South Africa and most of the world has entered into a global recession in the wake of the COVID-19 outbreak and subsequent lockdown. Entrepreneurs seeking to start businesses during this time of dwindling economic growth and business uncertainty will face many challenges and will have to explore workable business ideas.
Acquiring capital to start a new venture could come with its own challenges and several funding institutions have adopted risk-averse stances. Finding your first, crucial customers will aid in bringing the business to its feet, but this will also prove more challenging as consumers tighten their belts.
However, all that being said, there are still numerous opportunities for SMEs during times of crisis and recession, with certain industries weathering this period of economic downturn.
Security
Be it real-world or cybersecurity, private and commercial asset owners often become risk-averse during these times of economic recession and uncertainty. While it’s common for most sectors of business to decrease during a recession, security is one industry which tends to see increased interest.
Many retailers have been forced to shut down, most office spaces are closed and many other industries headquarters lights have been turned off. Many business owners fear that their equipment and offices are at risk as they’ve been forced to shut down and employ work-from-home tactics where possible.
The advent of the private security sector in South Africa is a clear indicator that the industry is an excellent space to invest in. Despite the prevalent underperformance of the SA economy during the past few years, private security has become an R45 billion industry with a growth rate of 15% per annum, putting it amongst the largest in the world.
South Africa has already seen an abundant increase in the number of start-ups in this sector, and providing original tech-savvy resolutions and more effective support services in this area could prove lucrative.
Funeral Services
The calculated value of the funeral sector in South Africa ranges between R7.5 billion and R10 billion. Of course, this might sound morbid, but businesses which offer services related to death, including funerals, cremation, burial and memorials are often recession-proof. Despite the prohibition of gatherings during the lockdown, funeral services are permitted for small gatherings of mourning.
Business Consultation
As several businesses have been operating remotely, this is an opportune time to explore providing new expertise.
Several processes have been automated and companies are looking to new methods and business models to align with the adjustments of lockdown. Many businesses are offering marketing education, IT advice and many other forms of consultation.
Online Education.
Online education is a fast-growing market in South Africa and the world and has been especially bolstered due to the lockdown laws in place. Several small businesses in many industries have started offering online courses in a myriad of fields of study, including finance, food preparation, writing, copywriting and many other forms of education.
Affiliate marketing
One of the most reliable ways to earn money online is affiliate marketing. Affiliate marketing is the method of earning commissions via the promotion of a company’s or other people’s products.
With this sort of business, you don’t have to produce any products yourself, what you need is a website to sell other people’s products and receive a commission for each sale you make.
Food and essential service deliveries.
Now that stage 4 is active in South Africa, several restaurants have started offering food delivery options. As citizens are advised to stay home because of the lockdown they still need access to essentials like food and hygiene supplies among others. The current lockdown is an excellent time to join the ranks of professional delivery services. Ensure that you’re transparent as to your safety precautions and consider offering contactless delivery, whereby your goods can be left at your door.
Conclusion
These are just a handful of opportunities for those seeking new revenue streams. Take the time to research what is available and viable during this time, and what you’ll be best equipped to provide.