How Technology is Helping Small Businesses to Grow in South Africa

South African economy had been in a precarious position after the pandemic that caused widespread healthcare and financial distress. Small businesses were the hardest hit entities in the country, with plummeting sales and growing financial deficits. However, entrepreneurs in the sector maintained their resilience and have been working hard to make a quick recovery. They have been able to sustain their ventures with the adoption of technology that has allowed them to gain momentum.

If you have been planning to purchase a business for sale in South Africa, you need to be aware of the recent technological advancements that can help you to thrive in unprecedented circumstances. So, here is a list of the tech solutions that can make you successful in the current economic conditions.

Computer Systems and Software

Many SMEs in the country lack skilled professionals and talent that can help in maintaining the efficiency of their ventures. The scarcity of capable human resources has contributed to the failure of many businesses. The advent of automation has brought a ray of hope for these entities. Every business function ranging from accounting, project management, payroll processing, and inventory management to invoicing and tax planning needs an expert.

However, most SMEs do not have the capital to hire so many professionals and the absence of qualified candidates makes things worse. Thus, relying on computer systems that automate these time-consuming tasks have proven to be a boon for struggling entrepreneurs. These systems have also helped them to work remotely during the pandemic without hampering the operations. Consequently, business owners have realised the significance of this software and are leveraging them to enhance productivity.

Transitioning to Online Sales

E-commerce has been growing at a fast pace, and the pandemic has provided the much-needed impetus to the sector. Many physical stores have upgraded to online shops to reach customers who are confined in their homes due to COVID-19. The confidence of buyers is improving in making online payments and they are recognising the convenience of getting contactless deliveries.

Small businesses have a lot to gain from this boom as they can market their products and services online, which requires a lower marketing budget. It also helps them to gain new customers and reach new markets by transcending the restrictions of local operations. However, they need to build infrastructure for the same and keep track of the inventory and deliveries to keep the buyers happy. If they are able to accomplish this, they can prosper significantly.

Point of Sale System

The use of point-of-sale systems has allowed SMEs to reduce the fees that they have to pay as well as accept card payments. The technology helps businesses to track a large number of transactions that take place in a retail setup. It speeds up the time taken to complete cashless transactions and helps to maintain up to date records for the ease of accounting and tax planning.

The sales data obtained from the system determines customer buying behaviour and aids in forecasting sales. It can also help in managing discount offers and customer loyalty programs. Thus, using a POS is the need of the hour for retail businesses.

Implementation of Cybersecurity

Data thefts and ransomware attacks have been rising in the country because most small businesses have not been paying attention to cybersecurity. The adoption of digital business models has made it necessary for entrepreneurs to look into this as the weak cyber laws in the country have emboldened hackers. The biggest data leak that took place in South Africa in 2020 is an example of the syndicate that is working online to attack vulnerable businesses.

Therefore, it is vital to secure classified information with the help of cybersecurity measures, data backup, monitoring remote accessing of data and offering access to a few trusted members in the company.

Website Design and Development

With consumers spending more and more time online, it has become imperative to own a website. It is needed to create an online presence and offer all the information needed to make the customers take note of your products and services. Domain and hosting have become other important digital assets that a business needs to attract more customers and market itself with minimum expenditure. It is also needed to build a trustworthy business that can grab attention.

A business website can be used to create valuable and informative content that helps in getting a higher ranking on search engines and gaining popularity online. It helps the venture to create a dominating presence that helps in standing apart from competitors.

Digital Transformation

Businesses are now adapting to the digital era and are using the internet to bolster their position. Besides e-commerce, fintech, health tech, and media and entertainment are leading the way in the digital transformation of the commercial sector. The rapid urbanisation of the country and growth in population are increasing the demand for mobile internet and broadband services.

The number of professionals working in the tech industry is also increasing and there has been a significant investment in the sector. The government is also making efforts to improve the infrastructure for better penetration of high-speed internet in the country. It has been estimated that the digital economy of Africa will reach $180 billion in the future. South Africa has better networks in the entire continent and the reduced prices of telecommunication have further amplified the progress of digital transformation.

Social Media Marketing

More than 90% of the big organisations in the country use social networks to communicate and connect with their target audience. The digital platforms have opened up another touchpoint that has allowed marketers to address customer complaints, influence prospective buyers, retain existing customers, and find more clients. The cost-effective marketing strategy has helped several businesses to reduce their advertising spend and focus on the needs of the customers.

Several South African brands are now using Tik Tok videos to lure buyers and the pandemic has further boosted the use of the medium. It helps in gathering insightful data related to consumers and aids in developing better marketing strategies that are highly targeted and less wasteful.

Endnote

With the economy on the path to recovery, it has become evident that technology is paving the way for development. Thus, if you are planning to purchase a business for sale in South Africa, make sure that you have access to the technical assets mentioned above to stay ahead of the competition.