Durban - THE South African economy was struggling long before the Covid-19 pandemic, and the situation has worsened since the lockdown in March
About 38 of 40 small business owners in Overport, Reservoir Hills, Chatsworth and Phoenix have said their sales have dropped by between 40% and 95%.
Some of them have said they might have to close within the next few months, while others are diversifying.
But most of them are holding on to hope that normality will return after the virus peaks in the coming weeks.
About 95% of those surveyed said the government was not doing enough to help small businesses.
* Hemal Bhana of Shrimati’s Clothing in Reservoir Hills, which specialises in Eastern fashion garments, said that in comparison with last year, sales were down by 65%.
“There are no large gatherings for weddings and other occasions, so the sales have been impacted.”
Bhana said despite investing in advertising for its annual July sale, the response was poor.
“If things don’t get better, we’ll be forced to close as we won’t have enough cash to cover our expenses. I think the government should consider reducing the tax so that we can survive.”
- The owner of a nearby furniture store said: “Since June, our sales have dropped by about 95%. We've had to dip into our savings to keep our doors open.”
He said he had eight staff and he would consider implementing a new aspect to the business rather than have it close permanently.
“During this time, the government should suspend all tax on businesses, especially small businesses. The politicians should stop with their corrupt ways and the relief funds must be spent on the intended purposes.”
- A security company owner in Chatsworth has retrenched 16 security guards.
“Some of the logistics companies I was contracted to stopped operations and our clients cannot pay for the security patrolling services in neighbourhoods anymore.”
He said he had reached his credit limit on his credit card and that he still had to pay his niece’s outstanding college fees of R23000.
“Business is down by 80%. I am now looking for a job. The government needs to sit down with us and to look at our needs, instead of just saying ‘apply online’ and then the majority of us don’t meet the criteria.”
- A Montford beautician said her sales were down by 40%.
“My clients used to come in for eyebrow, upper lip and leg waxing. Now, they just have their eyebrows waxed and are buying hair removal creams and home waxing kits to save on costs. I am the only one working at home so I need to think of a side hustle.”
The beautician said the government needed to step up and assist all small businesses - not just those that were B-BBEE compliant. “I applied for relief but I didn’t qualify because my business was not black-owned. We live in a democratic country. Every race should be given equal opportunities.”
- A baker in a township south of Durban said her sales declined by 60%. She usually baked cakes but now makes and sells biscuits and bread.
“I wouldn’t feel so stressed if I didn’t have our household accounts to think of. I think the government should ask the municipality not to implement the tariff hikes. If we can be given some sort of relief, we can save to pay other bills.”
- Raeesa Padayachee works for her family’s mechanical business in Phoenix. It has been operating for 18 years.
“We have hit rock bottom. Our profits are down by 70% and we cannot afford to pay our utility bills.”
Padayachee appealed to the government to provide small businesses with three-month interest-free loans to cover their outstanding expenses.
- A fabric store owner in Overport said business sales had dropped by 60%. He said he was able to retain his staff but their salaries were reduced.
“Many are understanding. They would rather have a job than no job.”
He said the landlord had discounted the rental and, while he was concerned about the viability of the seven-year-old business, he held on to the faith that things would turn around.
“South Africans are resilient. They have learnt not to rely on the government for financial aid. We will just find our way to survive.”
- The owner of a nearby women’s clothing store is now selling masks to earn an income.
“Prior to the lockdown, I made a comfortable profit. I paid for the shop’s rental, my child’s school fees and my home expenses. Now, I barely get customers and my sales are down by 50%.”
The mother of two said the government needed to establish a women-owned business relief fund for those who were the sole breadwinners.
“As a single parent who has to also take care of my household, the government should be doing more for us.”
- A stationery shop owner, who also sells office furniture, said sales were down by between 40% and 50%.
He said if the pandemic continued to impact the economy, he expected his 35-year-old business would nosedive in a few months.
“While it’s scary, we hope that we will be able to pull through and rebuild in the coming months.”
The owner suggested the government reduce the salaries of public officials.
“Too many people are holding high-ranking positions and they are not making a difference in the country.
“Use those salaries to assist small businesses.”
- A home-based nail technician and make-up artist said she lost between 85% and 90% in revenue, and she now depended on her family for help.
“I cannot even afford to buy the basics anymore.”
The woman said because she worked from home and did not pay rental, she would remain open.
She said the government should make small business relief more accessible.
“There are too many criteria that need to be met before you can be given relief. I attempted to apply, but could not meet half of the criteria.”
- A baking and decor store owner has lost 50% in revenue.
She said before the lockdown, the shop was closed for three weeks in February for renovations.
The premises were extended to include a baking studio for classes, and a coffee shop.
“But both cannot be used as planned.”
She does not believe the business will survive over the next few months.
“It’s disappointing.
“I have tried to build and expand the business but I was instead dealt a major blow. The store is my only source of income.”
She said the government needed to provide relief to small businesses - as funding and not as loans that needed to be repaid with interest.
- It was not doom an gloom for two businesses.
- Raven Reddy, of Reddy’s of Reservoir Hills, a fruit and vegetable shop, said his sales had increased by 33%.
“The lockdown has actually worked in my favour. Customers are now staying away from the bigger shops and coming to my shop.”
He said he had hired two staff - one on a permanent basis and the other part-time.
Reddy said he was aware that most businesses were impacted financially and he felt the government should play fair and grant all small businesses microloans.
- A tuckshop owner in Chastworth said residents preferred to buy their bread and milk from him instead of going to the busy local stores.
But the customers were no longer interested in buying chips, sweets, chocolates and ice creams.
“My sales are up by 20%. People are only buying what they can afford.
“So now, I don’t need to bulk buy these items, but just the essentials.”
He said his business would survive the pandemic, as he was based at his home.
The tuckshop owner suggested that the government get suppliers to lower their prices so small businesses, like his, could make a profit.
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