No relief in sight for SMMEs
Most small, medium and micro enterprises (SMME) in town have not received any assistance from government's Covid-19 coronavirus relief fund since its implementation 71 days ago.
LYDENBURG – Kapsel Haarsalon was one of the first businesses that applied, but was informed that it does not meet the criteria for subsidy or aid. The salon said it was turned down on account of falling short of the governments’ broad-based BEE (B-BBEE) codes.
Most SMMEs Steelburger/Lydenburg News approached, also confirmed they had received no assistance through the programme.
The coronavirus pandemic and subsequent lockdown caused the world to come crashing down on small businesses. The newspaper spoke to these sole traders to find out how the lockdown has influenced not only their financial position, but also their annual income – if any.
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Lydenburg is mostly reliant on its small enterprises supplying work and services. Unfortunately, plenty of establishments are not yet allowed to trade on the current level 3 to be implemented on June 1. Kapsel Haarsalon, situated at the Heads Shopping Centre is one of many retailers not permitted to render services until level 1. Tiana Otto, owner and manager, said she and her personnel were barely hanging on. “We still have no idea when we can open. We can only operate on level 1 like other beauty salons, guest houses, lodges and restaurants.”
Otto said the business has received no income since level 5 of lockdown. “We are selling products online and via WhatsApp, but that barely covers any of our expenses. We opened two years ago and have since grown and managed to employ an extra hairdresser. We received relief on our rent for May, but I don’t think that this will continue as the centre owners have their own expenses to cover.”
A well-known guest house in town also said it has not had any income since the beginning of lockdown on March 26. “Our doors have been locked since the beginning of the isolation period. We have had no guests or revenue from then up until now. No functions for catering, no international tourists, nothing. We had over 50 international tourists who cancelled and local business people may not travel interprovince. We cannot live without an income. Our workers only get paid when they work and have to claim UIF, but this will also dry up soon. Lockdown has to end completely,” one of the owners said.
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Petro van Heerden, make-up and hair artist at Blush_Ed by Excellence, also owns a salon in town. “I don’t know what to tell you without it sounding like complaining. That is all you can do; complain. It is extremely difficult. I try to sell products online for an income since we cannot operate. I can’t practise my beauty techniques because I don’t want to waste products. We don’t know whether we will be able to continue. You will have to have money to start up again. There are a lot of parlours I know of that will not reopen. They simply cannot afford it.”
She said her business is relatively new with not a large client base. “We have not had the opportunity to build up some capital for these unforeseen circumstances. You can only pray and try to be positive.”
The De Ark House dates back to 1857, which makes it one of the oldest remaining buildings in Lydenburg. In 1893 it was converted into a double-storey building, as it was expected of the parson’s wife to accommodate catechumen who stayed far in the district. This guest house is also still under lockdown restriction. Francis le Roux, owner of De Ark, said they started receiving international cancellations as early as January. “We had no idea what was happening. I thought that we received a bad review on one of the websites. Meanwhile, it was the outbreak of the virus in other countries. Today is not a good day. I now have to apply for a loan that I cannot afford to repay.”
De Ark also applied for the relief fund, but was turned down.
