Small businesses bear the brunt of violent unrest in SA
On top of a fragile economy, small businesses have had many challenges thrown at them in the recent while. We’ve had the Covid-19 pandemic and subsequent restrictions on the economy. And last week businesses were affected by the worst violence in post-Apartheid South Africa. Sonto Pooe, Founder of NativeChild joins CNBC Africa for more.
Wed, 21 Jul 2021 16:04:47 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Impact of Recent Unrest on NativeChild: Disruption in stock availability and delivery services due to looting of stores and warehouses.
- Impact of COVID-19 on Business Performance: Initial surge in online orders followed by challenges such as raw material shortages and logistical issues.
- Complexities of Localizing Production: Balancing opportunities and limitations of sourcing raw materials locally in response to the government's localization drive.
Small businesses in South Africa have been grappling with a series of challenges, from the COVID-19 pandemic to the recent violent unrest that shook the country. Sonto Pooe, the founder of NativeChild, shared her firsthand experience of the impact of these crises on her business in a recent interview with CNBC Africa. The conversation shed light on the struggles faced by small businesses in the face of adversity. With a fragile economy and relentless challenges, the resilience of small enterprises is put to the test.
Sonto Pooe highlighted the significant setbacks her business encountered during the recent unrest in South Africa. She described how the stores that held their stock were looted, causing a ripple effect on their operations. The disruption extended to online orders, with warehouses being targeted and deliveries halted. Despite these challenges, the focus remains on serving customers and overcoming the obstacles that lie ahead.
The conversation also delved into the impact of the COVID-19 pandemic on NativeChild. Pooe shared that while the pandemic initially led to a surge in online orders as more customers turned to e-commerce, it also brought about challenges such as raw material shortages and logistical issues. The shift from in-store to online shopping posed both opportunities and difficulties for the business, requiring adaptability and perseverance.
In addressing the localization drive announced by the South African government as part of its reconstruction and recovery plan, Pooe discussed the complexities of sourcing raw materials locally. While some products could potentially be sourced within the country, certain natural ingredients are climate-dependent and not easily replicable. The localization drive presents both opportunities and limitations for businesses like NativeChild, calling for a nuanced approach to navigating the challenges of production and supply chain management.
As small businesses continue to navigate a turbulent economic landscape, the resilience and adaptability demonstrated by entrepreneurs like Sonto Pooe underscore the importance of community support and strategic planning. The conversation with Pooe offered valuable insights into the experiences of small businesses in South Africa, highlighting the need for innovation and collaboration in overcoming adversity.