Tag: Small and Medium Enterprise (SME)

This may be the better of the two evils. It was always a toss between two very difficult decisions: either a ‘partial lockdown’ or a ‘complete lockdown’. It turned out to be a three-week lockdown. It cannot be expected of government to make perfect decisions.

Despite the country falling into recession, coupled with a dim economic outlook, it is not all doom and gloom for small businesses. For many small businesses the outlook for the year ahead seems bleak due to a lower forecast for economic growth globally, challenging local trading conditions owing to inconsistent power supply, currency volatility and rising operating costs, amongst several factors. However, opportunities still exist for SMEs who are agile. 

The impact of digitisation on small and medium enterprises is significant. Savvy SMEs can turn this to a huge advantage as they can do things quickly and in a more agile manner than big businesses. However, challenges abound when trying to protect innovative products and processes.

A study conducted by research firm In On Africa revealed that 86% of Small Medium Enterprise (SME) owners use their smartphones for business purposes. While 60% of the SME owners also feel that limitations posed by lack of a reliable internet connection, reliable services or financial solutions pose a threat to the success of their business.

Stats SA recently announced that South Africa’s unemployment rate increased by 0,1% to 29,1% of the population in the third quarter of this year. While this figure is at an all-time high since 2008, it is unrealistic to expect our government to reduce these statistics on their own.

SMMEs play a fundamental role in the growth of a country’s economy. For South Africa, small and medium enterprises contribute significantly to the overall GDP and have continued to be in the front-lines of combating one of the biggest socio-economic challenges that affects the country; namely unemployment.

The confidence and hope at the recent SA Investment Conference, spurred on by the Springboks, was tangible. It’s as if that same momentum, and hope in a better future, inspired the call to action by the President. While forever there will be detractors, what’s encouraging is the level of commitment by investors, both local and international, to invest in South Africa.

With the Digital Revolution in full swing, data is to business what oxygen is to mankind. It is a crucial resource – one that enables companies, especially smaller ventures, to make better business decisions, grow their customer base, keep their competitive edge and secure funding.

With South Africa’s GDP growth forecast to be just 0.7% for 2019, most businesses are taking severe strain. To prevail in this difficult economic climate, each business will need to ensure that it is running an efficient operation. Here are some ways that small and medium businesses (SMBs) can reposition themselves to succeed in a downturn economy.

In July, City Power was hit by ransomware resulting in customers unable to purchase prepaid electricity or access its website. This has again put the spotlight on cyber security and highlights how few organisations, irrespective of their size, are safe from an attack.