What MTBPS 2017 means for SMEs
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