Unregistered SMEs cannot access formal financing due to lack of business documentation and credit history

56% of South Africa's micro and small enterprises operate unregistered, making them invisible to banks and formal lenders who require documented business records, tax compliance, and credit history to approve loans. These businesses are trapped in the informal economy, unable to access the $21.5 billion in available funding because they lack the formal credentials lenders demand, forcing them to rely on expensive informal lending or forgo growth capital entirely.