Small and Medium Enterprises (SMEs) in South Africa face significant cybersecurity challenges due to poor password hygiene practices. Employees and managers frequently experience password fatigue, leading to dangerous security shortcuts such as password reuse, weak credential creation, and physical recording of passwords. While comprehensive cybersecurity frameworks exist for large enterprises, SMEs lack practical, tailored solutions that account for their limited resources and technical expertise. This study conducts a systematic literature review (SLR) to analyze existing research on password security challenges in SMEs, with particular focus on the South African context. The review identifies key vulnerabilities and synthesizes evidence-based recommendations into actionable password hygiene guidelines specifically designed for SME environments. The proposed guidelines emphasize usability alongside security, offering realistic strategies to improve authentication practices without overwhelming staff. Findings highlight the critical need for simplified policies, appropriate technological tools, and continuous security awareness training in resource-constrained SME settings.