Nomfundo Kuhlekonke Minenhle Nxumalo

Type of the article: Research Article

Abstract
Small and medium-sized enterprises (SMEs) are a key driver of employment and economic growth in South Africa, yet their increasing reliance on digital technologies has significantly increased exposure to cyber threats that can undermine customer trust and business sustainability. However, empirical evidence on how cybersecurity investment influences customer trust among SMEs in South Africa remains limited. This study aims to examine the relationship between cybersecurity investment and customer trust among SMEs operating in the retail, hospitality, e-commerce, professional services, and small-scale manufacturing sectors in KwaZulu-Natal, South Africa. These sectors were selected because of their high dependence on digital transactions and customer data processing. A quantitative research design was adopted using primary data collected through a structured questionnaire administered to SME owners and senior managers between 2024 and 2025. A total of 375 valid responses were analyzed using Pearson’s correlation and linear regression techniques. The results reveal a statistically significant positive relationship between cybersecurity investment and customer trust (r = 0.312, p < 0.001). Regression analysis further indicates that cybersecurity investment explains 9.7% of the variance in customer trust (R2 = 0.097, p < 0.05). SMEs that implemented secure digital payment systems, data protection measures, employee cyber-awareness training, and compliance with the Protection of Personal Information Act (POPIA) reported higher levels of customer confidence and perceived business credibility. These findings highlight that strategic investment in cybersecurity contributes to strengthening customer trust and improving the competitiveness and resilience of digitally enabled SMEs in South Africa.