Colin Timmis | Regional Director | EMEA | Xero | mail me |
I have spent my career watching South African Small and Medium Enterprise (SME) owners achieve extraordinary results with limited resources. Their resilience is well known. However, this does not remove the difficult path that entrepreneurship often entails.
According to our recent Emotional Tax Return report, 95% of South African SME owners make personal sacrifices to sustain their businesses. In addition, they report that the current financial year feels more stressful than previous years.
Strengthening financial control in times of global turbulence
Although 60% say the stress is worth it, the trade-offs remain significant. Many sacrifice sleep, with 48% reporting major loss. Others give up hobbies (37%), holidays (30%) and exercise, as 64% have reduced or stopped it. On average, they spend 11 hours each week feeling stressed, concerned or worried about their business. This means they spend more than a quarter of their work week managing anxiety.
At the same time, global turbulence continues to intensify pressure. It disrupts supply chains and increases input costs.
For South African small businesses, these pressures extend beyond headlines. They appear as fluctuating logistics expenses and persistent delivery delays. Therefore, during periods of global turbulence, the focus must shift inward. Business owners must use internal levers to protect margins and prepare for disruptions.
Strengthen your cash flow defences
In uncertain conditions, cash flow visibility becomes essential for survival. Update projections weekly instead of monthly. In addition, build a liquidity buffer that covers operating expenses where possible.
Cloud-based accounting tools help identify risks early. As a result, businesses can respond quickly. A business that understands its cash position in real time can act decisively. It can also reduce stress and improve stability.
Create financial plans for multiple scenarios
Uncertainty increases when businesses rely on single-track forecasts. Therefore, work with your accountant or bookkeeper to build multiple scenarios. These should include best-case, mid-case and worst-case projections for revenue, expenses and inventory. Next, stress-test your margins against disruptions.
For example, consider fuel price increases or delayed payments. Scenario planning does not remove uncertainty. However, it reduces unexpected shocks, which often drive stress during periods of global turbulence.
Build operational and supply-chain resilience
Operational risks continue to rise. Shipping delays are already affecting businesses, and suppliers face increasing pressure. Therefore, diversify your supplier base. At the same time, increase inventory buffers for critical items.
In addition, audit your cost base early and negotiate where possible. Operational efficiency remains one of the few controllable levers. Consequently, businesses should prioritise it to navigate global turbulence more effectively.
The compliance opportunity
Many SME owners overlook tax deductions and leave money unclaimed. They also face compliance gaps.
Modern cloud accounting systems help address these issues. They maintain SARS-compliant records and reduce filing complexity. In addition, they unlock access to government funding through incentives and grants. Financial discipline does more than support survival. It also enables growth by revealing opportunities that businesses may not have recognised.
Navigating the ripple effects
South Africa entered 2026 with fragile but improving business confidence. However, global turbulence is testing this recovery. SME founders must now manage multiple pressures simultaneously. These include fluctuating fuel prices and rising inflation. At the same time, they must manage the emotional tax of running a business. Without balance, this can lead to burnout.
Entrepreneurs increasingly carry multiple responsibilities. They manage external shocks while keeping businesses operational. They also support employees and sustain their families. Although many of these factors remain outside their control, some elements can be managed proactively. Business owners should prioritise financial discipline, operational resilience and personal wellbeing. These actions help protect both the business and the individual behind it.
The question is no longer whether SME owners are resilient enough to survive. They have already proven this repeatedly. Instead, the focus must shift. Stakeholders must move beyond expecting entrepreneurs to endure hardship. This year, the priority should be different. We must create an environment where SMEs have the systems and support required to survive and thrive. At the same time, we must ensure that they do not lose themselves while building the economy.
