Has the water crisis made SA's business more resilient?
Smaller firms are more resilient than larger ones, which often have higher levels of inertia and resource rigidity than smaller ones, writes Hamieda Parker
Disruptions such as the Western Cape drought can make businesses more resilient. According to research from the UCT Graduate School of Business (GSB), businesses that are able to adapt to one crisis are more likely to be able to survive multiple disruptions. The City of Cape Town recently announced that it would be relaxing the strict water restrictions for residents as well as commercial and industrial users following good winter rain and with local dams more than 70% full. Moving from level 6B to level 5 from the beginning of October 2018 will bring relief to many – not the least of which will be small and medium-sized businesses. The effects of the water crisis have been felt by local enterprises across the country, but especially in drought-stricken areas. In Cape Town, laundry businesses, car washes and hair salons were severely affected by water restrictions, while farmers lost cattle and game and harvests were delayed or ruined. The country’s agricultural output decreased by ...
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