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SHOCKING SURVEY RESULTS!
Our friends at fedup.co.za recently undertook a consumer survey which unearthed some very interesting results for the one-man and small to medium business owner. Here is an extract (reproduced with kind permission of fedup.co.za):
When I see statistics like the ones below, I cringe because it proves that consumers are too scared of small businesses so they turn to the big guys who they trust. This is why the "colours" (the blues, the yellows, the reds, the greens, etc. - you know who I'm talking about) make so much money. The South African economy is essentially a monopoly which is why we as consumers continue to overpay on so many items that are dirt cheap overseas.
Proof of this has come out in the survey:
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An alarming 55% of consumers are very nervous (or even terrified) of dealing with small businesses
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One third of all consumers in the group believe small businesses lack integrity
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47% would like to see more active consumer groups in the market (which stands to reason as everyone who answered this question is a Fedup Member)
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77% believe that the Wan**r of the Month award is "exactly what this country needs" and 91.9% want it open to the public as a "Bad Business Register". (Interestingly, only one third wanted the Bad Business Register to be screened before the companies were listed on it)
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This is worrying stuff for the future of small businesses and it brings about two dilemmas:
Dilemma 1: Consumers don't like dealing with small businesses because they don't trust them. All the funding and government support in the world is not going to change this. The only way things can improve is by increasing the overall level of business ethics in South Africa which is what Fedup.co.za is about.
Dilemma 2: Nine out of ten first time businesses fail. Small businesses out there are can't make ends meet and as long as they stay desperate, things won't improve. Those few businesses that do make money tend to grow too big and become opulent, greedy and arrogant! They spend money on fast cars, big houses and boob jobs. Essentially, they become just like big businesses (boobs included)! Not only that, but if it was so easy for a small business to make money, there would be no employees to work for big corporations because everyone would be starting out on their own! It is NOT in the best interests of a society driven by big business to develop a flourishing small business community. This is especially true when the level of education and skills is low and good people are hard to find.
So, is there any way out of all this?
I believe there is. Next time I'll talk about what the businesses said in their survey and discuss some very interesting solutions. If you have any comments in the mean time, feel free to reply to this email. I'm listening.
Until then,
Scott
You can contact Scott from fedup.co.za by visiting their website
