The coronavirus pandemic might have sounded the death knell for large corporations and forced the closure of well-known institutions, but it has created opportunities for SMEs’ survival and growth.
In a survey done by business incubator Fetola in July, at least 60% of businesses polled transitioned to capitalise on the change in market demands. For these SMEs, COVID has fundamentally changed the way they do business.
One such business is Lift-Off Visuals Media, a multimedia company in Durban. Business ground to a halt during level 5 lockdown because all events were cancelled as gatherings were banned. In May, owner Sikhumbulile Ndlovu opened a photography studio and focused on graduates who could not attend their graduation because of lockdown but who wanted to preserve the memory.
The coronavirus pandemic also gave Lift-Off Visuals Media an opportunity to connect people and entertain them using technology. The company now provides multi-camera, streaming services for online concerts, conferences, virtual graduations, cooking shows and even funerals. He was also involved in the streaming of the virtual Durban July, a premier event on the racing calendar.
Sikhumbulile admits the transition has not been without its challenges: “There was a time during lockdown when I was very stressed, I didn’t know what to do. At this point, my business mentor, Robynne Erwin became a source of wisdom, support and guidance and she helped me find a new direction for my business.”
Businessman Thokozani Potgieter is accustomed to reinventing himself and his window cleaning business in times of crisis: first being scammed, then drought, and now the COVID-19 pandemic. Thokozani’s company ClearView SA focuses on cleaning windows for commercial buildings and residences in Newcastle, a small town in KwaZulu-Natal.
He borrowed R800 from his sister to start his business after he was scammed out of his start-up capital. Undeterred, Thokozani used the loan to buy a telescopic pole and hire a ladder for his first commercial window cleaning project at Newcastle Corner Mall.
But he had some tough times: “I had to eat food from the bin outside my local grocery store just to make ends meet and I walked 10km with my ladder to complete my jobs because I didn’t want to cancel on my clients.”
It was because of this tumultuous journey that Thokozani was motivated to find ways to innovate during lockdown. “We saw a need to provide disinfecting and sanitising services to businesses anxious to reopen as well as people who contracted COVID-19 and wanted their homes and cars sanitised. So, I trained, obtained my certification and bought a new machine that helps me give my clients peace of mind.”
This new service means he puts his life at risk daily. He also has the added responsibility of safely disposing of his protective clothing after every job. “I have to be hosed down and I burn my clothes. I cannot just throw it into the bin because a homeless person will find it and wear it.”
Thokozani has been able to keep his business open and provide employment because he saw opportunity in a crisis. He has moved from window cleaning to becoming an infection prevention expert.
Business development practitioner Anton Ressel is impressed at how quickly SMEs have adapted: “Those who have been denied their traditional income streams because of the lockdown have courageously made a plan to keep the wheels turning. This speaks to our entrepreneurial spirit as a nation and is to be commended, especially if this pivot is aligned to the original core business.”
40% of SMEs polled by Fetola were open for the full duration of lockdown. One such business was Afrimealz, a Western Cape business owned by Lucien Thomas. Lucien is a food technologist who developed a range of nutritious, soy-based meals for feeding schemes and old-age homes.
During lockdown, he found new ways to generate an income – consulting with big companies on food safety. He sets up and monitors food safety systems, a vital service because the spotlight is now on safety. Lucien provides valuable advice to companies on risk assessment, social distancing and best hygiene practices, which are all part of food safety.
“COVID has created alternate opportunities for my business. I am also building up my product portfolio with new customers. I developed a spice mix for a company whose regular supplier could not meet the demand and because people have now become so aware of the need to be healthy, I have been working on a new vegan food range.
“I love new challenges and I want to take advantage of every new opportunity. If you want something, you have to go out and get it – no one is going to give it to you,” said Lucien.
This is a sentiment echoed by Basil Phupha, a 29-year-old self-starter who owns his own agricultural and agro-processing manufacturing company, Basils Business Opportunities (BBO).
The COVID-19 pandemic hit BBO hard as equipment manufacturing was not considered an essential service under Level 1 regulations, causing Phupha to shut down operations and leave projects in limbo. The closed borders also meant he could not supply his clients in Botswana, Namibia, Lesotho and Eswatini.
“My company still needed to be compliant, however, so I had to make sure that I paid my compensation fund even though there was no cash flow. It was a huge problem as we had months with no income.”
A few weeks into lockdown, Basil designed a range of foot-operated hand sanitiser stands, a common sight in stores across the country. When BBO was allowed to open again under Level 3 he started manufacturing the stands. “I was relieved. The hand sanitiser stands gave me a competitive edge and I was able to complete outstanding projects,” said Basil.
Fetola CEO Catherine Wijnberg is positive about SMEs’ ability to shift to new ways of doing business: “While no one knows what the true impact of COVID-19 will be, perhaps this crisis will kick the country into action and into a new future that will be good for small business too, for entrepreneurs rise in rapidly changing times.”
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