Smaller players major movers in jobs stakes
Supporting local business critical, say consumers
According to a report from an independent research firm, 95% of consumers surveyed in the 2022 report felt it was essential to support local businesses.
Conducted by Arthur Goldstuck’s Word Wide Worx among 2400 South Africans across the country, it was interesting to discover what turns customers into a business’s biggest fans.
Santam’s executive head of strategic business development, Gerald van Wyk, believes this is the most important finding from this year’s survey.
“It was incredibly encouraging to see that 95% of respondents felt it was important to support local businesses. This support enables these establishments to continue contributing to the country’s economic growth and recovery. Creating and supporting more micro, small and medium-sized enterprises (MSMES) is crucial, particularly considering the high unemployment rate we are battling to reduce.”
To emphasise his statement, Van Wyk points to recent statistics released by the World Bank, which says that seven out of 10 jobs in emerging markets are created by SMES.
Additionally, the International Finance Corporation estimates that MSMES account for up to 90% of formal businesses in South Africa and employ 50%-60% of our country’s workforce, contributing no less than 34% to GDP.
Whether it’s the butchery that knows their favourite cut of meat, the car wash they know will treat their pride and joy with care, or the building materials store that meets all their DIY needs – these are the businesses that add value to their lives.
As with its previous two reports, the insurer explored a range of establishments and services across 12 categories. The report’s findings also revealed that a good overall experience (22%) was the most important factor that won consumers over and awarded businesses the title of “Most Loved Local”.
Arthur Goldstuck advises local business to:
• Never compromise on experience – that includes good service, offering value for money, quality products, and making customers feel like locals
• Greet new and existing customers with a friendly face
• Accommodate younger customers – they regard delivery services highly, so businesses should try meet them halfway by offering added convenience
• Retail chains can benefit from creating a local experience – branches must tailor their space to reflect their community.