Sustainable SMMEs crucial to help boost unemployment

Small, medium, and micro enterprises (SMMEs) are most vulnerable to business closure yet most beneficial to solving the unemployment problem in our country. The National Development Plan (NDP) 2030 states that, 90% of all jobs in South Africa will be created in small and expanding firms by 2030. According to StatsSA, the official unemployment rate for Q1 2024 stood at 32.9%, successful SMMEs are crucial to both improving unemployment and growing the economy.

SMMEs by their very nature tend to be agile but they are also incredibly vulnerable to the impact of business interruption. Anything from theft and fire to cybercrime or unrest can be fatal to an enterprise that is not prepared. Insurance cover is therefore imperative to ensure the sustainability of SMMEs so that they can bolster much need job creation.

Mitigating your business’s risks in the current landscape means understanding what risks affect your particular business and what insurance solutions are available and appropriate to protect it. For instance, a security consultancy will probably have little need for drought insurance but would really benefit from cyber insurance.

Here’s how to ensure that the premiums you pay effectively meet your needs, so that you can do the important work of job creation:

1. Flexible Payment Options: SMMEs often operate on tight budgets, where cash flow is everything. Look for flexible premium payment options that account for your business needs.

1. Risk Management Support and Resources:  Partner with a company that offers risk management support and resources. This can include conducting risk assessments, providing safety training, or offering guidance on how to minimise potential risks within the business operations. By proactively helping you identify and mitigate risks, this ensures you have accurate and up to date information and you know exactly who to reach out to in the case of a claim.

1. Efficient Claims Processing: Timely and efficient claims processing is crucial for any small business that needs to quickly recover from unexpected losses. Insurance exists for the purpose of providing support in the event of an accident. Partner with a company that ensures that your claims are processed and handled timeously.

As South Africa strives to create jobs and foster economic growth, ensuring the success of your business with effective risk management and the correct insurance becomes increasingly crucial.