How trust and technology are transforming SME success

South Africa’s small business sector stands at a remarkable turning point. After decades of being overlooked by traditional financial systems, small and medium enterprises (SMEs) are experiencing a technological revolution that’s fundamentally transforming how they access capital and banking services, manage growth, and overcome operational challenges.

Trevor Gosling, CEO of Lula, has seen this transformation firsthand. After 10 years growing Lula from a start-up to an industry game-changer, his insights reveal not just where SMEs have been, but where they’re heading and why that journey matters for South Africa’s economic future.

The old barriers are breaking down

For too long, SMEs operated in a world where accessing finance meant navigating slow, paper-heavy processes that seemed designed for larger corporations rather than agile small businesses. “SMEs were historically underserved and often misunderstood,” Gosling says, reflecting on one of the biggest lessons he’s learnt from a decade leading Lula. “Traditional funding avenues were slow, paper-based, and frankly, frustrating.”

This disconnect between what SMEs needed and what was available created a significant gap in the market. Small businesses, the engines of job creation and community support, were often forced to either bypass growth opportunities or seek less optimal financial solutions. But technology has changed everything.

The digital advantage

The move towards digital-first financial services has been transformative. Through APIs, smarter data analysis, and streamlined digital platforms, what once took weeks can now happen in hours. This isn’t just about speed; it’s about accuracy and accessibility.

“Technology has democratised access to finance,” Gosling explains. “We can now make more accurate credit decisions using better data, which opens doors for businesses that were previously overlooked.”

This technological evolution extends beyond just funding. SMEs now have access to comprehensive digital banking solutions, real-time financial insights, and tools that help them manage cash flow more effectively – each crucial for sustainable growth.

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The resilience factor

Perhaps most importantly, recent challenges have revealed something profound about South Africa’s SME sector: its remarkable resilience. While global disruptions exposed vulnerabilities in many businesses, they also highlighted the grit and adaptability that characterise successful entrepreneurs.

“Businesses with ambition and determination can navigate challenges and foster growth when they have the right support,” Gosling notes. This resilience, combined with improved access to technology and finance, creates a powerful foundation for future success.

Rising expectations, rising standards

The transformation isn’t just technological; it’s cultural.  SME owners increasingly expect business-class service from their financial partners, a shift that Lula has helped drive. “We like to think we’ve had some influence in raising the bar,” reflects Trevor Gosling, “showing that SMEs deserve business-class treatment, not second-tier service. They want relationships based on understanding and trust, not just transactions.”

This shift in expectations is driving innovation across the entire ecosystem. Financial service providers are being challenged to deliver not just products but partnerships that genuinely understand the specific circumstances and challenges SMEs face.

The trust economy

In South Africa’s context, trust remains vital. “Building strong relationships and trust is essential,” Gosling emphasises. “Our market demands a deep understanding of the local context. This isn’t just about knowing the numbers; it’s about understanding seasonal business cycles, the unique challenges of operating in South Africa, and recognising that behind every SME is an entrepreneur with genuine aspirations for growth. At Lula, we’ve built our entire approach around this philosophy: technology enables efficiency, but trust and relationships drive lasting partnerships.

This means that successful financial partners for SMEs aren’t just technology platforms; they're organisations that understand the nuances of doing business in South Africa, from seasonal fluctuations to market dynamics that impact small businesses differently from large corporations. Lula has built its reputation on exactly this expertise, understanding that South African SMEs operate within complex seasonal, economic, and regional dynamics that require tailored financial solutions, not one-size-fits-all approaches.

Looking ahead: The AI opportunity

The next frontier for SME empowerment lies in artificial intelligence and advanced data analytics. These technologies promise even more targeted and efficient support, helping small businesses access the right financial tools at exactly the right moment.

But this technological progress will only succeed if it maintains the human element that SMEs value: understanding, flexibility, and genuine partnership – elements that technology should enhance, not replace.

“Lending will always be at our core. We will continue to use technology, including AI, to provide even better support and opportunities for our customers,” Gosling says.

SMEs aren’t just businesses seeking support; they are the backbone of South Africa’s economic future. They create jobs, support communities, and foster innovation in ways larger corporations often cannot. When SMEs thrive, the whole economy benefits.

The path forward

For SME owners navigating this changing landscape, the message is clear: the tools and support systems needed for growth are more accessible than ever. Success requires leveraging these opportunities while maintaining the resilience and vision that define entrepreneurial spirit.

The SME sector’s journey from being underserved to being empowered reflects broader shifts in South Africa’s business environment. As technology continues to evolve and expectations rise, one thing remains constant: the determination and potential of South Africa’s small business owners to build something extraordinary.

This article was sponsored by Lula and produced by Media24 Advertising and Content Marketing for News24.