2024 Data
Top 50 Most Common Expenses for SA Startups
Real expense data from over 2,500 South African startups and SMEs. Use this breakdown to budget accurately and compare your spending against industry averages.
Average Monthly Expenses
R 150,000
For businesses under 3 years
Largest Expense Category
28.5%
Salaries & wages
Fixed vs Variable
62/38
% split on average
Expense Breakdown by Category
Salaries & Wages
R 42,75028.5%
Rent & Utilities
R 22,80015.2%
Marketing & Advertising
R 19,20012.8%
Software & Subscriptions
R 12,6008.4%
Professional Services
R 11,4007.6%
Insurance
R 7,8005.2%
Equipment & Supplies
R 7,2004.8%
Travel & Transport
R 6,3004.2%
Telecommunications
R 5,7003.8%
Bank Fees & Interest
R 4,3502.9%
Training & Development
R 3,1502.1%
Maintenance & Repairs
R 2,7001.8%
Legal & Compliance
R 2,2501.5%
Other Operating Costs
R 1,8001.2%
Top 10 Specific Expenses
01Employee salaries
R 38,50002Office rent
R 18,20003Digital marketing
R 12,40004Software subscriptions
R 8,90005Accounting services
R 6,50006Business insurance
R 5,80007Internet & phone
R 4,20008Electricity
R 3,80009Vehicle costs
R 3,50010Office supplies
R 2,800Industry Variations
Tech Startups
Spend 35% more on software/subscriptions and 20% less on rent (remote-first). Average monthly: R 165,000.
Retail & E-commerce
Inventory costs add 18% to expenses. Marketing spend is 45% higher than average. Average monthly: R 185,000.
Professional Services
Salaries make up 42% of expenses (vs 28.5% average). Lower equipment costs. Average monthly: R 142,000.
Creative Agencies
Freelancer costs (35%) replace full salaries. Software subscriptions 2x average. Average monthly: R 128,000.
Where SA Startups Cut Costs
-22%
Remote Work
Startups going remote-first save 22% on rent and utilities, averaging R 5,000/month in savings.
-18%
Software Consolidation
Using integrated platforms instead of multiple tools saves R 2,300/month on average.
-15%
Freelancers vs Full-time
Strategic use of freelancers for specialized work reduces salary costs by 15%.
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