strategy. 

Support – with strings attached

The ESD programme mixes mentoring, quarterly reviews, in-store promotions and “SME connect meetings” where challenges are flagged and solutions are thrashed out. Pick n Pay also runs market days, giving small brands the chance to meet customers face-to-face. As SMME executive Mark Bandi explains, there’s no one-size-fits-all model – support is tailored to each supplier.

Still, participation comes with strings. To stay in the programme, SMMEs must meet the same tough retail standards as established brands: packaging, barcoding, logistics and shelf-readiness. That discipline can drive quality, but it also leaves smaller players exposed if a contract falls through or market conditions shift.

Joburger and iWipe: a balancing act

Few stories capture both the promise and the fragility of the model like Joburger’s. Its founder, Zithande Emmanuel Mbala, walked away from accounting to launch iWipe, a “smart toilet paper” that doubles as a flushable wet wipe thanks to delayed evaporation technology. He says Pick n Pay’s seven-day payment terms allowed him to reinvest quickly and grow what began as a R50,000 venture into what he describes as a multimillion-rand company.

The road wasn’t smooth. Joburger weathered the pandemic, the 2021 KwaZulu-Natal unrest and Pick n Pay’s own restructuring. Mbala calls the experience a baptism by fire. His story shows how corporate backing can open doors, but it can’t shield entrepreneurs from South Africa’s volatile business climate.

Scaling pains across the board

Other SMMEs tell similar stories. Wonder Snacks, run by Shabeer Parker, started with a handful of popcorn machines and now supplies more than 500 stores across the Western Cape. The recognition of “best newcomer” has been welcome, but Parker points out that managing staff and scaling operations brought new pressures alongside growth.

HQ Foods, a family-owned company dating from the 1960s, used the programme to go national. That leap brought awards for both SMME of the Year and Innovation, but also “growing pains” – from investing in extra machinery to onboarding new staff. Rapid scaling, even with mentorship, has its costs.

Finance: the weakest link

Money remains the make-or-break factor. A 2025 Trade & Industrial Policy Strategies report found only about one-third of small businesses in South Africa have access to formal credit. Finfind’s MSME Access to Finance Report, also from 2025, showed that nearly 39% of micro and small enterprises sought loans under R250,000 last year, mostly to buy equipment or expand, but most struggled to secure approval.

Bandi confirmed that Pick n Pay is in talks with FNB to provide financing options for suppliers. If successful, that could plug one of the biggest gaps in the ecosystem. Without capital, mentorship and market access can only take businesses so far.

Partnerships with limits

The ESD programme shows the best and worst of corporate partnerships. For Pick n Pay, championing small businesses feeds directly into its brand and growth strategy. For entrepreneurs, it’s a rare route to scale – but one largely tied to the fortunes and requirements of a single client.

That dependency is risky. To survive long term, SMMEs need to look beyond one corporate network, diversifying their markets, securing independent finance and building resilience. Whether Pick n Pay’s programme ultimately nurtures independent enterprises or locks suppliers into its orbit depends on how it handles these next steps.

Cautious optimism

For now, the initiative has created genuine opportunities. For Joburger, Wonder Snacks and HQ Foods, the partnership has brought growth, visibility and jobs – along with new risks. The lesson seems clear: corporate mentorship can accelerate success, but for small businesses, lasting resilience will only come from spreading risk and standing on their own feet. DM