Small Business Friday™ gains momentum

Ingrid Johnson, Managing Executive of Nedbank Retail and Business Banking and Mojalefa Mohoto - Chief Director of Enterprise, DTI.

South Africa is getting ready to celebrate Small Business Friday™ on 6 September, a symbolic day for everyone – from consumers to large corporates – to support small businesses. Recognising the importance of the small-business sector and the need to eleva

‘This year we are once again encouraging the people of South Africa to stand behind our country’s small businesses and the hardworking individuals who make them what they are, and to support a small business actively in their community on the day’, says Ingrid Johnson, Managing Executive of Nedbank Retail and Business Banking.

The small-business sector is considered the engine for economic growth in South Africa as an estimated 2,8 million small and medium enterprises contribute between 52% and 57% of gross domestic product (GDP), providing approximately 61% of total employment.

‘Our ability to achieve sustainable economic growth is highly dependent on the success of our country’s small businesses. Starting a business is an avenue of independent wealth creation that is open to a broad and diverse part of the population – but to succeed these entrepreneurs need all the support we can give them, hence our call to Vote Small Business’, says Johnson.

For the consumer, this could simply mean shopping at a local small business, or promoting it to friends and colleagues. To this end the nation is requested to utilise social media platforms using #VoteSmallBusiness to spread the word. For larger business, supporting small business could be a matter of reviewing procurement practices, minimising red tape and ensuring prompt payment to their small business suppliers.

Of course, small-business owners also have their role to play: By actively participating in the day, they can drive awareness beyond Small Business Friday™, so that Vote Small Business becomes an everyday cause. To reward their efforts Nedbank launched a campaign for all its small-business merchants to register on SimplyBiz.co.za and claim their share of R1 000 000 based on card transactions processed through their device during November 2013.

Leading by example, Nedbank continues to invest in this segment and today announced the early findings of the Nedbank Small Business Index™, the first to provide a comprehensive and robust assessment of the challenges faced by small business. Nedbank also procured goods and services from 3 100 small and medium enterprises in 2012 to the total value of R2,8bn and is the first signatory to the NSBC Prompt Payment Code™, thereby making a public commitment to pay smaller businesses in line with clearly defined terms and within 30 days.

‘At Nedbank, we believe in a holistic approach that not only focuses on fulfilling the banking and funding needs of small businesses, but also ensures that they are sustainable. This is achieved by empowering the entrepreneurs through Banking and Beyond™ services, including the provision of practical advice and crucial skills. The It’s My Biz reality TV show, SimplyBiz resource portal, Business Accelerator Programme with Talk Radio 702 and 567 CapeTalk and our business seminars are examples of this,’ explains Sibongiseni Ngundze, Managing Executive of Nedbank Retail Relationship Banking.

‘And we constantly seek to innovate our banking solutions to ensure they talk to the real needs of a small business. Among these are the Nedbank PocketPOS™ mobile payment solution, our holistic eCommerce offering and a revolving credit card that caters for cashflow cycles, while rewarding the business owner through normal use.’

Small Business SaturdaySM, on which this initiative is modelled, was started by Nedbank’s partner American Express® in the US in 2010, and has grown into a national movement supported by millions of people every year.

Mike Anderson, founder and CEO of NSBC, comments: ‘We are excited to see a similar trend in South Africa. With the support of corporates such as Nedbank and consumers at large, Small Business Friday™ has the potential to make a real difference to this important sector of our economy.’

‘We are asking you to Vote Small Business – vote with your feet, heart and wallet. Always think of a small business in your community when planning to buy goods and services, not only on 6 September but every other day,’ concludes Johnson.