03/07/2019
Interesting read.
DO YOU CONSCIOUSLY SUPPORT SMALL BUSINESSES? HERE'S WHY YOU SHOULD!
South Africa's economy is in a tough place right now and I believe we need to become much more conscious with our spending choices. We often think that we can't have a major impact on our economy but I'd like to show you otherwise...
Supporting an independent business is an act of respect; you're acknowledging the tremendous risk and challenges that come with running your own business. Yet, many of us frequent chain stores without considering their local merchant or other small business options.
Think of money as energy. When you support a small business, most of your spend moves across the economy. When you spend R100 with an SME, the majority of it goes to rent, employment, paying for stock, and taxes. Very little of it is kept in a bank account as profit. This is especially true with it comes to employment. Small businesses help stimulate economic growth because a higher percentage of revenue goes toward hiring staff that keep the business afloat. Big corporates produce HUGE profits which don't always recycle into the rest of the local economy.
Currently, the OFFICIAL unemployment rate in South Africa in 2019 is 27.6% although we know it to be much larger on the ground. If we want to create more jobs, we need to improve the conditions for small businesses to thrive so that they can hire more staff.
All in all, I'm not saying boycott big business. They are also important. But I am saying be conscious where you place your spend. All thriving economies also have a thriving SME sector. How you spend makes a difference.