This is according to chief technology officer and co-founder of Kandua.com, Arjun Khoosal, who tells the Business Hour that their recent research shows that access to funding and new customers remain these small businesses’ biggest concern.

With respect to access to funding, most startups do not meet the minimum requirements for funding from traditional banking institutions, owing to the absence of an extensive business track record.

Also read: Fintech lenders continue to fill in the funding gap in SA

Previously the Chief Executive Officer and co-founder of Fundrr, Idan Jaan, told the Business Hour the funding gap for start-ups in South Africa is born from the absence of a venture capitalist ecosystem.

This ecosystem is very present and robust in more developed countries, which is why the start-up culture is different in South Africa.

Listen to Khoosal’s insights below.