At this time, entrepreneurs and business owners down here in South Africa are doing business during bad times. Indeed, very bad times. South Africa boasts now an official unemployment rate of 29%, the highest since 2008 (FIN24). Replacing the stats with souls, the number of people desperately looking for jobs in South Africa is almost seven million. Apart from losing business because people can’t afford shopping anymore, SMEs may be burdened with higher levels of bad debt.
Doing business during these times usually (and unfortunately) results in many businesses retrenching their workers. Therefore, workers here in South Africa typically react violently and destructively to any austerity measures that are implemented. As a result, mass industrial actions, mainly organized by the government aligned labor unions, cause havoc for both businesses and the community. In fact, unions are under pressure to deliver for members in a brutal employment market, says Ciaran Ryan of Money Web.
So, the jobless people, not having money, still needs food, clothes and shelter – just to live. For that reason, many more rely on social grants. Sadly, some of them will resort to crime – mainly just to survive…
Doing business in South Africa now is doing business during bad times. However, businesses also have a right to survive!