SME's - major external reason for failure
SME's - major external reason for failure
In South Africa, the one external reason that contributes to most SME business failures is non payment by clients.
Corporate South Africa and government are the two worst offenders!! If you have budgeted the funds, you have the funds available, then why not pay on a 30 day basis at worst, or COD at best.
The government spends billions on development capital to create new businesses, then promptly destroys thousands of businesses through non or very slow payment.
Corporates complain that doing business with SME's is so difficult because they just cannot get their act together. Well how can you when you customers never pay you on time. No business can function without working capital, and for SME's it is often sitting in their customers' bank accounts.
The result is a knock on effect as the SME paid late is also the SME who pays late. This culture in South African business is not very conducive to building businesses.
Rob Smorfitt
SMEs major external reason for failure - To learn more about this author, visit Dr. Rob Smorfitt's Website.
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SME's - major external reason for failure
In South Africa, the one external reason that contributes to most SME business failures is non payment by clients.
Corporate South Africa and government are the two worst offenders!! If you have budgeted the funds, you have the funds available, then why not pay on a 30 day basis at worst, or COD at best.
The government spends billions on development capital to create new businesses, then promptly destroys thousands of businesses through non or very slow payment.
Corporates complain that doing business with SME's is so difficult because they just cannot get their act together. Well how can you when you customers never pay you on time. No business can function without working capital, and for SME's it is often sitting in their customers' bank accounts.
The result is a knock on effect as the SME paid late is also the SME who pays late. This culture in South African business is not very conducive to building businesses.
Rob Smorfitt
SMEs major external reason for failure - To learn more about this author, visit Dr. Rob Smorfitt's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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