We are poised to experience an economic massacre in the small business community
Today’s Coronacast by the Democratic Alliance featured:
- John Steenhuisen – DA Leader
- Zakhele Mbhele – Shadow Minister of Small Business
- Josie van Aswegen from Fabulous Flowers in Cape Town
In the lead up Steenhuisen reminded viewers that tonight Cyril will deal with Economic and Social aspects pertaining to the present Lockdown.
The DA is hoping that a solution to the hard lockdown will be announced.
We can expect the Virus to be with us for 18 to 24 months.
The DA is hoping for a bold large stimulus package to be announced – remembering that we must make sure that the package comes from an area that will not damage the economy further or comes from an appropriate place.
Steenhuisen happy to say that Government has now roped in SARS to help the UIF payouts.
On prepared food: Regulations need to be rational and reasonable. This regulation does not seem to make sense.
Zakhele Mbhele – Shadow Minister of Small Business said; “98,5% of the economy is made up of SME’s and Small Business are the best spaces to offer job opportunities for entrants to the labour market.”
Biggest Problems for Small Business:
- What are the relief measures
- Eligibility Criteria
- How to apply
A small business that closes during the lockdown is unlikely to open after lockdown.
On BBBEE criteria:
- The Number One imperative is to protect and preserve all jobs.
- The final criteria for payouts eliminated the BBBEE criteria.
- Women and Youth owned businesses get priority.
- DA have asked for clarity on the racial classification of the owner on the application form.
The DA has challenged the criteria in court.
Josie van Aswegen from Fabulous Flowers in Cape Town says her main challenges include:
- We had our dream shop, doing classes and arrangements.
- In the climate of not being able to trade we diversified to doing vegetable and fruit baskets.
- Clients have stopped paying for work done.
- “We are trying to be as positive or innovative as we can”.
Josie applied for financial relief via TERS, got a reference number at the beginning of the lockdown and still no positive feedback.
As a business owner Josie says she has nowhere to go to get personal monetary assistance.
coronavirusmonitor.co.za and da.org.za/covid-19-relief-resources give the options available to business to claim for relief.
“We are poised to experience an economic massacre in the small business community,” says Mbhele.
“I have trained 8 people in my time that have gone on to start their own small businesses,” said Josie.
Small business is the incubator for the entrepreneurs of tomorrow.
Josie’s landlord has given her rent relief for a month – a benefit that Josie negotiated herself as “… in a small business you do live from hand to mouth.”
It is better to be open and upfront with your bank, landlord etc. and ask for relief.
Municipalities need to realise that to sustain their rates base they need to ensure that small business remains viable.
Start work on something positive as that will make things better. This lockdown is very stressful for small business owners.
The failure of small business will have a knock on effect to big business. If you are a big company and can afford to pay a small business sooner then do so and #BeKind.
Self employed people and sole traders are being prejudiced due to their inability to get a CIPC Certificate.
Online business could help small business to survive and thrive.
Alan Straton
Latest posts by Alan Straton (see all)
- Pay@ Puts Automatic Reconciliation at the Centre of Year-End Collections - 13 November 2026
- Renal Supplies Water Systems Plans Dialysis RO Plants From Tap to Drain - 13 November 2026
- Balwin Properties Sets Out What Comes Standard in Its New Apartments - 13 November 2026
- Dr. T Fletcher Calls for Glaucoma Checks Before the Year Closes - 13 November 2026
- PaperTrail Adds Scout AI Search to Its Document Management Software - 12 November 2026
