25 September 2018
Policy uncertainty has knock-on effects on investment and the rising cost of living means consumers are struggling to make ends meet. The question is, can local businesses do anything to mitigate risk and attempt to recession-proof their businesses?
Jannie Rossouw, Head: Sanlam Business Market believes they can. “While it is hoped that next month’s mid-term Budget will see the announcement of structural reforms to reduce the cost of business and living, there are also steps that business owners can take to steer their businesses through the current challenges and rise to Ramaphosa’s plea to only resort to retrenchments as a last resort.
Rossouw suggests taking a step back from the business and making key strategic decisions. Some are simple and others may require more time to implement, but having a clear view on business finances and a conservative plan is an empowering start. Rossouw suggests the following:
In South Africa, we are in dire need of economic growth to stimulate the business sector to flourish, expand and create much needed employment opportunities. SMEs are estimated to represent 34% of the GDP contribution in South Africa and are also a key employer – proof that business owners both big and small play a critical role in the economy. Rossouw concludes that Ramaphosa’s plan for recovery is hopeful, especially given its employment and SME upliftment focus.