Lit­tle but nim­ble

Finweek English Edition - - Finweekcontents -

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.”

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