Credit rating agency Moody’s has further downgraded South Africa into junk status. Vutivi News asked some small business owners around Gauteng what the negative status meant for their businesses.
Lesego Titsi, Graphic Designer And Web Developer – I think that even though this downgrade is bad for big businesses and the economy at large, it may shift the South African mindset and inspire more people to look at local business and SMMEs since international interest and investment after this downgrading will decrease significantly. We need to spend and invest locally.
Amber Sambo, Jewellery Merchandiser – I don’t know how this downgrading will affect my business, I think that if the rand is deemed less valuable it may mess with my customers confidence in buying luxury items such a jewellery and accessories. It will also affect my aspirations to grow my business in the future.
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Mbusiso Siso, Thrift And Consignment Specialist – The downgrading of the South African economy affects large business and this will have an impact on small business as well. Most of our customers are between the ages 16 – 25 some of whom rely on pocket money to purchase clothing. Some are students who use their funding schemes to buy clothes.
Sboniso July Vilakazi, Fashion Designer And Bespoke Tailor – Since our country is being downgraded to junk status, a lot of small businesses had to shut down. If this continues to be the case, I am afraid my business will fall as well. This will be as a result of job loss and pay cuts when that happens they avoid spending money on clothes which is my main business.
