SMALL and medium businesses play an instrumental role in economic stability and job creation. Yet, many of these businesses battle to keep their doors open.
Rising fuel and food costs are making it difficult for everyone to control spending and budget adequately, but this sector also faces threats such as cybersecurity, the ongoing challenges of load-shedding, and little government support.
“With all these challenges, there is also an invaluable opportunity. If SMEs can empower themselves by facing these issues head-on, it will not only benefit the economy, but it can boost job creation,” says Tom Stuart, chief marketing officer for Lulalend, a company that offers short-term business funding for SMMEs.
Stuart says that for SMEs, innovation and modernisation are crucial for driving competitiveness and accessibility. By procuring the right tools, business owners can make sure they’re in a strong position to drive business growth and mitigate risks.
Invest in cybersecurity
Cybersecurity is an ongoing threat for businesses, and SME owners shouldn’t underestimate the likelihood of being targeted. Cybercrime can have irreparable consequences, like loss of critical business or customer data. It can also breach the trust built between SMEs, their suppliers, and clients.
“Cybersecurity is not simply a problem that your I.T. department needs to solve. Investing in the right security infrastructure, working with third parties to develop effective cybersecurity policies, and facilitating staff training workshops are all part of mitigating the risk,” says Stuart.
Business infrastructure upgrades
South Africans have become all too familiar with the impact of load-shedding. While getting a generator might not be the most feasible solution for everyone, it’s still important to be aware of how load-shedding affects your business, specifically your business’s assets.
Power surges can damage company hardware, leading to unforeseen costs to replace computers, printers, or other critical electronic devices. This can add up to quite a bit of money in the worst cases.
In the absence of a generator, an uninterrupted power supply (UPS) system or surge-protecting power strip can help protect valuable electronics from surge damage. While these aren’t cheap by any stretch, they can save a lot of money in the long run.
Smart partnerships
Finding adequate support as an SME is arguably the most important part of becoming successful and profitable, and SMEs are no exception. SME business leaders should adopt a strategic approach, looking for the right suppliers and advisors to help them grow effectively and sustainably.
“The right opinion matters. Whether it’s a business development consultant or an SME-centred financial services partner, working with the right people will play the biggest role in helping business owners keep their doors open. Sustainable SMEs that are savvy in their approach are arguably one of country’s best opportunities for sound economic recovery.”
