What MTBPS 2017 means for SMEs

Weekend Argus (Sunday Edition) - - SPORT -

ap­proach, the term and price to pay, and what im­pact this will have on cash flow.

Seek ex­pert ad­vice. Speak­ing to a fi­nancier who not only of­fers the right type of fund­ing, but who also un­der­stands the busi­ness and the chal­lenges likely to be faced, will en­able the busi­ness owner to be re­al­is­tic about short and long-term cash flow pro­jec­tions.

Relook your busi­ness plan and review ways in which per­for­mance can be im­proved.

If SMEs are pro­vid­ing credit terms to cus­tomers, they should place more em­pha­sis on han­dling their debtors promptly and pro­fes­sion­ally to en­sure their cash flow is not af­fected when it is needed. As ev­ery busi­ness has its share of slow-pay­ing and non-pay­ing cus­tomers, bad debt is a prob­lem for busi­nesses of all sizes.

Now, more than ever, South Africa should be back­ing en­trepreneurs. “The En­tre­pre­neur­ial Ecosys­tem of South Africa: A Strat­egy for Global Lead­er­ship” re­port by Global En­trepreneur­ship and Devel­op­ment In­sti­tute (GEDI) states that by im­prov­ing en­tre­pre­neur­ial con­di­tions by 10 per­cent, $176 bil­lion could be added to the econ­omy.

Cre­at­ing an en­abling and con­ducive en­vi­ron­ment for SMEs will go a long way in help­ing more busi­nesses grow and will add to the over­all suc­cess of the coun­try’s econ­omy.

It is there­fore cru­cial, par­tic­u­larly in try­ing eco­nomic times, that South Africa cre­ates a thriv­ing en­tre­pre­neur­ial-geared ecosys­tem which sup­ports SMEs’ abil­ity to trans­act.

Christo Botes is ex­ec­u­tive di­rec­tor at Busi­ness Part­ners Lim­ited

Christo Botes

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