New SMME size limits explained: what Vaal businesses need to know
South Africa's micro, small and medium business size limits changed on 27 May 2026, when new turnover ceilings replaced the 2019 table. Here is the new table, what micro, small and medium mean, what the table does not decide, and what it means for Vaal SMMEs.
By Staff Reporter · Published
As at 3 November 2026.
- The size rules changed on 27 May 2026. New turnover limits replaced the 2019 table. In most sectors, many businesses that were “small” may now count as “micro”, and many that were “medium” may now count as “small”. Construction goes the other way.1,2,3
- Growing firms should check again. If you apply for anything that asks for your size, use the 2026 table.3,4
- The table is not the only size test. Other systems, such as B-BBEE, use their own size tests.
Which law sets the limits?
Most people call it the Small Business Act. Its full name is the National Small Enterprise Act, 1996 (Act 102 of 1996). It was passed as the National Small Business Act, and a 2004 amendment renamed it.5,6 Some government notices still use the old name, including the May 2026 size regulations.3
One of the Act’s main jobs is to define what a small enterprise is. That covers micro, small and medium businesses, including co-operatives.7
The 2024 amending Act (Act 21 of 2024) moved the size test out of the Act and into regulations, which the minister can update “to account for inflation and macro-economic shifts”.7,8 Section 8 of that Act, which repealed the old size table, took effect on 27 May 2026 (Proclamation 314 of 2026, Gazette 54750).1,9
Who counts as a small business now?
Since 27 May 2026, size is set by the minister’s Final Regulations Setting the Criteria Determining the Classification of Micro, Small and Medium Enterprises. They were published in Gazette 54750 on 27 May 2026.2,3 The notice number is printed blank in the Gazette (“Notice __ of 2025”), and we could not find an official number. Nation Watch SA has asked the Department of Small Business Development for the notice number and will update this story once it responds. The draft was put out for comment on 15 September 2025 (Gazette 53348).10
Two tests apply: the number of full-time-equivalent paid employees and total annual turnover. The employee bands are the same in every sector: micro 0–10, small 11–50, medium 51–250.3 The turnover ceilings depend on your sector. The 2019 figures are shown in brackets so you can compare.3,4
| Sector | Micro (turnover up to) | Small (up to) | Medium (up to) |
|---|---|---|---|
| Agriculture | R15m (R7m) | R45m (R17m) | R100m (R35m) |
| Mining and quarrying | R25m (R15m) | R70m (R50m) | R400m (R210m) |
| Manufacturing | R15m (R10m) | R70m (R50m) | R350m (R170m) |
| Electricity, gas and water | R15m (R10m) | R70m (R60m) | R350m (R180m) |
| Construction | R10m (R10m) | R40m (R75m) | R150m (R170m) |
| Retail, trade and repair services* | R15m (R7.5m) | R80m (R25m) | R300m (R80m) |
| Wholesale | R30m (R20m) | R150m (R80m) | R600m (R220m) |
| Catering and accommodation* | R6m (R5m) | R20m (R15m) | R60m (R40m) |
| Transport, storage and communications | R15m (R7.5m) | R80m (R45m) | R300m (R140m) |
| Financial intermediation* | R10m (R7.5m) | R45m (R35m) | R160m (R85m) |
| Community, social and personal services | R10m (R5m) | R35m (R22m) | R150m (R70m) |
*Three sectors were renamed in 2026. “Retail, motor trade and repair services” became “Retail, Trade and Repair services”. “Catering, Accommodation and other Trade” became “Catering and Accommodation”. “Finance and Business Services” became “Financial Intermediation”.3,4 The 2026 notice gives no mapping between old and new sectors, so for these three rows the bracketed 2019 figures compare similar, not identical, sectors.
Look at construction. In most sectors the limits went up. In construction, the small and medium ceilings went down: small fell from R75m to R40m, and medium from R170m to R150m.3,4 Our separate explainer on the construction cut looks at what this means for Vaal builders.
The regulations also carry a warning for regulated industries such as fuel. About a third of their turnover can be taxes and levies, and margins are low, so the thresholds should be applied to them with care.3
What the table does not decide
This is the definition used by the small business law and the programmes linked to it. Other systems, such as B-BBEE, use their own size tests.
What we know
- New micro/small/medium thresholds have applied since 27 May 2026, and the old size table has been repealed.1,2,3
What we don’t know
- The official notice number of the May 2026 regulations. The copy we read leaves it blank (“Notice __ of 2025”).3
- Most Vaal spazas, salons, car washes, tshisanyamas and backyard workshops are likely to be micro. Most have 10 or fewer staff and turnover below the new micro ceilings. That was also likely under the 2019 table.3,4
- Growing firms should check again. A retailer turning over R12m used to be small and is now micro. A wholesaler at R100m used to be medium and is now small.3,4 If you apply for anything that asks for your size, use the 2026 table.
- Builders, take note. The construction ceilings for small and medium went down, not up.3
What to do next
- Work out your size. Find your sector in the table above. Count your full-time-equivalent paid staff and check your last annual turnover.3
Read more
- Series guide: Vaal small business guide: the Small Business Act and Spaza Shop Support Fund explained
- Construction size limits cut: what Vaal builders need to know
- Sedfa explained
- Small Enterprise Ombud explained
- How the Small Business Act changed, 1996 to 2026
- Spaza Shop Support Fund: what you can get and who qualifies
- How to apply for the Spaza Shop Support Fund
- Emfuleni business licence checklist explained
- Spaza fund, TREP, TEPF or Township Enterprise Fund?
- Section 8 of National Small Enterprise Amendment Act in effect, GoLegal / Sabinet (29 May 2026)
- National Small Business Act: micro, small, medium enterprise classification criteria replaced, SA Legal Academy (27 May 2026)
- Final regulations setting the criteria determining the classification of micro, small and medium enterprises, Government Gazette 54750, pp 5–6 (27 May 2026; signed 11 April 2026; scan of the Gazette hosted by a law firm)
- Revised Schedule 1 of the National Definition of Small Enterprise (GN 399), Government Gazette 42304, gov.za (15 March 2019)
- National Small Enterprise Act 102 of 1996 (consolidated text and amendment history), LawLibrary
- National Small Business Amendment Act 29 of 2004, gov.za
- National Small Enterprise Amendment Act 21 of 2024 (full text), Government Gazette 50965, gov.za
- National Small Enterprise Amendment Act: Changes afoot?, Cliffe Dekker Hofmeyr (16 Oct 2024)
- National Small Enterprise Amendment Act 21 of 2024 (commencement history, including Proclamation 190 of 2024 and Proclamation 314 of 2026), LawLibrary
- Minister Stella Ndabeni publishes draft regulations on thresholds for classification of small enterprises, gov.za (15 Sept 2025; draft in Gazette 53348)
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