Tag: profit margin

Black Friday has come and gone, and with the current state of our economy we’ve seen a significant change in consumer behaviour. This years Black Friday has some clearly defined changes such as how consumers chose to make their purchases, the platforms they used to make them as well as how much they chose to spend.

The South African Rand (ZAR) is experiencing another tumultuous period. Following a robust rally last Tuesday, the Rand’s fortunes have taken a hit, with its earlier gains yielding to a more cautious market sentiment. Factors contributing to this turbulence include geo-political concerns in the Middle East, particularly Israel’s preparation for a potential offensive in Gaza, which has raised fears of energy supply disruptions and global economic repercussions.

Amid the devastation caused by the COVID-19 pandemic on businesses, and in particular small businesses, bankruptcies have soared. If you were to do an analysis of why many small businesses go under, you are likely to find that a significant number end in financial ruin by making the same or similar mistakes.

Even the smartest minds around boardroom tables in many corporate companies could not have predicted that businesses around the world would be facing a crisis of this nature and this magnitude. COVID-19 has thrown a wrench into all business predictions and all 2020 plans. Anything that any business wanted to do this year, or likely even had planned for 2021, will have to be changed, or require a completely new approach.

South Africa’s current economic environment poses a real risk for small and medium enterprise (SME) owners given its stagnant growth, and it is increasingly more difficult for local businesses to sustain themselves, let alone increase profit margins.