Time for SMEs to log in to e-commerce
NETWORK REPORTER
A FORECAST by World Wide Worx shows that online retail sales figures in South Africa are expected to more than double from 2016 to almost R20 billion by 2020.
This makes it important for South African small and medium enterprises (SMEs) operating in the retail sector to consider entering the e-commerce space, which is poised for growth as millennials and the digital natives of Generation Z begin to make up an increasingly large portion of consumers.
This is according to David Morobe, regional general manager at Business Partners Limited, who says SMEs with wholesale/retail operations made up the largest non-financial sector in South Africa, according to the 2018 State Entrepreneurship Survey.
“As consumers continue to demand that most things be available at the click of the mouse, small business owners should start considering how they can innovate and adapt to remain competitive, not only with other small businesses but also with large corporates.”
Morobe offered these tips for SMEs when planning an e-commerce platform:
Build and run a professional platform. A website is an essential asset for any business; however, if you decide to add an e-commerce element, you will need to ensure this runs smoothly with up-to-date software. The site must include a shopping cart where items will be placed by users before they check out.
Create content. Take professional photographs of products you plan to sell online and use copy that is informative and enticing on a site designed to be attention-grabbing. Consider new roles in the company. As the online world never sleeps, a business that has an online offering needs to be running full-time. Consider hiring digitally trained professionals who will be able to co-ordinate these online business tasks and assist with any day-to-day issues. Create a secure payment option and delivery strategy. Users need to be sure that the e-commerce site is a safe space to input personal details. A good option is to use an online payment service which allows businesses to accept credit card transactions and payments safely. Retail SMEs should have security to mitigate cyber threats, including phishing, hacking and credit card fraud.
Privacy is key. Develop a privacy policy which is displayed on the website. The policy should include how the users’ data will be stored, collected and used, with an option to opt out of email marketing or newsletters in line with the Protection of Personal Information Act.
A TOP Durban businesswoman is making strides empowering local entrepreneurs to develop business strategies and skills to grow their bottom line and create jobs.
Vani Moodley, chief executive of Vani Moodley and Associates, who started her own business in 2006 after working for more than a decade with NGOs developing small medium and micro enterprises (SMMEs), is providing entrepreneurs with professional training and coaching.
Moodley, an immediate past vice-president of the Durban Chamber of Commerce and Industry, founded Vuka Uzithathe, an NGO focused on gender and economic empowerment, in 1999 after managing seven national branches of the Independent Business Enrichment Centre.
She has a post-graduate diploma in adult education from the University of KwaZulu-Natal, a Master’s degree in public and development management from the University of the Witwatersrand, and 25 years’ experience in the sector. She gained global best practice knowledge in 26 countries.
She founded the NGO after conducting research in India with the Self-Employed Women’s Association and the International Labour Organisation’s Gender Desk with whom she collaborated to further develop her business training manual to meet international best practice.
When the NGO closed in 2006, Moodley opened her own small business focusing on enterprise development, business analysis, leadership and management skills training. She provides her services to SMMEs, corporations and government agencies.
She co-designed a small enterprise development coaching programme with the Small Enterprise Development Agency, which has been used with success since 2012.
“It is a 10-month block intervention with 11 coaching sessions where we meet once or twice a month with
Understand that the long-term investor’s true nemesis is inflation. Don’t be tempted to invest in a cash only portfolio, as this is a reckless decision. the business person. We provide them with group coaching and individual support and information and skills training,” Moodley said.
“We have had an amazing impact and with the last group of entrepreneurs have seen an increase in turnover of 274% (the target was 15%) and an increase in employment creation by 47% (the target was 10%) – 417 new jobs were created in 10 months. “The asset value increased by 75%. Despite the economic recession, employment numbers increased. Interestingly, the asset value increase was higher than employment statistics. It can be concluded that the entrepreneurs chose to be conservative by investing in assets and not employment creation due to the economic downturn and imminent uncertainty.” Moodley said the impact did not stop at the end of the intervention.
“The programme also encourages them to do business together and to share networks,” Moodley said.
Moodley introduced local entrepreneurs, several in the leather footwear, washing powder and clothing manufacturing, printing and construction sectors, to international delegates during a local trade mission last year.
“Eight of our entrepreneurs were selected to expand their business into Mauritius.”
Moodley is motivated not only by the economic growth she has witnessed, but by the personal development of individual entrepreneurs. She said many entrepreneurs struggled with personal issues as well as business trials, such as cash-flow management, access to finance and skills deficits to grow the business.
“Many people have technical skills and get into business without having business management skills. We provide them with access to knowledge, and introduce incentive programmes and international experts to help them bridge the information gap to grow the business and access finance.”