Almost half of the small businesses in South Africa were forced to shut down due to the coronavirus lockdown. That is according to a new report from Financial services firm, Finfind.
The report examines the impact of the lockdown on small medium and micro-businesses.
CEO of Finfind, Darlene Menzies, says the study found that around 43% of small businesses had to close down.
“The study that we did was a five-month study. So, from the beginning of lockdown level five up until August month-end. The study had a look at some of the stats in the entertainment industry, restaurants and tourism. 60% of permanent jobs [were] lost, 76% of part-time jobs and SMEs were taking on 53% less casual labourers. If we look at the sample we had, of 1 500 businesses, that took into account the 60% … was 4 600 jobs lost in those 1500 businesses,” explains Menzies.
The video below gives a further analysis of the lockdown on businesses:
Debt relief scheme
The Department of Small Business has approved R513 million in SMME Debt Relief Funding.
The scheme, which opened for applications in April, is set to assist SMMEs with working capital as economic activities have been negatively affected by COVID-19.