BY PHUMELELE MKHONTA
MBABANE-“Rainy days are the inevitable.”
Economist Thembinkosi Dube, who was speaking as a risk management specialist, gave out this advice to Small Medium-Sized Enterprises, following reports that the country lost over E800 million on Tuesday and Wednesday- when the country was at a standstill, shutting down any economic activity.
Small businesses including salons, vendors, small eateries, were the most hit by the country’s economic inactivity.
When sought for comment on how small businesses can recuperate from the inactivity, Dube said the best way was to prepare for it.
“Big corporations normally have an insurance for disasters and such events, hence they always thrive under most circumstances,” explained the risk management specialist.
Giving advice to small businesses, Dube said they should learn to have a Buffer Fund- which would enable them to survive when there is a disaster, or they are forced to close for business.
“A Buffer Fund would assist them to survive, not only in their businesses, but in their personal loves, throughout the time they are not making an income,” said Dube.
A Buffer Fund is a contingent account separate from all business accounts, which behaves like a person’s saving account and/or unemployment insurance. A characteristic of a Buffer Fund is such that the funds are used by the business owner, to save their business and personal finances while out of business.
