Business closure stats in South Africa for 2023
A staggering 144 businesses closed their doors in November 2023. This brings the total number of businesses that closed in 2023 sofar in excess of 1500. These are the latest stats according to Stats SA.
Out of the 144 businesses closing in November 2023, 131 of these were voluntary whereas 13 were shut on a compulsory basis.
What is important to note is that the actual number of businesses closing in October 2023 was 13.4% lower than the same period in 2022 (ending October 2022) and the same can be said for November with a 13.3% decrease.
The industries with the most business closures were finance, real estate and business services industry with a total of 507 closures sofar in 2023.
Other industries with large numbers of closures were:
- Trade, catering and accommodation - 290 closures
- Community, social and personal services - 116 closures
- Manufacturing - 52 closures
- Unclassified businesses - 432 closures
Data from StatsSA shows that there is a year-on-year decline in liquidations and business closures however November was a difficult month with the following industries seeing a decline (negative growth):
- Mining
- Manufacturing
- Food industry
On the bright side headline consumer inflation decreased in November 2023. StatsSA reported inflation reduced to 5.5% in November 2023 compared to 5.9% in October 2023. The easing on inflation was mainly attributed to the decrease in the fuel price index to 1.8% in November 2023.
Economic sectors that have seen an increase in inflation during November 2023 were:
- Food and Beverages Industry
- Meat Industry
Source: Data from Stats SA
Load shedding and the slow recovery from the COVID 19 pandemic has made it a tough climb out of the economic strain most South Africans have been feeling.
South African businesses that are still trading are urged to be prudent and to make sure their compliance is in order. Aside from that, make the necessary provisions to avoid financial pitfalls and don't live above your means, this is the only way to weather a slow period in an economic cycle.
We should see the interest rate and subsequent inflation easing in 2024 and the prudent well thought through businesses owners will be the ones coming out tops. Read our blog with tips for 2024 SME and Start-ups are the solution to job creation (zeeliepasa.co.za)
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