Cape Talk
Posted on 9 April 2020 by Natasha Dinham
COVID-19

How investors can support small businesses through the COVID-19 lockdown

The Bertha Centre’s Natasha Dinham spoke with Kieno Kammies at Cape Talk, about how investors can help small businesses through these challenging times.


The government has taken bold and admirable steps in providing financial support for small companies, but we’ll need all hands on deck to ensure small businesses make it through the COVID-19 crisis. The Bertha Centre’s Natasha Dinham spoke with Kieno Kammies at Cape Talk, about how investors can help small businesses through these challenging times.

Listen to the full interview here

Q: What are some of the things small businesses need to bear in mind when it comes to potentially surviving COVID-19?

A: This is such a critical time for businesses but it’s also an important time for the economy and society as a whole. We know that small businesses are the backbone of the economy. They’re creating jobs and empowering households and communities. What they need to focus on is how to get through the next three months, as overheads are high and cash flow is low. We’ve seen some businesses pivoting — you’ll have noticed some of your local food providers are now delivering, but overall it really is a tough time. The work we’re doing at the moment is looking at how businesses can engage with their investors to open up this conversation, because ultimately their approach over the next few months is going to determine whether or not they survive.

Q: Should businesses be looking at diversifying their income streams?

A: Absolutely. There’s never been a better time to pivot, and we are fortunate that we live in the age of technology where we have the resources and tools available to help us do that. But businesses really need to be focusing on their overall business model right now in any way they can, and investors play a key role in this. For a lot of businesses, pivoting completely at this point is just not an option. There’s a certain amount of innovation that they can use, but they are also going to need support from the people who are providing them finance.

Q: What should investors be doing to help small businesses?

A: There are lots of tools for financial providers to enable them to help businesses get through this time, both in terms of the finance they’re providing but also in terms of the non-financial resources they have. These tools can be deployed to help connect businesses to sources of funding that are available, to other networks and markets that they perhaps hadn’t thought of, and to mentor them through this time — bringing in an external voice that provides resources that businesses otherwise wouldn’t have access to.

But picking the right investor is critical. At a time like this, if you’re looking for new funding, having good alignment up front is crucial. Businesses should particularly look at what investors can provide beyond just financial support. What we’ve seen some investors do during the COVID-19 crisis is walk their portfolio companies through the process of applying for some of the government and other private resources that are available. It’s fantastic that government has made funding available, but if you’re a small business, it’s a minefield of information. It can be really overwhelming. While this may seem like a very small thing that investors are doing, just walking companies through that process, this alone has enormous value for small businesses.

Q: Isn’t this something all service providers, particularly banks, should be offering? Wouldn’t it be in their interest to help the businesses on their books to innovate and leverage the huge network of people that bank with them?

A: At the end of the day, big corporates have a lot more resources than small businesses that they can tap into. They have innovation departments for instance, that can help companies innovate and pivot, because at this point, time really is of the essence. There aren’t long lead times; businesses have to move rapidly. Investors have the power to provide support on the non-financial side, and if you combine this with a bridging loan or a payment holiday, that’s an incredibly powerful solution.

Q: At UCT there’s a big drive toward design thinking. What role does that play in helping businesses to come up with innovative solutions at this time?

A: That’s the key thing. Solutions cannot be one-size-fits-all, especially when it comes to small businesses and innovating. This is why, at the GSB, we rely a lot on design thinking methodology, because it has to be bespoke. It has to be targeted to that particular business’s needs.

But this does present a challenge. On the one hand, solutions have to be quick, but on the other hand, they have to set businesses up for not just the lockdown period, but for the next three to six months, and potentially even the next three years. As we go along, we are realising this is not going to be over any time soon. So although solutions need to be found quickly to relieve that cash flow in the short-term, they also need to be sustainable solutions that can run over the long term.


This is an edited transcript of an interview which was aired on Cape Talk on 6 April 2020


MORE ON COVID-19

Breaking point for South Africa’s youth
COVID-19

Breaking point for South Africa’s youth

COVID-19 has exacerbated the pressures on the mental health of young people; we have to intervene now if we are to avert a national disaster.

Read Article
Posted on 11 October 2021 by UCT GSB Press Office
John Luiz - epidemic media
COVID-19

Q&A with John Luiz on the future of globalisation

The extraordinary spread of the Covid-19 virus over the past year has highlighted various vulnerabilities associated with globalisation. We asked the UCT GSB's Prof John Luiz for his views on the future of this model.

Read Article
Posted on 25 January 2021 by John Luiz
Cape Talk
COVID-19

Dr Beverly Shrand chats to Kieno Kammies about a new CEMS report on leadership

A new report released today by the CEMS Global Alliance in Management Education shares insights and recommendations for business leaders, educators and young professionals for 2021 and beyond.

Read Article
Posted on 19 January 2021 by Beverly Shrand
Advancing tech - media
COVID-19

As COVID-19 gets more people working from home, cybercriminals zoom in

The COVID-19 pandemic is accelerating digital trends to change our very notions of work and office. This presents both opportunities and threats - particularly when it comes to cybersecurity.

