(4 minutes read)
· Covid-19 and the national lockdown in South Africa have played havoc on small businesses, with the result that a number of the units are staring at the prospect of winding up the operations
· According to Bloomberg’s Misery Index, which is calculated on the basis of inflation and unemployment, states that South Africa ranks as the third-worst country among major economies.
Covid-19 and the national lockdown in South Africa have played havoc on small businesses, with the result that a number of the units are staring at the prospect of winding up the operations. The deep depression continuing in the country since long also contributed to the pessimism among the entrepreneurs.
Tourism and hospitality are singled out for their major impact. Restaurants and bars were under lockdown due to the ban imposed by the government to prevent the spread of the pandemic. Their wait period for re-opening was over six months, considerably eroding their bottom lines.
According to Bloomberg’s Misery Index, which is calculated on the basis of inflation and unemployment, states that South Africa ranks as the third-worst country among major economies.
Beaver Immigration, a Canadian immigration service company says that it has seen a 50% spike in the business since the beginning of June. Small business owners in large numbers are seeking immigration. They include franchise owners; alcohol related businesses, restaurants and hospitality businesses, textiles, software companies, and other IT related businesses.
A large number of applicants seeking immigration have been forced to close down and they are reluctant to take another risk by re-starting their businesses since the business confidence in the country is in the lowest ebb. They feel it may get compounded because of the large number of cases pending before the labor courts and other places seeking compensation.
Many of these small time employers applied to the Unemployment Insurance Fund (UIF), and temporary employer/employee relief scheme (Ters) to tie down their financial distress. But no affirmative action has come from the government side.
The middle class as well are seeking to move to other destinations swelling the number of aspirants. Most sought out destinations are New Zealand, Australia, Canada, the United Kingdom, UK, and the US.
This trend is not alone confined to South Africa. Third world countries are also facing similar problems. Small businessmen and professio0nals are coming forward in large numbers to migrate to developed world due to lack of opportunities in the bhome country.
