There’s no doubt that this is a challenging and uncertain time for South Africa and the rest of the world. While President Ramaphosa’s announcement of the gradual easing of the lockdown may have provided some light at the end of the tunnel, the next few weeks will be far from normal.
Even under regular circumstances, life as a small business can be tough. Take cash flow disruption, for example – small gaps can spiral into additional fees, late payments, and other damaging consequences. Recent research among SMEs in South Africa found that cash flow and late payments were the primary concerns, with 91% having experienced late payments in 2019.
The president’s R500 billion stimulus package, the Department of Small Business Development’s coronavirus debt relief fund, and banks introducing new debt relief measures will no doubt help some SMEs breathe a small sigh of relief. But the foreseeable future is not