Small and medium enterprises (SMEs) in South Africa need to put robust processes and systems in place if they are to protect themselves against rising incidences of identity theft and other forms of fraud.
That's according to Donovan Marais, channel manager of Sage Pay, who notes that SMEs are becoming a target for identity thieves.
Large retailers, telecom operators and banks put in place tougher measures to safeguard themselves, so must SMEs, says Marais. "They are at growing risk because fraudsters see them as soft targets," he adds.
The challenge for SMEs is they often do not have in-house IT resources to investigate and drive new technology opportunities - they lack the capital to build substantial in-house IT infrastructures, says Sage.
A recent SME Survey 2015 in SA, done by Standard Bank and local research firm World Wide Worx, discovered crime, finance, and competition are some of the most pressing issues affecting SMEs.
According to Ethel Nyembe, head of small enterprise at Standard Bank, while big companies have the infrastructure, client bases and capital to cope with the challenges highlighted in the survey, many small businesses, which have the potential to be active players in the South African economy, do not have the financial muscle and resources to overcome these challenges.
The National Development Plan envisages that 90% of the 11 million jobs targeted by 2030 will come from the small business sector. Nyembe believes big organisations are no longer the primary focus for growth and job creation.
The biggest emerging economies today are driven by SMEs as key drivers for economic growth, innovation and sustainable employment, she adds.
Nyembe believes that if South Africa is to join their ranks, SMEs need the necessary backing, namely financial assistance, access to markets, corporate and government support, business and skills development, and mentorship.
Corporate South Africa has a major role to play in driving the growth of small businesses - and every reason to help nurture a healthy SME sector, says Ivan Epstein, CEO at Sage Africa, Australia, Middle East and Asia and chairman of the Sage Foundation.
"SMEs are the vital drivers of the economy. The right kind of support from government and business could spark a significant change in the trajectory of the local economy as a whole."
Large businesses have a huge amount to gain through a more aggressive focus on the development of the SME segment, says Epstein.
He believes a stronger SME sector gives big business access to more customers, suppliers, dealers and outsourcing long-term partners.
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