Sep 20, 2021

Mawazo Writing Africa

Writing about the main

Loss of livelihoods: 216 more businesses go bang

A total of 216 liquidations, which were recorded in March of this year, are an increase of 49% compared to the same month last year, according to Statistics SA.

Voluntary liquidations increased by 61 cases and mandatory liquidations increased by 10 cases .

The total number of liquidations increased by 18.9% in the first four months of 2021 compared to the first quarter of 2020.

Financing, insurance, real estate, business services (77 liquidations) ), Retail, catering and housing (47), and manufacturing (10) are hardest hit, Beyond-Covid, a registered nonprofit, said of the data released by StatsSA on Monday.

The hardship is a is a direct result of the past year and affects smaller businesses the most, the organization said. Despite economic improvements, the situation in SA remains precarious.

“It’s not like more companies suddenly got into trouble. Many of the companies that collapsed in March this year, in all likelihood mostly small and medium-sized companies, had problems for many months, if not longer, before closing, ”said Lings Naidoo, co-founder of Beyond-Covid / p> < p> The Beyond-Covid Business Survey, which was started last year during the tough lockdown and was carried out by the specialist management consultancy Redflank, aims to assess the effects of the Covid-19 pandemic, especially on SMEs.

Naidoo said, “Our research has shown that in times of economic upheaval, small, micro, and medium-sized companies are generally 26 times more likely to close their doors than their corporate counterparts.”

He said, 26% of the SMEs taking part in the survey would have to close temporarily or permanently during the lockdown, 54% of those surveyed stated that they were working below their usual capacity and a third expressed the need for funding to continue trading.