Tag: cash flow

For years, we’ve been told that entrepreneurs are key to South Africa’s economic growth and job creation. If we had any hope of escaping quarter after quarter of sluggish growth (or recession), we were told, we needed to support and invest in entrepreneurs.

The JSE has identified focus areas for listed companies to consider when raising capital to weather the COVID-19 crisis, including the amount of information they need to disclose. Over the last few months, many issuers have approached investors to raise capital to weather the COVID-19 storm or are in the process of doing so.

Those fortunate enough to have some excess cash on hand are in a unique position within the global context as workers across the world continue to grapple with the economic fallout of COVID-19. While there may be the temptation to utilise excess cash flow on shorter-term expenses, recent events have emphasised the importance of positioning your finances for an uncertain future.

The impact of COVID-19 and the lockdown has severely squeezed business cash flows. Surviving the shock is challenging the resilience of enterprises and executives alike. How management adapts will test their agility and resourcefulness. If not enough is done, the very survival of the business will be at stake.

Tourism is a significant sector. It directly and indirectly supports 8,6% of South Africa’s GDP. Its economic activity encompasses all non-commuter passenger travel, car hire, a wide range of accommodation types, a vast array of activities and attractions, conference centres, retail and restaurants and services such as tour operators, travel agents, conference and event organisers and the like.

As the economy opens up, following the slow phasing out of the nationwide COVID-19 lockdown, many businesses are returning to work. For small to medium-sized enterprises (SMEs), who have lost out on eight weeks of trade, the process of reopening their doors and scaling up production is going to be difficult.

With the lockdown period having significant ramifications on personal finances, many consumers are asking about available options to assist in better managing their money. One option is debt consolidation, which in the right circumstances can improve current cash flows and save costs.

It is no secret that entrepreneurship and business creation is the lifeblood of economic growth and innovation. Research out of the United States by the Kauffman Foundation, for example, underscored that entrepreneurship is integral to job creation and economic progress.

The global outbreak of Coronavirus and the subsequent national lockdown announced by President Ramaphosa in March 2020 have undoubtedly impacted many companies.

The COVID-19 pandemic has changed our world with devastating speed and there is no doubt that small businesses will be the hardest hit. Although we are hoping for everything to get back to normal and finally get to put all the anxiety, fear, and tragedy of the COVID-19 pandemic behind us, no one knows how severe the economy will get impacted or how long the recovery process will take.