SMEs tackle seasonal sales challenges
16 Jan 2025
Small and medium enterprises (SMEs) across the country are navigating mixed fortunes as they deal with a seasonal sale slump from December to date.
While some business owners enjoyed a surge during holiday demand that extended into the New Year, others are grappling with reduced customer spending and tighter budgets.
This diversity underscores the resilience and adaptability of SMEs as they strategise to overcome challenges in an unpredictable economic climate.
Street vendor Ms Tambudzai Abelphillip shared that while she made sales during the festive season, they fell short of expectations. She emphasised the importance of understanding market dynamics to improve sales and, ultimately, achieve profitability.
“We try to reduce the prices of our market offerings. However, supplier prices are already high. I have to price my products based on the various stages required in ensuring the products reach the final consumer. It is not necessarily about creating our own markup prices, but about generating profit. I can only hope that, over time, our clients understand our situation,” she explained.
Hairdresser and nail technician, Ms Shanise Mosebudi noted that her business thrives in December, fueled by the numerous events such as weddings and birthday parties. She added that income generation continued as she plaited students’ hair in preparation for school reopening.
Ms Mosebudi, however, expressed concerns over lack of regulation in the informal sector, pointing to the influx of unauthorized foreign business owners catering to the same market.
“In the formal sector, there is a localisation policy, but things are completely different in the informal sector, where anyone can establish a business and start earning profits. While it’s acceptable for foreign business owners to try to make a living, they should be legalised and authorised. Previously, police raids ensured that every foreign business owner had the required documentation, which helped create a fair marketplace,” she lamented.
Perfekt Roast Kofi Managing Director, Mr. Seabe Motlogelwa highlighted that despite persistent rains, his business remained open during the festive season.
He noted a promising start to January as people returned to work, boosting daily sales. However, he acknowledged that many clients, especially parents, were operating on tighter budgets due to back-to-school expenses.
“We have established a strong following on social media, which has significantly increased sales. However, we face challenges such as hot weather, which reduces demand for hot beverages, as well as occasional machinery faults and adverse weather conditions like wind and heavy rain,” said Motlogelwa.
He urged aspiring entrepreneurs to thoroughly study the market and acquire the necessary business skills to ensure the smooth and successful operation of their ventures. ENDS
Source : BOPA
Author : Thato Setlhare
Location : GABORONE
Event : Interview
Date : 16 Jan 2025