Small businesses take brunt of price hikes
'Communities are resorting to restricting their purchases of food and other basic commodities to the detriment of small businesses'
IN Zululand, the small fish in the big industrial pond are likely to face the toughest time coping with rising costs this year.
According to the Zululand Chamber of Commerce and Industry (ZCCI) and the National African Federated Chamber of Commerce and Industry (NAFCOC), small businesses are worst off as the economy continues to burn holes in consumers’ pockets.
‘NAFCOC is deeply concerned by the continued negative effect increasing food and basic commodity prices have had on businesses,’ said the organisation.
‘The worst hit section of our country is the SMMEs, especially those in the townships who make up the bulk of our membership.
‘They service mostly low income communities whose buying power is being eroded by the price increases.
‘Such communities are resorting to restricting their purchases of food and other basic commodities to the detriment of small businesses.
‘This scenario has negatively affected small businesses and we call upon the government and other stakeholders to join hands with us to find a lasting solution to this matter.
‘NAFCOC will also be working with players in the food industry to find ways of mitigating the impact.’
The ZCCI said the most effective solution would be to boost the economic downturn in SA by creating a business environment that stimulates economic growth.
‘This will allow all businesses to flourish again,’ said ZCCI Chamber President Judith Nzimande.
‘Micro, small and medium sized enterprises lie at the heart of this strategy.
‘To achieve this, the Chamber is in constant contact with the business community to stand together during this time and explore all alternatives to increase their output in order to stimulate economic growth.
‘We are also very active in facilitating a number of training programmes to empower business of all sizes.’
The ZCCI encouraged business owners to contact the chamber for specific information on the training offered and called on larger business to assist SMMEs where possible.
NAFCOC, in the meantime, is embarking on nationwide road shows to engage with members and small businesses to find ways of improving the deteriorating economic climate.
‘We will be presenting our findings and proposals to key stakeholders, including government, private sector and media,’ NAFCOC said.
