More than 70% of South African SMEs believe their businesses are run better than they were a year ago, yet 52% don’t fully understand how to handle their business cycles in order to adjust their savings levels for good and bad days.

According to recent research by financial services firm Liberty, the majority of SMEs are in need of general financial education, including advice on how to invest wisely and plan for the future. And while two-thirds of the SMEs polled feel negatively about their current financial situation, they are unlikely to seek help with the next year, as their most important priorities include paying rent or bonds, groceries and getting rid of debt, as reported by Moneyweb.

That said, the survey also found that 87% of SMEs currently offer retirement plans, 63% offer bonuses, 42% offer medical aid and 97% of the SMEs provide assistance in terms of small loans or salary advances when approached by employees.

22 November 2016
Image: Gallo/Getty Images