Vutivi
Subscribe
  • Business
    Organisations unhappy with small business bill

    Organisations unhappy with small business bill

    Some changes to employment laws hurt SMME development: study

    Journo starts catering business

    Journo starts catering business

    Additional funding available for some small businesses

    Biggest concerns for South African SMMEs

    Small gin brewer already on retailer’s shelves

    E.Cape woman turns self-taught cotton crafts into business 

    E.Cape woman turns self-taught cotton crafts into business 

    Atteridgeville couple make homes and businesses clean

    Mother turns her passion for baking into a business

    Platform makes investing in property easier

    Platform makes investing in property easier

  • Agriculture
    No changes for black SMMEs on export permits

    No changes for black SMMEs on export permits

    Fishing co-ops can now legally catch fish

    Unemployed graduate turns to poultry business to make a living

    Business feeling the impact of egg shortage

    Access to land & infrastructure critical for most small businesses

    Clothing brand growing piece by piece

    Chicken farmers get help from metro

    Poultry farmer equips others to become a success

    Poultry farmer equips others to become a success

    Tips for starting your business

    Study punts new approach to support young farmers

    Piggery owner urges youngsters to become farmers

    Piggery owner urges youngsters to become farmers

  • Innovation
    From passion to business: Luna Jewellery’s success story

    From passion to business: Luna Jewellery’s success story

    E.Cape mag strives to bring national recognition for local talent

    E.Cape mag strives to bring national recognition for local talent

    Tumi Letshaba co-founder of Next Curve Creation at the SEAMLESS summit.

    Tumi Letshaba co-founder of Next Curve Creation at the SEAMLESS summit.

    Child safety company aims to protect children from kidnappings

    Child safety company aims to protect children from kidnappings

    SMEs are critical for localisation

    CHIETA to launch third tech centre

    Gallery owner creates space for black artists

    Gallery owner creates space for black artists

    Artists can use digitisation to brand themselves as a business

    Maholla app aims to reward consumers for shopping

    Gym owner aims to ensure community stays healthy

    Business incubators help SMMEs succeed

    3D generator will help curb energy crisis, says inventor

    3D generator will help curb energy crisis, says inventor

    Ndabeni-Abrahams unveils plans for SMMEs

    Digital skills academy helps unemployed youth

  • Finance

    No mention of SMMEs in mini budget

    Absa to offer unsecured loans to smaller enterprises

    Absa to offer unsecured loans to smaller enterprises

    Slow growth for co-op banks despite being needed

    Slow growth for co-op banks despite being needed

    Government and banks need to get serious about SMEs: economist

    Government and banks need to get serious about SMEs: economist

    Concerns over how IDC plans to channel money to SMMEs

    Concerns over how IDC plans to channel money to SMMEs

    Financing remains an issue for women entrepreneurs

    Financing remains an issue for women entrepreneurs

    IDC plans to bolster financial support for SMEs

    IDC plans to bolster financial support for SMEs

    Tips for starting your business

    Green energy companies need more support: coalition

    Sefa to investigate money paid to ghost beneficiaries

    Sefa to investigate money paid to ghost beneficiaries

    MPs hear shocking allegations of Sefa dodgy deals

    MPs hear shocking allegations of Sefa dodgy deals

  • Tourism

    Hospitality SMMEs stimulates local economies

    Massive IDC backlog a setback for tourism enterprises

    Massive IDC backlog a setback for tourism enterprises

    Bosses need to understand employees’ realities

    SMMEs to benefit from transformation in tourism dept

    Guest house owner encourages residents to tour locally

    Guest house owner encourages residents to tour locally

    SMMEs must be compliant to access opportunities

    SMMEs must be compliant to access opportunities

    DTIC relaunches programme to boost localisation

    Home baker turns to vegan treats during Covid-19

    Tladi Farm thrives on community support

    Tourism businesses are positive despite challenges, report shows

    Tourism business owner calls on government to pull up its socks

    Tourism business owner calls on government to pull up its socks

    SATSA accuses government of failing the tourism sector

  • Advertising
No Result
View All Result
Vutivi
  • Business
    Organisations unhappy with small business bill

