Little but nimble
THE ABILITY TO ADAPT easily and contain costs is one of the reasons a significant number of South Africa’s small business enterprises remain profitable despite the prevailing recessionary environment, which has hit big businesses hard.
A survey by World Wide Worx reported a good 67% of SA’s small and medium enterprises (SMEs) managed to rake in profits at year-end 2008, with 28% of them reported as strongly profitable. Only 5% of the surveyed SMEs weren’t profitable, while 24% were breaking even.
Arthur Goldstuck, who led the survey, says given the recessionary conditions it was amazing that many SMEs were stable. “Small businesses are very adaptable,” he says. “Their main focus is on keeping their customers and managing costs.”