One of the most challenging micro-environmental variables that small and medium enterprises SMEs are faced with is marketing, and more particularly branding. The research study investigates the importance of branding to South African SMEs and determines whether SMEs comprehend the significance of branding in the business’ success. The objective of this paper is to determine how brand orientated SMEs are, their perceived brand distinctiveness and the barriers they are faced with. A questionnaire was conducted and judgement sampling was used to gather the responses of 43 SMEs. The research identified that SMEs are aware of the importance of branding; however some SMEs do not have to necessary resources available for it. The challenge now is to improve the skills and capabilities of SMEs to ensure effective branding, which ultimately influences their success, as they play a vital role in the South African economy