New research from the BeyondCOVID Business Survey paints a sad picture one year after the Covid-19 pandemic hit the country, with 26% of small and medium businesses (SMMEs) reporting being forced to close down for now and 7% permanently.
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Specialist management consultancy Redflank conducted the survey between July 2020 and March 2021, surveying nearly 4 500 companies of which more than half were micro to small businesses. Other worrying statistics from the survey are:
Accommodation and food, the arts, entertainment and recreation, water and waste management, construction and education suffered the most negative impact from the pandemic. The corporate agricultural and construction sectors are improving, but SMMEs in these sectors are still struggling.
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The problem is that SMMEs play a crucial role in job creation and growth and have been identified as productive drivers of inclusive economic growth and development. “The small business sector is a critical part of the national economy. Government’s National Development Plan 2030 views SMMEs as a major source of employment and stimulator of growth, reducing unemployment against a backdrop of a formal sector that continues to shed jobs,” says Fay Mukaddam, chairperson of BeyondCOVID.
BeyondCOVID plans to use its business networks within the private sector and government to leverage funding and investments, commercial and otherwise to help SMMEs and organise them into SMME Collectives supported by BeyondCOVID’s networks, services and technology to reduce the risk and help them become more resilient.
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