    Organisations unhappy with small business bill

    Some changes to employment laws hurt SMME development: study

    Journo starts catering business

    Journo starts catering business

    Additional funding available for some small businesses

    Biggest concerns for South African SMMEs

    Small gin brewer already on retailer’s shelves

    E.Cape woman turns self-taught cotton crafts into business 

    E.Cape woman turns self-taught cotton crafts into business 

    Atteridgeville couple make homes and businesses clean

    Mother turns her passion for baking into a business

    Platform makes investing in property easier

    Platform makes investing in property easier

  • Agriculture
    No changes for black SMMEs on export permits

    No changes for black SMMEs on export permits

    Fishing co-ops can now legally catch fish

    Unemployed graduate turns to poultry business to make a living

    Business feeling the impact of egg shortage

    Access to land & infrastructure critical for most small businesses

    Clothing brand growing piece by piece

    Chicken farmers get help from metro

    Poultry farmer equips others to become a success

    Poultry farmer equips others to become a success

    Tips for starting your business

    Study punts new approach to support young farmers

    Piggery owner urges youngsters to become farmers

    Piggery owner urges youngsters to become farmers

  • Innovation
    From passion to business: Luna Jewellery’s success story

    From passion to business: Luna Jewellery’s success story

    E.Cape mag strives to bring national recognition for local talent

    E.Cape mag strives to bring national recognition for local talent

    Tumi Letshaba co-founder of Next Curve Creation at the SEAMLESS summit.

    Tumi Letshaba co-founder of Next Curve Creation at the SEAMLESS summit.

    Child safety company aims to protect children from kidnappings

    Child safety company aims to protect children from kidnappings

    SMEs are critical for localisation

    CHIETA to launch third tech centre

    Gallery owner creates space for black artists

    Gallery owner creates space for black artists

    Artists can use digitisation to brand themselves as a business

    Maholla app aims to reward consumers for shopping

    Gym owner aims to ensure community stays healthy

    Business incubators help SMMEs succeed

    3D generator will help curb energy crisis, says inventor

    3D generator will help curb energy crisis, says inventor

    Ndabeni-Abrahams unveils plans for SMMEs

    Digital skills academy helps unemployed youth

  • Finance

    No mention of SMMEs in mini budget

    Absa to offer unsecured loans to smaller enterprises

    Absa to offer unsecured loans to smaller enterprises

    Slow growth for co-op banks despite being needed

    Slow growth for co-op banks despite being needed

    Government and banks need to get serious about SMEs: economist

    Government and banks need to get serious about SMEs: economist

    Concerns over how IDC plans to channel money to SMMEs

    Concerns over how IDC plans to channel money to SMMEs

    Financing remains an issue for women entrepreneurs

    Financing remains an issue for women entrepreneurs

    IDC plans to bolster financial support for SMEs

    IDC plans to bolster financial support for SMEs

    Tips for starting your business

    Green energy companies need more support: coalition

    Sefa to investigate money paid to ghost beneficiaries

    Sefa to investigate money paid to ghost beneficiaries

    MPs hear shocking allegations of Sefa dodgy deals

    MPs hear shocking allegations of Sefa dodgy deals

  • Tourism

    Hospitality SMMEs stimulates local economies

    Massive IDC backlog a setback for tourism enterprises

    Massive IDC backlog a setback for tourism enterprises

    Bosses need to understand employees’ realities

    SMMEs to benefit from transformation in tourism dept

    Guest house owner encourages residents to tour locally

    Guest house owner encourages residents to tour locally

    SMMEs must be compliant to access opportunities

    SMMEs must be compliant to access opportunities

    DTIC relaunches programme to boost localisation

    Home baker turns to vegan treats during Covid-19

    Tladi Farm thrives on community support

    Tourism businesses are positive despite challenges, report shows

    Tourism business owner calls on government to pull up its socks

    Tourism business owner calls on government to pull up its socks

    SATSA accuses government of failing the tourism sector

  • Advertising
No Result
View All Result
Vutivi
No Result
View All Result

Researcher warns that support for tourism sector will decimate SMMEs

The sector is hanging by a thread

July 7, 2021
in Tourism
Reading Time: 3 mins read
A A
Home Tourism
Share on FacebookShare on TwitterShare via Email

While it could be argued that the South African tourism and hospitality sector has been hardest hit by the Covid-19 lockdown, what is even more devastating is the help it has received from the state, according to a researcher. As a result, the sector was hanging by a thread, said Institute for Economic Justice researcher Zimbali Mncube.

