A businesses’ online presence is enough to get an investor to dig deep in their pockets and invest in a Small Business because in 2017 and beyond online presence is another indicator of where your business is headed. According to the Small Enterprise Development Agency (Seda) SMME’s contribution to GDP in 2007 was 35%, a target that is expected to increase to 60% over the next 10 to 15 years. The government continues to play a vital role in the development of Small Businesses through tax concessions, grants and free advisory services.
However, in the world that is fast becoming digital; there is a great need for SMME’s to develop business and innovative ideas in the digital space not only in attracting internal clientele but also international investments and donors.
We have seen the success of Mobile money technology in the African continent and how other similar disruptive technologies have managed to capture the market as well as contribute effectively to economic growth. Conversely, according to World Wide Worx.com, Over 51% of small businesses owners in South Africa use desktop accounting tools, and over a third still manage their finances manually.
Digitizing a small business will not only lead to flexibility but also reduced operations costs South Africa’s small businesses must explore various technologies that not only seek to address the country’s socio-economic challenges but simultaneously innovative enough to respond to clientele demands and an increased online revenue stream.
SMME’s are the backbone of South Africa’s economy and there is a call for the government to assist in the developing and training small and medium enterprises to cope as well as adapt to the fast-changing digital market in the continent and abroad.