Nearly 50% of small businesses to close

Financial services company Finfind has published a new report showing how Small, Medium and Micro Enterprises (SMMEs) bore the brunt of the country’s coronavirus lockdown.

The study, which was published in collaboration with the Department of Small Business Development and a number of business groups, is based on a survey of 1,489 businesses across every major sector.

The data shows that in the first five months of lockdown, 76.2% of businesses surveyed experienced a significant decrease in revenue.

35.2% had cash reserves saved, and of these, 62.6% thought their cash reserves would last between one and three months. However, only 29.2% of businesses were confident they could pay expenses the following month.

Existing debt, lack of cash reserves, outdated financials, no access to relief funding, and an inability to operate during the lockdown, forced the closure of 42.7% of small businesses.

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