Question

How did the Covid-19 pandemic affect the small business sector in South Africa?

Answer 1

There are approximately 5 million small and medium sector businesses that are south africa based and are hugely impacted by Covid 19. Small scale businesses represent 98% of businesses in South Africa which employs half of the population of the country.

The most harsh impact has been suffered by women who were the fist to be pushed out of employment. These were 70% of the businesses that employed women. These small business workers did not have any govt aided social security. And thus no unemployment or health insurance. 90% of the employers in these businesses had to lay off employees as they were not earning enough to pay salaries. The prediction is that 60% of these businesses will be shut before the pandemic is over. There is limited access to liquidity. Even if available the business confidence is low on the top of low awareness of opportunities in the new world. Accessing the right markets in order to sell products and services is a challenge. There isproblem of digital divide and adaption of online business . Sectors worst affected include tourism, hospitality, retail.