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In today’s fast-paced work environment SMEs in South Africa must leverage technology to level the business playing field. Digital tools empower smaller businesses to make the most of their resources, increase efficiency, and better compete with larger players.
Technology levels the business playing field for small and medium businesses. Digital tools allow smaller companies to maximise their resources and scale their offerings to better compete with larger competitors.
From digital marketing to e-commerce platforms, investing in technology is a game-changer for South African SMEs.
Read more on digital transformation in business: Digital transformation: The key to competing and thriving in business
In 2024, turn your focus to social commerce. Robust investment in your e-commerce capabilities and skills (and capacity) will position your business to take advantage of South Africa’s soaring social commerce industry, poised for a 60% annual increase to reach US$1.4 billion in 2023. Platforms like Instagram and WhatsApp empower SMEs to market directly to their customers on their preferred platforms.
According to a recent report by Meltwater, South Africans spend, on average, three hours and 44 minutes daily on social media, predominately WhatsApp, Instagram, Instagram, and TikTok.
And with only 59% of internet users active on social media, the growth potential is significant. Tapping into social commerce and its supporting technology platforms enables your business to meet your customers where they are.
Automating routine tasks standardises operations and frees up time for strategic decision-making. Automation solutions can reduce costs, improve productivity, and ensure consistency.
With social media usage high in South Africa, social commerce is booming. Invest in e-commerce capabilities to harness social platforms like Instagram and WhatsApp, which allow SMEs to connect directly with customers. South Africans spend over three hours daily on social media, with WhatsApp and Instagram leading usage. By tapping into these platforms, your business can engage with customers where they already are, driving sales and brand loyalty.
The right technology also requires skilled talent to manage it effectively. Upskilling employees on digital tools can increase technological efficiency, improve customer experiences, and boost business growth. Whether through in-house training or online courses, make sure your team has the knowledge to optimise digital tools.
Investing in tech requires the right talent and support to achieve its full potential and, ultimately, enable growth. Ensure you have the know-how and funds to optimise your tech efficiency.
Innovation is the backbone of growth. Prioritising innovation means you are proactively disrupting outdated processes to establish more efficient ways of working, ultimately doing more with fewer resources.
Innovation flourishes in a supportive environment. Encouraging employees to pitch ideas, debate openly, and collaborate across teams, being open to testing new ideas is the key. Employees will need time and space to break from their routine and share ideas, from in-office brainstorming sessions to an offsite company retreat.
Put these sessions in the diary and ensure team members understand the challenges you are trying to solve. Those specific questions to guide the ideation process and ensure employees feel safe and comfortable to share their thoughts. SMEs can continuously improve processes and find new ways to meet customer needs.
Allow teams to test new approaches and learn from both successes and failures. Small, low-risk pilot projects can pave the way for larger, transformative changes that position your business ahead of the curve. Put any new initiatives into motion as soon as possible so employees can witness their impact and remain motivated to share. Allowing teams to push boundaries, experiment, and learn from mistakes creates ongoing innovation.
Hiring people with diverse perspectives brings fresh thinking to problem-solving. Different perspectives or backgrounds to put a new lens on the same challenges. Diversity in the workplace is a catalyst for fresh thinking and innovation. Alternatively, ensure your existing staff regularly attend training courses to inspire new thoughts and approaches.
The township economy is a rapidly growing market, estimated at around R900 billion, and presents vast opportunities for SMEs in various sectors, from healthcare to retail. The key to cracking the township economy is identifying pressing problems and creating sustainable, scalable solutions.
Township communities are rich with opportunities for innovative solutions. By researching local challenges and consumer preferences, businesses can introduce sustainable products and services that meet real needs.
Understanding township markets is essential. Engage directly with local stakeholders, stay informed about trends, and invest in research. Fast-growing businesses like spaza shops and small-scale manufacturers highlight the township economy’s dynamism. SMEs with the right approach can tap into this growth while supporting local development.
Recent investments in township infrastructure, like improved connectivity and access to finance, provide opportunities to engage in these markets more easily. SMEs that leverage these initiatives stand to benefit.
Over the past few years, ongoing cost-of-living increases have rendered South Africans strapped for cash. And with rising interest rates and petrol hikes set to continue for the foreseeable future, SMEs have to mitigate production cost hikes and squeezed consumer budgets.
Taking a strategic approach to pricing, which entails striking a good balance between remaining competitive and maintaining profitability, ensures your profits remain stable.
As economic pressures continue, South African consumers are more price-sensitive than ever. SMEs must adopt strategic pricing strategies to balance affordability with profitability.
Understanding your customer’s spending patterns and preferences is imperative for setting the right prices. With rising costs across the board, pricing that reflects consumer needs and sensitivity to economic conditions is more important than ever.
Consider value-based pricing, where products or services are priced according to perceived value rather than fixed rates. Other options include usage-based pricing or bundling services to add value without increasing costs.
During challenging economic times, pricing expertise can make a significant difference. Working with a pricing consultant can help protect profit margins while staying competitive.
Empower your business to seize big opportunities in the new year and beyond. Let us help you gear up and invest to strengthen your business over the next 12 months. Our innovative funding solutions give you access to fast working capital and flexible terms prioritising your company’s health. With Genfin, you are always in safe hands.
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Email: info@genfin.co.za
Release up to R5 million with a 90-day repayment grace period.
