Sandi Richardson, HR Executive at RCS
South Africans have so much to be proud of right now – our Olympians, our sports teams, and our enduring resilience. But when was the last time you supported a local business? With unemployment rates soaring, backing home-grown entrepreneurs is more critical than ever for creating jobs and driving economic growth.
Sandi Richardson, HR Executive at RCS, emphasises that supporting local businesses goes beyond economics; it’s about preserving the fabric of our nation’s diverse cultural heritage. “In a world dominated by global brands and cross-border e-commerce, it’s easy to overlook the value of supporting local businesses. Yet the benefits are profound, with far-reaching implications for our economy and communities.”
As South Africa comes together to celebrate Heritage Month this September, Richardson outlines five reasons why supporting local businesses is so important:
1. Economic growth
Money spent at local businesses tends to stay within the community, fuelling further economic activity. Considering that small businesses contribute around 34% of South Africa’s GDP, supporting local can help bolster this contribution, leading to more robust economic growth and stability. This creates a positive cycle of investment and growth, which is crucial for building a resilient and sustainable economy.
In 2022, RCS demonstrated its commitment to supporting local innovation by acquiring Mobicred, a home-grown business founded by entrepreneur Jason Sive. This strategic investment expanded RCS’s credit solutions to include online revolving credit facilities, catering to diverse customer needs both in-store and online.
2. Job creation
It is estimated that South African small businesses employ between 50% and 60% of the country’s workforce. By choosing to support these enterprises, one can help generate employment opportunities, reducing the country’s high unemployment rate and contributing to a more stable economy.
RCS is proud of its own local beginnings and the jobs it has been able to create, growing from a modest start of just 40 employees in 1999 to a team of nearly 1,500 today. RCS has not only expanded its workforce, but also earned significant recognition. In 2024, RCS achieved its sixth consecutive accreditation as a Top Employer in South Africa, and for the past 3 years they have been awarded the Top Gender Empowered Company certification by Standard Bank Top Women.
3. Community development
Local businesses tend to reinvest in their communities at a higher rate than larger corporations. International research firm, Civic Economics, found that local independent businesses return more than three-times as much money to local economies than global retail stores. This means that South African businesses are more likely to reinvest their profits in local initiatives, such as schools, sports teams, and community projects, helping to build stronger, more vibrant communities.
4. Preservation of culture and identity
Supporting local businesses is crucial for preserving South Africa’s diverse cultural heritage and regional identity. These businesses often produce goods and services that reflect traditional crafts, artisanal skills, and local customs, helping to keep these cultural practices alive.
By choosing to buy local, consumers not only support the livelihoods of cultural practitioners but also reinforce the distinctiveness of their regions, fostering pride and preventing cultural homogenisation. Moreover, thriving local businesses contribute to sustainable tourism and cultural innovation, ensuring that South Africa’s rich traditions continue to evolve and remain relevant for future generations.
5. Environmental sustainability
Shopping locally offers significant environmental benefits as local businesses rely less on extensive supply chains and international shipping, leading to a smaller carbon footprint and requiring less energy for manufacturing, storage, and transportation.
Local businesses also tend to generate less waste by adopting eco-friendly practices like recycling and using biodegradable packaging materials, which further reduces their environmental impact.
ENDS
