Over the past decade, founders have had to navigate a business environment defined by constant change. Economic growth has been uneven, interest rates have moved sharply, the pandemic disrupted entire sectors overnight, and infrastructure constraints such as load-shedding have altered how businesses trade day to day. For entrepreneurs, the lesson has been that resilience is not optional.
When we started Merchant Capital more than 13 years ago, fintech was framed as a disruption. The emphasis was on agility, scale, speed, and challenging incumbents. Supporting SMEs in a market like this requires more than access to capital. When the environment is stable, underwriting models feel reliable. When conditions deteriorate quickly, as they did in 2020, you find out how resilient your assumptions really are.
The early months of the COVID-19 lockdown were a clear example. Demand for funding surged as businesses sought liquidity while revenue visibility disappeared almost overnight. At that time, we had to decide whether to lean into volume or be more cautious. We chose the latter. We re-ran several scenarios and tightened our parameters where necessary. For us, it was about prioritising liquidity and runway for Merchant Capital while ensuring our clients were supported at a time when many lenders were stepping back.
That period reinforced an important lesson. Growth during uncertainty must be deliberate. It also means recognising opportunity when circumstances change. During the pandemic, our team explored launching funding solutions for medical practitioners. Pricing structures were misaligned with the market, and distribution was limited. Rather than forcing the model, we reassessed the approach and ultimately partnered with Discovery, which significantly improved customer acquisition costs and distribution capability. What began as a difficult initiative became a successful new vertical for the business.
Over the past decade, our business has grown while continuously adapting to the needs of South African SMEs. We have refined underwriting models, strengthened liquidity buffers, and invested heavily in digital and data capabilities to better understand how businesses trade in a changing environment. The needs of SMEs in 2013 are not identical to those in 2026, and funding solutions must evolve accordingly.
There is often a perception that fintech innovation requires greater complexity. In my experience, the opposite is true. In volatile markets, simplicity and clarity becomes a competitive advantage. Businesses must understand the risks they are willing to take, protect liquidity, and retain the flexibility to adjust when markets move unexpectedly.
Leadership during disruption also requires consistency. Teams take their cue from how leaders respond under pressure. When decision-making becomes reactive, organisations lose focus. When leaders stay calm, organisations make better decisions.
Looking back, the past decade does not feel like a sequence of isolated shocks. It has been a prolonged test of adaptability. South African entrepreneurs, in particular, have demonstrated remarkable resilience through this period, often continuing to build and grow businesses despite difficult conditions.
For founders, the key lesson is to avoid making the same mistake twice. Stay fluid, stay curious, and be prepared to adjust when circumstances change. In an environment where growth will rarely be perfectly linear, adaptability becomes one of the most valuable strategic advantages a business can have.
Building a fintech in South Africa has required patience, disciplined capital management, and continuous evolution. Resilience isn’t built in a crisis. It’s built in the decisions made long before one arrives.
That mindset has shaped Merchant Capital’s journey over the past decade, and it continues to guide how we build for the years ahead.
Written by Dov Girnun, Founder and CEO of Merchant Capital