Answer to Question #316656 in Management for Ander

Question

Discuss the strategies that South African firms can implement to manage the COVID-19

pandemic.

Answer 1

Boost the national entrepreneurship ecosystem

Governments can enhance the national entrepreneurial culture by promoting programs that prioritize SMEs as preferred suppliers. They can also work to identify and bridge gaps in business enablement that could hinder SME growth. In addition, they could provide outsourcing support for back office services, something that small SMEs typically struggle with. Government could also focus on raising awareness among SMEs as to what support—financial or otherwise—is available to them.

2. Invest in the skills and capabilities that SMEs need at this time

Government can continue to ensure that entrepreneurs are supported with the skills and capabilities they need to rebuild and grow their business after the crisis. Most would benefit from additional training, for example, in business scenario planning or managing scarce financial resources. This would be particularly relevant where relief funding is provided. Government could also work with industries and sectors that are most under threat from COVID-19 to develop resilience strategies and to help them reimagine their business models going forward.

3. Drive innovation, research, and development

Research and development are key requisites for innovation and growth and successful entrepreneurship ecosystems recognize this.

For example, Malaysia’s national commercialization platform—PlaTCOM Ventures—helps entrepreneurs turn their ideas into successful products and services. In South Africa, more will need to be done to identify and fund high-growth businesses and support innovation even where current financials do not support this.

4. Provide targeted and sector-specific support for SMEs now and post crisis

There is a significant opportunity for government to work with entities such as the Small Enterprise Development Agency (SEDA) and the Small Enterprise Finance Agency (SEFA) to provide nuanced, sector-specific interventions to help SMEs get back on their feet post-crisis. Some sectors, for example, will need initial financing, while others may need more sustained support. As far as is possible, given that this support will impact the government’s financial position, this could extend to continuing initiatives such as PAYE deferments and tax breaks instigated during the crisis. All these support mechanisms need to be clearly and rapidly accessible to ensure that SME leadership is not having to spend too much time managing financing processes while also managing the crises in their