Read Article
Posted on 25 September 2020 by Sharron McPherson
latest update from uct - Media
COVID-19

Latest updates from UCT

UCT is taking the possible threat of infection in our community extremely seriously. This page will be updated regularly with the latest information relating to COVID-19.

Read Article
Posted on 1 July 2020 by UCT GSB Press Office
Bertha survey SA youth - Media
COVID-19

SA’s youth hit hard by COVID-19

A survey conducted with young South Africans has revealed that many have had to borrow money to survive as a result of COVID-19, with a significant number plunged deeper into unemployment.

Read Article
Posted on 25 June 2020 by UCT GSB Press Office
WHAT’S BREWING DURING LOCKDOWN? - Media
COVID-19

What’s Brewing During Lockdown?

The South African craft beer market could be very different post lockdown.

Read Article
Posted on 25 May 2020 by UCT GSB Press Office
WILL COVID-19 BE THE CATALYST - media media
COVID-19

Will COVID-19 be the catalyst for the most devastating economic crisis of our time?

COVID-19 erupted in a macroeconomic environment that is a rich cocktail of economic contraction and contradiction. History teaches us that if we don’t pay attention to this — we risk underestimating the magnitude of the crisis that we face.

Read Article
Posted on 19 May 2020 by Barry Standish
kw new - media
COVID-19

Mastering the art of the virtual meeting

Getting the most out of virtual meetings demands more than a mastery of new tech, it’s about creating human connections across the digital ether.

Read Article
Posted on 11 May 2020 by Kumeshnee West
penish african man - media
COVID-19

Alumni webinar series: Five implications of the coronavirus for business leaders

Professor Ralph Hamann hosted a webinar exploring five long-term implications for business leaders due to COVID-19.

Read Article
Posted on 8 May 2020 by Ralph Hamann
barry standish - media
COVID-19

Webinar: The broader economic implications of COVID-19

Former UCT GSB economist, Barry Standish, hosted a free webinar in April for UCT GSB alumni on the broader financial and economic implications of COVID-19.

Read Article
Posted on 7 May 2020 by UCT GSB Press Office
Virtual meetings Medi
COVID-19

3 Tips for managing and motivating teams during COVID-19

The current crisis is offering many businesses in South Africa an opportunity to rethink how they manage and motivate their teams for the better.

Read Article
Posted on 6 May 2020 by Christina Opperman-Swart
How COVID-19 will permanently change - Media
COVID-19

How COVID-19 will permanently change the way we work

What trends will be accelerated, what will die away, and what new trends will appear? And what’s the most important thing organisations need to do now to prepare? We ask three people in the know.

Read Article
Posted on 6 May 2020 by UCT GSB Press Office
Why downgrading countries - Media
COVID-19

Coronavirus - an excuse to downgrade African countries deep into junk

A number of rating agencies have downgraded emerging market economies during the COVID-19 pandemic. Their actions have raised the question: why do so during a crisis?

Read Article
Posted on 3 May 2020 by Misheck Mutize
inequality - Media
COVID-19

This Freedom Day let’s commit to the change that enhances the freedom for all

On Freedom Day this year, the national lockdown and response to the COVID-19 pandemic, are holding up a mirror to society and forcing us to confront our faults and weaknesses.

Read Article
Posted on 28 April 2020 by Athol Williams
Mignon business aglity - Media
COVID-19

Strategic agility is key to business survival during this crisis — and beyond

As the COVID-19 pandemic advances, some companies have been able to change strategic focus to stay afloat in new and innovative ways. Here’s what their actions have to teach the rest of us.

Read Article
Posted on 24 April 2020 by Mignon Reyneke
Cyril board - Media
COVID-19

Trust in times of crisis: Why we need to trust our governments

The Edelman Trust Barometer released in January, exposed some rather discouraging truths, not only about the global state of the world, but also about South Africa.

Read Article
Posted on 22 April 2020 by Badri Zolfaghari
BOX THINKING - Media
COVID-19

Video interview - Out of the box thinking can help small businesses weather the storm

Dr Tim London chats to the Bertha Centre's Natasha Dinham, about a number of measures investors can take to ameliorate the effects of the COVID -19 crisis.

Read Article
Posted on 22 April 2020 by UCT GSB Press Office
How can small bus - MEDIA
COVID-19

Video interview - How can Govt better support small businesses during COVID-19?

Dr Tim London interviewed UCT students and researchers, Zaakir Essa and Georgina Borros from Phaphama on their study of a particular group of small businesses that are facing real threats from the impacts of COVID-19.

Read Article
Posted on 22 April 2020 by UCT GSB Press Office
life after lockdown - Media
COVID-19

Life after lockdown: Welcome to physical distancing and the contactless economy

When lockdown ends, it is likely that people are going to want to have safe spaces to meet up in and have fun. What can visitor attractions do now to make sure they are ready?

