Starting a new venture or establishing a small business comes with excitement and some challenges.
Entrepreneurship is a key driver of economic growth, so more information and support is required to empower and protect entrepreneurs and their businesses to help them along the journey, says insurer, Liberty.
"Entrepreneurs have the potential to spark innovations and capitalise on market opportunities, which has a direct impact on employment creation as well as economic growth. Protecting the very lives that pour out their all into these opportunities should be priority, and entrepreneurs should take this to heart when planning their ventures," says Nalen Naidoo, Divisional Executive for Liberty's Retail Solutions.
Naidoo says that while the impact of the pandemic continues to affect everyone, entrepreneurs were undoubtedly the hardest hit, especially when one considers that most of the entrepreneurs use household income and assets to fund their businesses. Therefore, when business is negatively impacted, so is the entrepreneurs' household stability.
"In business and personally, no one can completely guard against unforeseen losses in any eventuality, however, preparation is key." Insurance solutions such as Liberty's flagship risk product, Lifestyle Protector, and Liberty's comprehensive range of Business Assurance solutions provide the necessary protection for businesses and their founders.
President Cyril Ramaphosa deems the advancements and support of entrepreneurial ventures as key contributing factors in aiding South Africa on its path to economic reconstruction and recovery during this time.
"We established that great businesses are always centered around important individuals who propel these enterprises ahead. This means the loss of a business partner to death or disability could have severe financial implications on the operation. Along with this, there are also business continuity factors and assets that business owners and entrepreneurs cannot do without, and which are worth protecting."
It's not a one size fits all approach, he says. "Just as we seek a mechanic to attend to our vehicles, or a doctor to attend to our health, we encourage entrepreneurs to seek financial planning experts such as Financial Advisers to guide them to suitable life insurance solutions.
This article does not constitute tax, legal, financial, regulatory, accounting, technical or other advice. The material has been created for information purpose only and does not contain any personal recommendations. While every care has been taken in preparing this material, no member of Liberty gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information presented. This document is a summary of the features of Lifestyle Protector as at the time of publication. Any recommendations made by your financial adviser or broker must take into consideration your specific needs and unique circumstances.
Liberty Group Ltd is the licensed Life Insurer of Lifestyle Protector and an Authorised Financial Services Provider (no. 2409). Terms and Conditions, risks and limitations apply.