SA SME Fund, BLSA and B4SA launch #PayIn30 campaign to assist SMEs
Access to working capital is key to the sustainability and growth of small and medium businesses (SMEs), especially in the current economic crisis which has been exacerbated by the Covid-19 pandemic.
Corporate South Africa recognises this, and we are proud that over 50 CEOs have signed up to #PayIn30, a campaign led by the SA SME Fund, BLSA and B4SA. These large corporates have committed to pay their SME suppliers in 30 days, helping alleviate the cash flow constraints of small businesses.
SMEs are an important job creator. However, during the last 6 months, it is estimated that over one million jobs have been lost among formal and informal SMEs. SME bankruptcies increased more than 50% since last year (from 4% to 6.5% in default), a number expected to reach >10% as credit extensions, payment holidays and tax relief comes to an end.
Thriving SMEs and innovative entrepreneurs are key to South Africa’s economic recovery strategy: we’re all in this together and need to do our part to help our economy grow. This is the time for ethical leadership. And this is why over 50 CEOs have committed to shorter payment terms for SMEs.
#PayIn30 is also supported by many business bodies, including Business Unity South Africa (BUSA), the Small Business Institute (SBI), the Black Business Council (BBC), the Minerals Council, and SACCI.
We would like to thank the companies who are already participating, and invite all other companies to sign up at firstname.lastname@example.org.