Small businesses are vital to South Africa’s motor body repair sector, contributing to economic growth and job creation. However, they are facing challenges such as delayed payments and unfair practices. Juan Hanekom from Sambra emphasizes the need for improved protective measures and ethical procurement to support these enterprises and bolster employment in a high-unemployment environment.
The motor body repair (MBR) sector in South Africa is significantly bolstered by small businesses, which are essential for economic development and job creation. However, these enterprises now face multiple challenges that threaten their viability. Juan Hanekom, national director of the South African Motor Body Repairers’ Association (Sambra), has urged for improved protective measures for small businesses, emphasizing ethical procurement practices and streamlined payment processes to enhance their growth.
Small, medium, and micro enterprises (SMMEs) are crucial to the automotive industry in South Africa, contributing innovative solutions and creating employment opportunities. Current statistics from MIBCO indicate that 74.29% of the 2,030 registered MBR employers have fewer than ten employees, while 60.79% operate with one to five staff members. Hanekom highlights their significance in job creation and in meeting national production and localization objectives, stating that these businesses help improve competitiveness.
Despite their critical role, small businesses face significant difficulties due to delayed payments, restrictive clauses, and unfair rebate terms imposed by larger industry entities. Such issues hinder cash flow, stifle growth, and can even result in closures, according to Hanekom. He asserts the necessity of enforcing ethical procurement and equitable payment practices to alleviate the strains on small repairers.
“The sustainability of the MBR sector depends on fair business practices. Small enterprises cannot continue to bear the financial strain of delayed payments or prejudicial rebate clauses,” asserts Hanekom. He further notes that as vehicle technology becomes increasingly complex, the burden of compliance signals a double-edged sword for these small businesses, challenging their profit margins and overall operational capacity.
Hanekom also connects the survival and growth of small businesses in the MBR sector with broader employment issues in South Africa, where the unemployment rate is at a concerning 31.9%, with youth unemployment reaching 44.6% among individuals aged 15 to 34. “Policies that support small businesses can help drive employment opportunities, particularly in a country grappling with high joblessness,” he states, emphasizing the urgent need for intervention to retain qualified artisans in the industry.
In summary, small businesses in South Africa’s motor body repair sector are critical for economic growth and job creation but currently face significant challenges that threaten their sustainability. Juan Hanekom from Sambra calls for enhanced protection through better procurement and payment practices. Addressing these issues is essential not only for small enterprises but also for alleviating the broader unemployment crisis in the country. The success of these businesses will contribute to the overall health of the automotive industry and the economy at large.
Original Source: www.zawya.com
