While there has been an increase in the number of businesses being either liquidated or declared insolvent, small businesses owners says they’re being affected differently by the current low growth in the economy. While some are feeling the pinch, others’ profits are climbing up.
Shop owners in the North of Johannesburg say that because of the high unemployment rate and companies threatening to retrench, businesses are not doing as well as they would have hoped.
Mathetho Ngoanametsi runs a shoe art store. Her business repairs and paints sneakers for clients.
Ngoanametsi says her business experienced steady growth at one point. This informed her decision to move to a bigger space, but with rampant job losses, the business is feeling the pinch.
“It’s doing okay, we could do better…We need more regular customers.”
Fortunes are different for another business owner, Nosimilo Hadebe. She started her business by selling concentrated juice.
When the business took off well, she expanded and opened a coffee shop. She says that she experiences challenges as she’s self-funded.
“I’ve been running my business for a year and three months and it has been a challenge in this economy, reason being that I’m self-funded.”