During the nationwide lockdown, many small businesses that were not classified as ones that provide essential goods or services, had to temporarily close down at the end of March.
One such business is Bellville-based hair salon, Pro-Cut Hair Stylists (Pro-Cut), owned by hairstylist and entrepreneur Elrese Paul.
Pro-Cut Hair Stylists, Bellville, had to temporarily close down. PHOTO: Callan Riddles
Paul was given less than a week to prepare to temporarily shut down, as her business activities could not carry on remotely.
According to Paul, the most pressing problem they’ve faced during the lockdown is that both she and her staff need additional financial support. “It’s very stressful that there is no income,” said Paul, adding that she is struggling to service her monthly financial obligations.
No work, no pay
Paul is concerned about her staff, who are currently not receiving an income during the lockdown. They can claim UIF, but it takes so long to process, she said.
According to Shereen Williams, one of the hairstylists working at Pro-Cut, this is one of the worst times for her in her 35-year career.
‘[Currently, it’s] no work, no pay,’ said Williams. This has been a significant concern of hers during the lockdown, said Williams.
Like many other businesses, Pro-Cut has been vulnerable in the past. Previous water shortages impacted washing their clients’ hair. More recently, rolling blackouts have affected when they are able to service clients as they need electricity to operate their equipment.
With the lockdown in full effect, Paul has concerns about the future of her business. According to her, the possibility of another extension to the lockdown adds to her stress.
Williams, who had similar concerns, said that she “does not feel assured” that she will get her clientele back once the lockdown is over.
Hair salon. PHOTO: Guilherme Petri on Unsplash
Cape Chamber of Commerce and Industry President, Geoff Jacobs, told MatieMedia that small businesses which are directly tied to the expertise of their owners, are in a particularly vulnerable position.
“If the owner can’t ply her trade, no work can get done and therefore no income,” said Jacobs.
In such cases, Jacobs encouraged businesses to think creatively during this time by exploring other streams of income, such as using their expertise in an online service.
“Could a hairdresser reinvent herself as an online specialist, and video record herself providing advice on hair care and hairstyling? With smartphones, one can do excellent quality videos that can be shared via social media platforms,” said Jacobs.
In Jacobs’ opinion, it should not be a case of holding on and waiting for the storm to pass, but about being innovative in responding to this crisis.
“A great deal would depend on the creativity and entrepreneurial flair of the business owner,” said Jacobs.
Hairdressing. PHOTO: Jo Johnston from Pixabay
Immediate relief needed
During the lockdown period, government, as well as various other companies and individuals, have set up relief schemes to aid small businesses who have become distressed during the lockdown period (see infographic below).
Jacobs encouraged businesses to seek relief from the various schemes available, apply for a rental holiday, or appeal to regular customers to forward-purchase ‘vouchers’ to be redeemed once the lockdown has been lifted.
“All of these [schemes] could ensure some inflows so that the business doesn’t go under completely,” said Jacobs.
Watch eNCA interview South Africa’s Small Business Development Minister, Khumbudzo Ntshavheni, about how the government plans to help small businesses during the lockdown:
VIDEO: eNCA
Future-proofing small businesses
So how do business owners like Paul future proof their small businesses? Jacobs believes the best way to do so is to prioritise sustainability.
“It’s difficult with small businesses in the subsistence economy (that is, those who live from month to month), but business owners have to start thinking about siphoning off a percentage of their monthly profits into a ‘sustainability’ fund so that, in time, they build [up] funds for contingencies such as this crisis,” said Jacobs.
The government and President Cyril Ramaphosa have extended the current nationwide lockdown until the end of April. Yesterday evening, in an address to the nation, President Ramaphosa confirmed that an additional amount of R2 billion will be made available for small to medium enterprises (SMEs), spaza shop owners, and other small businesses.
Relief for small businesses. INFOGRAPHIC: Callan Riddles