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A new normal for small businesses in SA

The landscape of small businesses in SA has changed forever as a result of COVID-19.

Johannesburg, 13 May 2020
Johan Fourie, Account Delivery Manager at NuPay
Johan Fourie, Account Delivery Manager at NuPay

When the president announced the three-week nationwide lockdown on 24 March, with only essential services being allowed to work, small business owners and economists alike feared the worst. Since then the lockdown was extended by another two weeks and government has indicated that a phased approach will be implemented in bringing the country and economy out of lockdown.

According to the SBI (Small Business Institute), 263 224 small, micro and medium enterprises employ 3.9 million people. This makes the impact of the COVID-19 pandemic and the subsequent lockdown that much more significant. The vast majority of small business owners are now in a situation where they are unable to pay their rent, utilities and, most importantly, their employees. The knock-on effect of this is that employers are now faced with the possibility of having to retrench employees (if they have not already been forced to do so). The future survival of small businesses will depend on their ability to adjust to the changing business environment and identifying viable business opportunities (even if they fall outside of their current business scope).

Never has the need been greater for entrepreneurs to step up and think outside of the box. The economic landscape has completely changed, and innovative small business owners are the ones who will weather this storm. Douglas Kruger just released a new book: “Virus-proof your small business, 50 ways to survive the COVID-19 crisis”, where he has asked experts from around the world to shares their thoughts on how a small business can survive during this pandemic and provides small business owners with practical advice on how to adjust to this “new normal”.

Various funds and support structures have been established to assist small business owners, but the general opinion in the media, and from numerous business analysts, is that many small businesses will not survive. To counteract the impact as much as possible, the SBI has established a page on its Web site (https://www.smallbusinessinstitute.co.za/covid-19-for-smes/) to assist small businesses in getting access to the various avenues of support.

NuPay would like to encourage small business owners to visit this page and acquaint themselves with the available options.

In addition to this, government has also announced a socio-economic plan worth R500 billion to help stimulate the economy and assist individuals in need. This translates to roughly 10% of South Africa’s annual GDP, which is significant.

On a more personal note, NuPay has seen the impact that this pandemic has had on our client base. Numerous businesses were either unable to trade or could not trade at full capacity. Various initiatives and compromises have been implemented to aid these customers in surviving during this time.

NuPay has also launched an online solution for the micro-finance industry, which allows its micro-finance customers to remain operational during the lockdown in a non-face-to-face environment. NuPay’s e-commerce solutions also allow its retail customers to sell their goods and services online with integrated payment portals for the processing of payments.

The opening line of Charles Dickens’ famous novel: “A tale of two cities” reads: “It was the best of times; it was the worst of times…” The small business scene will never be the same, the question is – are you ready to change with it and explore new opportunities?

As NuPay, we are excited to go on this journey with you. Contact us today on 011 617 1800.

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Editorial contacts

Renette Van Zyl
Nupay
renettevz@nupay.co.za