Growing a business during tough economic periods is a challenge, and for small businesses in South Africa, it’s even more complex. Factors like socio-economic pressures, political uncertainty, fluctuating global markets, rising operational costs, and the often isolated path of solopreneurs all contribute to creating a difficult landscape. For many local small businesses, these challenges represent a tipping point—where innovation and radical change are necessary for survival and growth.
Despite the optimism expressed by small businesses, more needs to be done to enable sustainable growth. 87% of small businesses in South Africa are positive about their outlook for 2024. However, it’s essential that we ask ourselves how we can create better support structures, partnerships, and technologies to remove barriers and promote long-term growth.
The Impact of Digital Adoption
One key to small business success lies in driving greater digital adoption. Technology played the most significant role in helping businesses stay afloat over the past year. By automating mundane tasks, digital tools save entrepreneurs valuable time and offer critical support in areas such as securing funding, entering new markets, gaining better insights into business performance, and streamlining day-to-day operations.
That said, several barriers still hinder the full potential of digital adoption. Cost (66%), a skills gap (65%), and uncertainty about how to start (41%) are major obstacles for many small businesses. But the potential for digital transformation remains.
When adopting technology, businesses need to focus on the specific challenges they face and how digital tools can address them.
Accountants as Digital Pioneers
81% of small businesses view their accountant or bookkeeper as their most trusted advisor. This highlights the pivotal role accountants play in driving business growth and supporting the digital transformation of small enterprises.
Accountants act as digital advisors, helping businesses adopt technologies that streamline financial operations. With cloud-based accounting software and real-time financial insights, small businesses can make more informed decisions and identify opportunities for improvement.
By fostering collaboration and embracing digital transformation, we can create an environment where small businesses not only survive but thrive. A connected, digitally empowered ecosystem will unlock new opportunities and fuel growth, ultimately contributing to the success of South Africa’s small business economy.
