Business Rescue a solution to SA businesses failing due to loadshedding impact?
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GUEST – Gareth Cremen is a Partner in the Business Restructuring, Rescue & Insolvency team at Cox Yeats
As businesses of all sizes, industries, and expertise scramble to keep the lights on and operations running, while weathering the simultaneously raging storms of economic uncertainty, limited access to credit, and high levels of competition, recent StatsSA figures on company liquidations indicate what appears to be a steep climb in the number of liquidations in the fourth quarter of 2022.
The impact of this state of play on small businesses, in particular, gives much cause for concern.
SMEs in South Africa represent more than 98% of business, employing between 50 – 60% of the country’s workforce across all sectors. And while the GDP contribution from SMEs lags behind other regions, there’s no denying the importance of small businesses to the lives and the futures of people who call South Africa their home.
As businesses of all sizes, industries, and expertise scramble to keep the lights on and operations running, while weathering the simultaneously raging storms of economic uncertainty, limited access to credit, and high levels of competition, recent StatsSA figures on company liquidations indicate what appears to be a steep climb in the number of liquidations in the fourth quarter of 2022.
The impact of this state of play on small businesses, in particular, gives much cause for concern.
SMEs in South Africa represent more than 98% of business, employing between 50 – 60% of the country’s workforce across all sectors. And while the GDP contribution from SMEs lags behind other regions, there’s no denying the importance of small businesses to the lives and the futures of people who call South Africa their home.
