South Africa has an estimated 2.6 million small and medium enterprises (SMEs). These businesses make up 91% of formalised businesses, provide employment to about 60% of the labour force and total economic output accounts for roughly 34% of GDP.
South Africa’s economic landscape thrives on the dynamism of its SMEs. These businesses are the lifeblood of innovation and job creation. However, a large segment of these businesses are lagging when it comes to digital transformation and leveraging the power of digital tools and technologies. In today’s hyper-connected world, embracing digital enablement – the strategic integration of technology solutions – is becoming the cornerstone of SME success, and those who are not prepared to be a part of the change, risk being left behind.
“At Standard Bank, we are committed to empowering South African SMEs through digital transformation”, says Deenash Pillay, Head of Enterprise Banking. “SMEs are the backbone of our economy, and by enabling them to harness the power of digital solutions, we help them unlock their full potential, drive efficiency, and enhance their competitive edge. Our goal is to support every stage of business development, from starting and managing to growing a sustainable operation. This collaboration underscores our dedication to fostering a sustainable and inclusive economic future for South Africa.”
Fortunately, there are strategies and innovations that can level the digital playing field, allowing these businesses to compete effectively and unlock their full potential.
Some of the technologies making the most impact include:
- Affordable online advertising platforms and social media analytics tools that allow SMEs to target their marketing efforts effectively and track the results of their campaigns. This empowers businesses to make the most of their marketing strategies and to reap increased return on investment (ROI).
- Business management software that automates tasks like accounting, inventory management, and customer relationship management (CRM). This frees up valuable time for employees to focus on core business activities, leading to greater efficiency and productivity.
- Business intelligence tools that can analyse vast amounts of data to identify trends, understand customer behaviour, and gain valuable insights. This empowers SMEs to make data-driven decisions that can be the game-changer in business strategies.
South African SMEs can realise the full value of technology by implementing effective strategies to help leverage the power of digital, no matter what size the business is.
There are three important steps to take when considering new technologies:
- Identify needs and goals
Before investing in technology, conduct a thorough assessment of the business needs and goals. Identify areas where technology can create the most significant impact and prioritise solutions that align with strategic objectives.
- Develop a digital marketing strategy
Develop a comprehensive digital marketing strategy to build brand awareness, reach the target audience, and drive sales. Make use of social media platforms, content marketing, and search engine optimisation (SEO) techniques to attract new customers and establish a strong online presence.
- Embrace a learning culture
Technology is constantly evolving. It is important to build a culture of continuous learning within the company by encouraging employees to stay updated on the latest technological advancements and digital trends. Invest in training programs to equip the workforce with the skills needed to leverage technology effectively.
“Technology is no longer a luxury for South African SMEs; it’s a necessity. It is crucial that businesses across the board not only understand the power of digital, but fully embrace the economic benefit of technological advancements. Now it the time for South African SMEs to bridge the digital divide and build an empowered digital future for themselves to become active players in the country’s economy – for the long term,” concludes Pillay.
Join us for the 8th annual Standard Bank SME Summit in partnership with Business Day, where we will be discussing the Power of Digital Enablement for SMEs.
Date: 23 July 2024
Time: 9.30am -12.30pm
To register for the online event, please click here