Perfect storms are “a rare combination of circumstances that combine to drastically aggravate an event”. The term is often used to describe a worst-case scenario that resonates with many small businesses in SA and internationally now as they face collapse due to Covid lockdown restrictions.
Having little or no start-ups in the economy jeopardises SA’s future innovativeness. Temporary downsizing of staff becomes a permanent feature, adding to the huge unemployment deficit. overnment support many interventions are simply not bankable, or the rescue packages are plagued by bureaucratic obstacles that outweigh the benefits associated with empty promises.
Such pre-existing conditions seem to be overwhelming SA entrepreneurs as few small businesses were prepared for a crisis of the magnitude of the Covid-19 pandemic. That even before the pandemic SA was in a recession highlights how a “combination of circumstances combine to drastically aggravate” entrepreneurship activity.