The Namibian economy entered into a full recession in June this year. The poor performance was mainly ascribed to the construction, manufacturing, wholesale and retail trade as well as hotels and restaurants sectors.
“Every day we read about vehicle sales that are down, unemployment that is up, and closures at companies,” says Fanie Steenkamp, Head of Commercial Banking at FNB Business. He adds: “Managing a business through an economic recession may be the toughest challenge an entrepreneur is faced with; but, if you do not fall prey to panic, a downturn may present an opportunity to the business to confront its ineffective areas and remedy them.”
“Businesses should be able to do more than simply accept stagnating levels of growth, or even decline. In fact, some businesses grow at surprising rates during an economic recession. If there was ever a time to adopt a positive, opportunity-based mindset, it is now, and it is one of the best things you can do to lead your business through challenging circumstances. To come out a better business at the end of any downturn, you need to carefully consider your business model and context to devise your strategy going forward.”
Fanie shares some elements business owners should think about in this time:
“Before taking obvious decisions to avoid difficulty in a downturn, rather analyse your business model diligently and identify where the opportunities are to execute the core of what you do better, faster and more efficiently. With the right attitude in leadership, the current downturn could result in you strengthening your business as opposed to killing it,” says Fanie.
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