Tag: working capital

Business owners could not have known how fundamentally their lives would change only a few months ago. We now know the pandemic has wreaked havoc on cash flows, supply chains, debt repayments and the general financial standing of thousands of companies in South Africa.

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.

During tough economic times, it arguably makes sense for businesses to simply look to buckle down and ride out the storm. However, while ‘waiting it out’ may appear to be the best practice in such times, there may be a missed opportunity for business growth in a tough economy.

We have unveiled the State of Entrepreneurship in South Africa after surveying more than 1,000 entrepreneurs across the country. 2019 marks our fifth year of engagement with local entrepreneurs, with the latest findings showing that entrepreneurs are optimistic and resourceful even as the sector is enduring one of the most difficult economic periods.

Every successful business owner will tell you that ‘cash flow is king’ and effective working capital management is essential for any successful business to survive, as it provides a business with the cash flow to fund its day-to-day operations. Working Capital can be funded by the business itself or by external funders.