As South Africa comes together to mark the significance of Heritage Month, Sandi Richardson, HR executive at retail consumer finance provider RCS, shines a spotlight on the importance of supporting local businesses.
In light of the rising unemployment rate and other systemic issues, Richardson provides five reasons why it is crucial to support local businesses in order to create jobs and stimulate the economy.
“In a world dominated by global brands and cross-border e-commerce, it’s easy to overlook the value of supporting local businesses. Yet the benefits are profound, with far-reaching implications for our economy and communities,” she says.
Economic growth
She explains that supporting local businesses in South Africa can boost economic activity, as small businesses contribute 34% of the country’s GDP, promoting robust growth and stability.
This creates a positive cycle of investment and growth, which is crucial for building a resilient and sustainable economy.
Job creation
It is estimated that South African small businesses employ between 50% and 60% of the country’s workforce. By choosing to support these enterprises, one can help generate employment opportunities, reducing the country’s high unemployment rate and contributing to a more stable economy.
“RCS is proud of its own local beginnings and the jobs it has been able to create, growing from a modest start of just 40 employees in 1999 to a team of nearly 1 500 today.”
Community development
She also mentions a Civic Economics study that shows how important community development is, stating that small businesses in South Africa are more likely than larger corporations to spend their revenues in local initiatives such as sports teams, schools, and community projects.
Preservation of culture and identity
Supporting local businesses is crucial for preserving South Africa’s diverse cultural heritage and regional identity. These businesses often produce goods and services that reflect traditional crafts, artisanal skills, and local customs, helping to keep these cultural practices alive.
She explains that by choosing to buy local, consumers not only support the livelihoods of cultural practitioners, but also reinforce the distinctiveness of their regions, fostering pride and preventing cultural homogenisation. Moreover, thriving local businesses contribute to sustainable tourism and cultural innovation, ensuring that South Africa’s rich traditions continue to evolve and remain relevant for future generations.
Environmental sustainability
Richardson states that shopping locally offers environmental benefits as local businesses have fewer supply chains and international shipping, reducing their carbon footprint and energy consumption. They also generate less waste through eco-friendly practices such as recycling and biodegradable packaging.
The Star