JOHANNESBURG - 86 percent of small business owners said that their business will survive the pandemic according to a survey by Retail Capital.
This despite the majority of them not receiving relief from landlords or financial institutions during lockdown. 73 percent of the small business owner did not earn an income as they could not trade (72 percent) .
The survey, which was conducted in October 2020, is based on hundreds of responses from business owners operating in industries. 59 percent of these businesses have been in business for over 3 years.
“Despite all the odds, South African SMEs have shown their mettle and risen to the many challenges that the pandemic has thrown at them. They adapted to the situation and found solutions to their problems, in many cases creating opportunity out of adversity,” said Karl Westvig, Retail Capital CEO.
According to the survey 61 percent of busnesses did not retrench staff but 66 percent said that they put their staff on short time or reduced salarie to help them earn some kind of living during the pandemic.
Of the 68 percent of SMEs who have premises only 34 percent enjoyed a rental holiday.
The surveyed showed that of the 44 percent of SMEs that applied for financing, only a small amount of businesses (16 percent) received assistance. While 47 percent applied for TERS, only 35 percent enjoyed some relief. 18 percent of small business owners who sought help from the South Africa Future Trust (SAFT) with just 10 percent receiving relief.
Despite these challenges, the survey’s small businesses are still upbeat with 39 percent reporting that they have changed their business in some way since lockdown.
Among those businesses that did close, 34 percent said they would open a new venture while a whopping 75 percent reported learning something from lockdown that they will apply in their business going forward.
“I am deeply proud of how far these SMEs have come. They have indeed shown that from adversity comes opportunity and when faced with what look like insurmountable challenges, they can be overcome by adopting a positive mindset and looking for ways to unlock opportunities,” concluded Westvig.
BUSINESS REPORT ONLINE