He told Vutivi News that if support was not ramped up, it was likely that most SMMEs in the sector would not survive. Mncube co-authored a policy brief titled: “Vulnerabilities for South Africa’s Covid-19 Third Wave”, which was released last week.

“Our work has shown that tourism is one of the hardest-hit sectors, and we have done an analysis of existing rescue plans to sectors, specifically the Tourism Relief Fund,” he said.

“When the fund was introduced, each business was supposed to receive R50,000, and many businesses were crying, asking when this fund would be released. The fact that only 4000 businesses are supported through the fund is shocking.”

Mncube said that accommodation recorded drastic drops in profit. It lost R15-billion in income between 2019 and 2020, which represented a profit decrease of over 60%. “This amount excludes restaurants, fast food outlets and taverns, covering lodges, B&Bs, self-catering establishments and guest houses and guest farms,” he said.

“The prospect of looking ahead five years is dependent on rescue measures in place, and there are currently no measures not only for business but for workers (as well),” he said. “The prospect of recovery is too early to speak of because businesses are suffering.

Will there be any small businesses to support in five years if businesses are suffering right now?” Mncube believed it was possible to strike a balance between saving lives and livelihoods in SMMEs in general. He said in other countries, SMMEs had been used to drive vaccination programmes.

“In a way, there has been no innovative strategy to ensure which sectors can help us tackle the vaccination programme,” the researcher said. “There is no conversation between government and affected businesses. The only communication is when lockdowns are imposed and vaccination drives are announced.”

Mncube said that in order to save sectors like tourism, the government needed to use grant funding.

“SMMEs play an important role, and measures that need to be put in place need to build resilience so that there is resilience among businesses to be able to weather the storm, and this speaks to helping small businesses with liquidity support,” he said.

“Most SMMEs have no savings to sustain them for a long time. Instead of using a loan scheme, we need to use mechanisms like grant funding, which is used in countries like Ireland, the United Kingdom and the United States of America, where businesses are incentivised to save workers.”

He said there needed to be long-term measures in place that ensured the training and upskilling of employees. Also, it must be ensured that SMMEs registered with the Unemployment Insurance Fund as many small businesses did not pay UIF, so, during a time of crises, staffers had no access to money, Mncube said.

Tags: Covid-19 and hospitalityCovid-19 and SMMEsCovid-19 and tourism
Previous Post

SMMEs welcome Mastercard survey which shows robust future ahead

Next Post

Boksburg farmer warns experience is essential

Related Posts

Hospitality SMMEs stimulates local economies

July 20, 2023
43
Massive IDC backlog a setback for tourism enterprises

Massive IDC backlog a setback for tourism enterprises

June 1, 2023
161
Bosses need to understand employees’ realities

SMMEs to benefit from transformation in tourism dept

April 20, 2023
109
Load More
Next Post

Boksburg farmer warns experience is essential

Acne drives pharmacologist to start her own skincare range

Digital app set to connect local farmers to markets and quality inspectors

FEATURED POST

Organisations unhappy with small business bill

Organisations unhappy with small business bill

November 30, 2023
4

Some changes to employment laws hurt SMME development: study

November 30, 2023
6
Journo starts catering business

Journo starts catering business

November 23, 2023
44

Additional funding available for some small businesses

November 23, 2023
74

EDITOR PICK'S

Organisations unhappy with small business bill

November 30, 2023
4

Some changes to employment laws hurt SMME development: study

November 30, 2023
6

Journo starts catering business

November 23, 2023
44

Additional funding available for some small businesses

November 23, 2023
74

Biggest concerns for South African SMMEs

November 23, 2023
20

Small gin brewer already on retailer’s shelves

November 25, 2023
64

No changes for black SMMEs on export permits

November 16, 2023
19

STAY CONNECTED

    Vutivi is a digital business news platform that will serve the Small Medium Micro Enterprises in the form of writing stories that will be informative about their sector. We pledge to deliver a commercially sustainable, world-class digital financial and business news service that is a must-read while being responsive to readership needs and tailor-making packages for SMMEs.

    Categories

    • Agriculture
    • Analysis
    • Business
    • Finance
    • Innovation
    • Tourism

    Get in Touch

    Email

    news@vutivibusiness.co.za

    © 2022 Vutivi. All rights reserved. Website by AIPX Atelier

    Advertise / Privacy Policy / Contact

    No Result
    View All Result
    • Home

    © 2022 Vutivi // Website by AIPX Atelier.