By Rishai Neerachand, Executive Head of Business Insurance at Miway

South Africa’s entrepreneurial sector is expanding rapidly, with new business registrations rising by 60% over the past five years^[i]. From online retail start-ups to tech-enabled service providers, a new generation of founders is reshaping the country’s commercial environment.

In the early stages of building a business, growth, branding and customer acquisition often take priority, but Rishai Neerachand, Executive Head of Business Insurance at Miway, warns that risk management is frequently overlooked. “Starting a business is exciting, but it is not without risks,” he says. “The earlier you put the right safety in place, the better positioned you are to absorb unexpected shocks without derailing your progress.”

Small and medium enterprises (SMEs) face a wide range of risks, from property damage and theft to liability claims and business interruption. The nature of these risks has evolved alongside rapid technological development. Globally, insurers are using tools such as drones to assess damage more efficiently and to provide specialised cover for emerging, platform-based businesses. Telematics technology is increasingly being used to monitor company fleets in real time, improving safety and enabling faster claims processing.^[ii]

“These innovations mean insurers can price risk more accurately and respond more quickly when something goes wrong,” Neerachand explains. “Access to better data ultimately benefits small businesses, because it allows for more tailored cover and improved service.”

Different business models also bring different exposures. New-generation e-commerce businesses, for example, face specific risks linked to goods in transit. Goods can be damaged by vandalism, theft or severe weather while enroute to customers. Online retailers with warehousing facilities must also consider risks such as fire, flooding and burglary, as well as the financial impact of interrupted operations.

“Entrepreneurs often assume that because their business operates online, their risk is lower,” says Neerachand. “In reality, digital businesses still rely on physical assets, logistics networks and customer trust. A single incident affecting stock or delivery timelines can damage both revenue and reputation.”

For service-based businesses, professional indemnity and public liability cover may be equally important. An error in advice, a contractual dispute or an accident involving a third party can quickly escalate into costly legal action.

Neerachand advises young entrepreneurs to start with a clear assessment of their most material risks. “It’s important to understand what would hurt your business the most if an unforeseen event happens tomorrow. Once you identify those core exposures, you can structure cover around them.”

Beyond traditional insurance cover, support services are also becoming increasingly valuable to small businesses. All Miway business clients have the option to access MiBusinessAssist, an offering designed to help reduce unnecessary operational costs. Services include legal advice, administrative assistance, an IT help desk, tender notifications, licence disc and traffic fine support, and digital marketing tools.

“Insurance should not only respond when something goes wrong,” says Neerachand. “It should also support businesses in operating more efficiently and confidently on a day-to-day basis. With the right cover and the right advice, young entrepreneurs can focus on growing their ventures – and our economy – knowing they have a safety net in place,” he concludes.