K-can Consult

Certified Accountants

Covid 19 impact on small business

The impact of the pandemic  will vary from country to country. At a global scale, it will increase poverty and inequalities. This will need an urgent achievement of SDGS .

In Eswatini, small and medium businesses have been negatively affected, with most opting to close down. It's evident that the pandemic is far more than a health crisis. It is affecting societies and economies at their core.

With the closure of small businesses, a large number of the citizens were later off and some lost their jobs. The loss of of source of income pressed much pressure to bread winners in their attempt to feed their families.

Closure of schools and the need to use social media  for lessons exerted much pressure on parents who had to suppervise their kids at home. Most parents complained that this blended approach was not effective.

Informal business sector was heavily hit by the pandemic. Closure of boarders with South Africa caused most hawkers grounded for they couldn't get wares from the neighbouring South Africa.

COVID-19 Business Recovery Plan

1. Prioritise people safety and continuous engagement.

Ensuring the safety and we'll being of the employees in the work place. People are looking to their employer, community and government leaders for guidance.

2.Reshape strategy for business continuity

Businesses can do this by:

i) Assessing financial and operational risk and respond quickly. 

ii)Evaluate short-term liquidity and instilling cash flow discipline.

iii) Rediscuss debt modifications and loan covenants.

iv) Apply for any available debt relief with government through its various agents such as Swaziland Revenue Authority and Ministry of Commerce

v) Stakeholder management

Keep all stakeholders updated and ensure a regular conduct with suppliers regarding their ability to supply goods and services during the pandemic.

vi) Ensure that you comply with all regulative and legislative instruments  to avoid punitive measures taken against your small business.

vii) Build resilience in preparation for the new normal.

viii) plan for recovery now and not later.

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