Read Article
Posted on 14 April 2020 by Sabine Lehmann
Mehluli_profile - Media
COVID-19

Strong leadership in times of crisis

Taking the reins of Zimbabwe’s largest building society during the Covid-19 pandemic has certainly been challenging, but GSB alumnus Mehluli Mpofu believes that his leadership philosophy built on team work and problem-solving will help steer the institution he leads through these trying times.

Read Article
Posted on 14 April 2020 by UCT GSB Press Office
War lost - Media
COVID-19

We are not at war with COVID-19

The rhetoric of war, and the unfortunate term ‘lockdown’ are even more misplaced in this crisis because it takes people to change a society, not simply putting stringent rules or regulations in place and enforcing them through the barrel of a gun.

Read Article
Posted on 14 April 2020 by Camaren Peter
HOW ARE COMPANIES ADAPTING - Media
COVID-19

Video interview - How are companies adapting their businesses to cope with COVID-19?

Dr Tim London spoke with Mignon Reyneke, an associate professor of Digital Marketing at the UCT GSB, about some of the companies that are trying to deal with the fallout of COVID-19 by doing things differently.

Read Article
Posted on 14 April 2020 by UCT GSB Press Office
Health Needle - Media
COVID-19

We need to mobilise communities in the global fight against coronavirus

While scientists and big pharma work on vaccines, innovations and solutions developed at the community level will be key to slowing the spread of the virus.

Read Article
Posted on 14 April 2020 by Katusha De Villiers
wet market - Media
COVID-19

COVID-19's top five long-term implications for business leaders

The spread of the pandemic has brought to the fore the need for business leaders to recognise the crucial interdependencies between business and its environmental, social, and governance context.

Read Article
Posted on 8 April 2020 by Ralph Hamann
everything sean goseel - MEDIA
COVID-19

Everything has changed: The world and South Africa's economy after COVID-19

The Covid-19 pandemic has changed the world: It is possible that it will take years for the global economy to recover, which will have dire implications for South Africa’s economic prospects.

Read Article
Posted on 6 April 2020 by UCT GSB Press Office
Small business - Media
COVID-19

How investors can support small businesses through the COVID-19 lockdown

For a small business, twenty-one days may be as long as it takes to close its doors forever. But investors might just have the tools to make sure that doesn’t happen.

Read Article
Posted on 2 April 2020 by Natasha Dinham
Expressions of Exclusion - Media
COVID-19

Human Rights in the South African Workplace: From Fighting Apartheid to Tackling Exclusion

South African organisations have made great strides in achieving more diversity and transformation. However, too many people still feel excluded in workplaces.

Read Article
Posted on 31 March 2020 by Kurt April
Resources - Media
COVID-19

Resources for information related to COVID-19

COVID-19 ("Coronavirus") Information and Resources

Read Article
Posted on 27 March 2020 by UCT GSB Press Office
Kurt April Corono - Media
COVID-19

Great leaders are made in times of crises; who will step up?

The COVID-19 crisis is giving leaders everywhere a test of unimaginable proportions. Right now we need calm, agile and decisive people at the helm across all sectors to ensure that we survive and go on to thrive again - and President Ramaphosa is setting a good example.

Read Article
Posted on 26 March 2020 by Kurt April
social echeosion - Media
COVID-19

Could the Covid-19 crisis offer us a window of opportunity to build social cohesion?

A national disaster declared on top of a technical recession and a standoff between the ANC and its alliance partners means that we can expect the SA economy will remain in a downward cycle for the foreseeable future — our only hope lies in building social cohesion in the face of crisis.

Read Article
Posted on 25 March 2020 by Sean Gossel
globalisation- Media
COVID-19

The globalisation of an epidemic and the epidemic of globalisation

COVID-19 respects no borders and has laid bare some of the vulnerabilities of globalisation. Going forward, we need to look more deeply at how to build a world that protects global supply chains more effectively — and the all people that depend upon them.

Read Article
Posted on 25 March 2020 by John Luiz
Quad Area - Media
COVID-19

Updates for Staff

The health, safety, and well-being of the UCT GSB community is our top priority. This page will be regularly updated to keep staff informed.

Read Article
Posted on 24 March 2020 by UCT GSB Press Office
COVID-19 could be a chance to rethink - Media
COVID-19

COVID-19 could be a chance to rethink, disrupt and plan for the future of your business

While COVID-19 is expected to wreak havoc on the South African economy, the full extent of this is yet to be determined. But even in crisis, there are always opportunities for innovation.

Read Article
Posted on 23 March 2020 by Mikael Samuelsson
Remote Working - Media
COVID-19

COVID-19 has made remote working the new normal - why this might be good for productivity

SA lags behind the working-from-home curve, but the combination of coronavirus and loadshedding may be changing that. Fortunately, studies show it can improve productivity and protect the bottom line.

Read Article
Posted on 19 March 2020 by Sharron McPherson
Cape Talk logo - Media
COVID-19

Q&A with Tim London on the impact of COVID-19 on education

As the coronavirus continues to play a prominent role in our lives, we are forced to do things differently. With schools closing this week, this is making online learning very much a reality for the immediate future. But is South Africa ready for this?

Read Article
Posted on 18 March 2020 by Tim London