Apr 122012
 

A vital life saver to SMEs this time of year

Entrepreneurial airline, Velvet Sky’s recent cash flow issues, resulting in supplier BP calling for the company to be liquidated, are a stark reminder for South African entrepreneurs of the potential damage that an ineffective cash flow system can cause to their businesses.

The airline, which has operated for almost a year, recently suspended its operations indefinitely after several of its flights were cancelled when it failed to pay its service providers, including BP and SAA Technical.

According to Nimo Naidoo, project manager of the Sanlam / Business Partners Entrepreneur of the Year® competition, one of the biggest challenges entrepreneurs face is funding and cash flow, and the mismanagement of these vital elements is responsible for causing over 70% of businesses to failing within their first year… more