Zaio and Wonder Snacks take top honours at News24 X Lula SME Awards

South Africa's best small businesses of 2026 shared R300,000 in prize money at the second annual News24 X Lula SME Awards, held at Nasdak in Cape Town on Thursday, 29 October. The awards recognise SMEs that show growth, innovation, impact and resilience across five categories.

Zaio Institute of Technology won two of them: Small Business of the Year and Service Business of the Year. Wonder Snacks took Product Business of the Year. Ambesha Africa won Women-Owned Business of the Year. Bulelani Balabala, founder of the Township Entrepreneurs Alliance (TEA), was named Business Networker of the Year.

The announcement lands just before Entrepreneurship Month in November. That builds to Global Entrepreneurship Week from 16 to 22 November, now in its 19th year. The week draws more than 10 million participants across 200 countries and territories, connecting entrepreneurs with knowledge, networks and opportunities.

What can new founders learn from the winners?

The winners' stories carry five practical lessons, according to the awards narrative.

Prove demand before spending on capacity. Wonder Snacks started in 2017 with small popcorn poppers and manual flavouring. It now runs a fully automated popcorn plant in Parow, Cape Town. The family-owned firm is a Level 1 B-BBEE company committed to empowering small businesses across its value chain.

Mubeen Ebrahim, co-founder, director and general manager of Wonder Snacks, said: "As an SME, one of the biggest challenges is how you respond to adversity – when a retailer tells you no, but you still have bills and staff to pay. You have to pick yourself up, go back and try again."

He added: "The FMCG space is highly competitive, but if you believe in your product and what you are trying to achieve, you need the determination to keep going. This award is also recognition of the hard work of our team and the opportunities we are building for the people and families behind the business."

Build around a problem you understand. Zaio Institute of Technology began as a University of Cape Town student start-up. It now offers accredited programmes in software development, artificial intelligence, data science and cybersecurity, using hands-on, project-based learning to help graduates secure digital-economy work.

Akhil Boddu, co-founder and CEO of Zaio, said: "I think one of the biggest things this recognition can unlock for us is new introductions and connections. We want to grow our employer-funded training offering and work with more companies that are willing to invest in talent and skills development. If this award can open those doors and put Zaio in front of more organisations and partners, that would be a significant next step for us."

Treat a network as a sales pipeline. Balabala founded TEA in 2015 with a database of around 10,000 township entrepreneurs in areas including Thembisa, Alexandra, Mamelodi and Vosloorus. The alliance now reports directly impacting more than 80,000 township and rural companies. It converts relationships into practical access to funding, markets, knowledge, equipment and strategic partners.

Balabala said: "Winning this award is validation of the work we are doing to drive economic growth at township and grassroots level. To receive this recognition from Lula and News24 is a major milestone for us because it signals to the market that we are trusted, reliable and worth working with. It gives us even more momentum to go back into the market and deepen our impact."

Earn from more than one service. Ambesha Africa makes custom outdoor patio furniture from locally sourced materials and repairs existing pieces to extend their lifespan. The repair work also earned founder Trudy Mkansi third place for Small Business of the Year. A repair line brings in income between large orders and gives customers a reason to return.

Mkansi said: "I come from a rural village in Bushbuckridge, and if someone at home who wants to start a business can look at my journey, relate to it and feel encouraged to turn their own idea into something real, that would make this recognition even more meaningful. After ten years of building the business, being recognised in this way is incredibly special."

Plan your finances. "Know your numbers, hire when the work is there to pay for it, stay close to your customers, and plan for the months when cash is tight," said Trevor Gosling, co-founder and CEO of Lula. He added that funding is essential when a growing business draws working capital to buy stock or deliver a new contract, because then it acts from strength.

Lula supports SMEs with a Cash Flow Facility that works like a line of credit without monthly account or admin fees, letting businesses draw funds as opportunities arise.

What does this mean for the SME sector?

Gosling sees a larger opening ahead. "As technology and AI create new ways for businesses to reach customers and operate, there is real potential for more South African SMEs to grow into significant employers and industry leaders," he said.

But he conditioned that on collective effort: finding funders willing to back potential and building partnerships focused on creating opportunities. "None of us can do it alone. But together, we can make it easier for more businesses to succeed."