How SMEs Can Adapt And Thrive In South Africa Today
It’s been said before, but the reality is that small-to-medium enterprises (SMEs) are quite literally the lifeblood of this country’s economy. This isn’t just hyperbolic speak. SMEs make up more than 98% of businesses across the country and contribute 39% towards the country’s GDP.
The question is, how do they keep going when the going is this tough? Case in point, in the second quarter of 2022, data from specialist SME financier, Business Partners, showed that South African SMEs confidence took a major dip, thus inhibiting growth.
Given that loadshedding, rising fuel prices and interest rate hikes continue to threaten their ability to survive – never mind adapt and thrive, it’s more important than ever for SMEs to find ways to adapt in order to thrive.
What follows is a look at a few of the challenges and ideas that will hopefully inspire you to push through the dark times and into a brighter tomorrow.
- Prepare For Better Access To Finance
Did you know that a massive portion of SMEs in South Africa are considered ‘survivalist firms,’ founded by the most underserved members of society? It’s therefore not surprising that most small business owners often lack the capital to fund their efforts or don’t have a strong enough credit rating to receive funding.
Additionally, many banks in South Africa are conservative and often resistant to lending to new, seemingly risky start-ups.
Even if this isn’t relevant to your context, most first-time entrepreneurs have never produced a business plan, conducted market research, or pitched their business idea to a group of funders.
In order to survive, though, you need to be able again access to finance, and this means being thoroughly prepared before you approach investors or banks. Make sure your documentation is in order, show your projected value using widely accepted methods, and research how to have these in depth conversations.
- Seek The Innovative Road
According to research, companies (regardless of their size) that innovate tend to expand more quickly than those that don’t. It can certainly be a challenge for entrepreneurs who may be uncertain as to whether a new or existing idea might be successful in the real world.
To that we say, embrace partnerships with companies who intentionally aim their services at the SME market. At Huge Connect, we pride ourselves on helping SMEs find the right, innovative connectivity solution that is affordable and scalable. We want these newer start-ups to be able to benefit from our years and years of success and experience so that they don’t feel unable to take advantage of a system or technology that could push their business into the next level.
- Understand The Threats
A major challenge that SMEs need to figure their way around when it comes to the survival of their businesses is that of infrastructure.
It is absolutely crucial for business growth to have dependable and affordable access to roads, water, electricity, communication services, and connectivity. Not every business is impacted in the same way, which is why it’s important to understand what threats could overwhelm your business.
Is it crime? Lack of access to transport? Do you need dependable Internet and would loadshedding cripple your operation? Understanding these threats is the best way to make a plan for your business to adapt and thrive.
- Backup To Avoid Loadshedding
No one really thinks that loadshedding is going anywhere anytime soon. Maybe back in 2007, when the first scheduled blackouts were rolled out, we thought it was a temporary solution. Now, though, we know that loadshedding is going to be part of the South African socio-economic reality for quite some time.
To that end, a big part of ensuring that your SME adapts to the reality of rolling blackouts and can thrive in spite of this challenge, is actively looking at how you can mitigate the effects of loadshedding.
One such solution can be found in our backup solution – the Huge Connect Fixed LTE solution. We can offer you a vital lifeline for when loadshedding threatens productivity, interrupts that business-saving sale, or disconnects you from a process that could mean the difference between making a deadline or delivery and losing a customer.
Essentially, the Huge Connect Fixed LTE solution includes proactive monitoring of your Primary and Fixed LTE Backup Link status, the ability to aggregate back-up data usage across your multiple sites, and a seamless connection over to the Huge Connect Fixed LTE network as a backup link when your Primary Broadband Access Link fails or is temporarily unavailable.
Importantly, our improved pricing model allows you to only pay for data when you use it and we are always a call away if anything goes wrong.
- Hire The Best // Invest In Your Human Capital
The people in your team have the power to make or break your business. It can be difficult to find the right people to fill the right ‘seats on the bus,’ as the saying goes. Particularly when it comes to finding staff for sales, finance, and accounting positions. Thankfully, it’s simpler to find competent people and screen them for abilities, experience, and personality attributes using the most recent IT tools. This includes using social media platforms, like Facebook and LinkedIn, to find the best people to join your company.
- Widen Your Professional Network Access
The professional networks of more seasoned business owners or business graduates are typically inaccessible to new entrepreneurs – but don’t let this stop you!
SMEs can take advantage of the world’s pivot towards virtual networking in order to benefit from connections with industry leaders. Don’t overlook this as it can lead to access to funding, mentorship, more lucrative markets, and a host of other advantages.
The Huge Difference
It’s popular to say that SMEs need to be protected from the harsh realities of loadshedding, fuel price increases, and high inflation rates. And we would agree for the most part. But SMEs also need to recognise these threats and adapt so that they can thrive.
Instead of looking for protection against loadshedding or struggling against the tide of low tech solutions, it may be time to look at what resources there are for you to invest in.
Connect with us and let us help you today.
