INDUSTRY NEWS
Small businesses, already hard hit by the Covid-19 pandemic, have borne the brunt of the recent civil unrest that affected parts of KwaZulu-Natal (KZN) and Gauteng, accounting for 89% of the businesses impacted. New research from non-profit company BeyondCOVID, looking specifically at the impact of the riots on businesses across various sectors, reveals that SMMEs – which provide over 70% of the jobs in a country where almost one-third of the population is unemployed – stand to lose a staggering R3,4 billion a month in revenue as they attempt to resume operations. They will also need at least R16 billion in operational funding to recover, according to the survey, which was conducted by specialist management consultancy Redflank during July, shortly after riots brought parts of the country to a standstill.
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89% OF BUSINESSES IMPACTED BY RIOTS WERE SMMES Already battling with access to markets and affordable funding during the pandemic, many small businesses now face a 63% drop in revenue since looters ran rampant through the streets. This blow comes in the wake of the pandemic which, according to BeyondCOVID’s second survey results released in March, had resulted in a massive drop in revenue since March 2020. NO INSURANCE For many small businesses, already brought to their knees by the pandemic and economic uncertainty, re-opening their doors after recent events will be a considerable challenge. BeyondCOVID’s latest survey reveals that 62% of impacted small businesses do not have business
insurance and of those that have closed their doors in recent weeks, only 5% have business interruption insurance. Cognisant of the critical role SMMEs play in the economy and job creation, the BeyondCOVID board of directors, led by advocate Fay Mukaddam, is engaging with government, the private sector and civil society to grow BeyondCOVID into a national cause. “While government and large business interests are critical to the success of BeyondCOVID, it’s also true that all citizens can contribute. Avenues for crowdfunding contributions, along with the innovative approach (Above left): Lings Naidoo of Redflank.
SOUTH AFRICAN BUILDER SEPTEMBER 2021
