How SMEs can prepare for impact of Covid-19

DURBAN – Businesses will bear the brunt of social distancing practices and disrupted supply chains caused by the outbreak of Covid-19. 

While it is too soon to say what the impact of the pandemic will have on the local economy, many small to medium sized enterprises (SMEs) will be most effected by changes in customer behaviour, labour shortages and late payments.

“Given their size, lack of access to emergency capital and additional resources, small businesses are likely to be most affected by the declaration of national state of disaster,” says Daniel Goldberg, Chief Executive of Bridgement, a Fintech company offering digital invoice financing and credit facilities to SMEs. 

“It’s difficult to determine how long businesses will experience disruptions from Covid-19, it could be weeks or months. The best thing SMEs can do is to be as prepared as possible,” said Goldberg, who highlights some key considerations for local SME owners to manage the impact of the outbreak:

1. Monitor customer behaviour: Small businesses may need to alter their activities to suit their customers change in behaviour. SMEs in the service industry are at risk due to restrictions on travel and fear around contamination, making it more difficult to make up cash flow losses.