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SMEs advised to reset to beat downturn blues

by Zanele Songo
August 15, 2025
in Business
Reading Time: 3 mins read
A A
Murendeni Mafumo, founder of Kusini Water seen processing water

Murendeni Mafumo, founder of Kusini Water seen processing water

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The year 2025 started on a high note for Murendeni Mafumo, founder of Kusini Water, a South African social enterprise that provides access to clean water for government organisations.

“I had set clear objectives for my company. The main goal for this year was to employ 100 people, and we achieved that,” Mafumo told Vutivi News.

“Unfortunately, halfway through the year, we had to retrench half of them, and now we’re facing CCMA cases for the first time in my company,” Mafumo reflected.

Mafumo said the retrenchments were never part of the plan. The business had secured several contracts, creating optimism for sustainable growth, but the momentum slowed as the year progressed.

He added that the experience has compelled him to reassess how the business operates, rather than focusing solely on growth targets.

Experts are advising small businesses to adapt quickly or risk falling behind, as economic pressures and shifting market realities take their toll.

They further warn that even enterprises that started the year strong are feeling the pinch, with some forced to cut jobs and rethink their strategies.

“Running a business can also feel like a sprint in a marathon. It’s very tough, but all the objectives and plans I had allowed us to revisit our business model and decide where we’re going as a company,” said Mafumo.

According to Tag Mofokeng, CEO and founder of Meet Showbiz Africa, a mid-year reset is not just about planning but about re-evaluating your brand’s purpose, relevance, and connection with your target audience.

“Take some time to reboot and ask yourself, when did you last audit your brand? Are you solving a real-world problem? Does your tone, look, and service reflect today’s audiences?” said Mofokeng during the Proudly SA Mid-year reset for South African entrepreneurs’ webinar.

“These questions will help you identify gaps in your business and ensure your brand resonates with current target markets. Compare your business performance from January until now and review your promotional material,” Mofokeng said.

Mofokeng urged small business owners to rethink their strategies.

“Customers change, but branding often doesn’t. Your 2019 strategy won’t win in 2025 and certainly won’t solve today’s market realities,” he said.

As the second half of the year begins, Thabiso Magodielo, CEO of Vision Unlimited Holding, a company that supports businesses through investments and strategic planning, highlighted that mindset and planning are key to success.

“Going into business, you need to be very careful. You need to do your homework very carefully. Make sure you go into a business that works. Without a clear mindset and flexible plans, even the best business ideas can falter,” he said.

He also added that a business plan is a living document that you regularly reflect on changes in the market, your customers, and your goals.

“With a solid business plan and better understanding of the market demand, there’s no reason why your business will not succeed in 2025,” Magodielo said.

zanele@vutivibusiness.co.za

Tags: Kusini WaterSMMEs and waterSocial enterprise
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South Africa’s first cake picnic gives home bakers a platform to sell, network, and taste success

Bakers aim to cash in on cake picnics

August 15, 2025
Murendeni Mafumo, founder of Kusini Water seen processing water

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