A reduction in trading days due to public holidays and Easter, has undoubtedly had an impact on SMEs who have had fewer days to hit targets and inevitably seen a decrease in consumer engagement, the forecast showed.
The latest Business Partners Limited SME Confidence Index found that 9 in 10 South African small and medium enterprises (SMEs) have experienced operational pressure from recent fuel price increases, underscoring the short-term financial pressures facing the sector.
More broadly, the survey points to a growing number of businesses shifting their focus from expansion to short-term survival.
For business owners, this response is understandable. When costs rise unexpectedly, cash flow tightens, or sales come under pressure, the immediate priority is often to stabilise the business as quickly as possible.
While securing short-term finance is often critical and can provide much-needed relief, the urgency to resolve short-term financial challenges can sometimes lead SMEs to make funding decisions that inadvertently create bigger problems down the line.
