Expansion and growth are essential objectives for Small and Medium Enterprises (SMEs) navigating a dynamic market landscape. A streamlined approach to business operations fosters an environment conducive to seizing market opportunities and propelling SME growth.
Stats SA, 2022, SMEs make up over 90% of registered businesses in South Africa, employing more than half of the workforce and accounting for over a third of GDP. Effective business practices ensure entrepreneurs stay active in high-growth economic areas.
Post-COVID insights from McKinsey highlight the need for robust support for SMEs, crucial for economic recovery. Strategic partnerships, incubation opportunities, venture capital, mentorship, and sound business operations are key to achieving growth. Utilising technology such as artificial intelligence, ESG considerations, financial and asset management, and strong policies linked to the legislative environment further sustain scalability and cost reduction.
The Importance of Business Operations in SME Growth
Efficient operations boost productivity and maintain high standards of goods and services. For SMEs, keeping pace with market trends is critical to growth, and agile business operations are pivotal in responding to market demands and customer expectations.
A report by a 2024 World Economic Forum indicates that 67% of SMEs globally are struggling, with survival and expansion as the top priorities. Financial resources, access to capital, culture, talent acquisition and retention, and hostile policy environments are major challenges faced by SMEs.
Strategic planning, resilience, and anticipating legislative changes are components of effective business operations. SMEs must be adaptable, leveraging new technologies to remain agile and capitalize on growth opportunities. Sustainable business models could generate significant economic opportunities and employment by 2030, according to the Business and Sustainable Development Commission recently in 2024.
Efficient business operations allow SMEs to scale regionally or internationally, ensuring consistent quality and service standards. Operational excellence enhances financial management and risk mitigation, attracting investment and securing essential partnerships.
Old Mutual SMEgo: Your Partner in Operational Excellence
In conclusion, business operations are critical for sustainable SME growth and expansion. Old Mutual SMEgo offers a digitized platform to help SMEs integrate business operations across all touchpoints, supporting long-term growth objectives and risk management.
In July, Old Mutual SMEgo is running a programme that invests in SMEs: If your business is one of the first 500 SMEs that subscribe to the Premium Plus Plan in the month of July, you will receive R5000 cash back into your business. Use referral code “smegoprogramme”. Visit www.smego.co.za or download the SMEgo App. Terms and Conditions apply.
For Funding inquiries, call: 021 504 0844.
