New research reveals that South Africa’s social grants are doing more than alleviating poverty—they are actively fueling small-scale entrepreneurship. Beneficiaries are strategically using these cash transfers as seed capital to launch a diverse range of micro-businesses, from street vending to photography and poultry farming.
These individuals demonstrate immense agency, often pooling funds or borrowing small amounts to start ventures that provide a more dignified livelihood. Their stories powerfully counter the myth that grants foster dependency, instead showing how they can be a springboard for economic activity.
As South Africa debates expanding its social protection system, this evidence highlights the potential of supporting grant recipients’ existing entrepreneurial efforts to drive more inclusive economic growth from the ground up.
