Over a third (35%)\u00a0of South African SMEs have\u00a0experienced\u00a0a threat to their\u00a0survival\u00a0over the past year, according to a new survey.<\/p>\n
The SME Growth Index,\u00a0published\u00a0by business environment specialists SBP, collected data from a\u00a0panel of 500 SME operators.<\/p>\n
It found that the\u00a0majority of firms (51%) had increased their turnover, with 22% reporting that they had stayed the same. The balance, as many as 27%, said they had seen a decline in turnover over the past year, in 2012.<\/p>\n
SBP\u00a0asked the\u00a0panelists\u00a0to assess the business\u00a0environment, in terms of whether it had become easier of more difficult to operate\u00a0an SME in South Africa over the past year.<\/p>\n
Nearly three quarters of respondents, some 74%, agreed that running an\u00a0SME had become more difficult. A further 19% felt that conditions had not changed,\u00a0while a little over 6% felt that it was easier to operate an SME.<\/p>\n
Points of concern<\/strong><\/p>\n Those panellists who felt that operating an SME was more difficult cited a wide A number cited governance factors. These included steep rises in administered prices and municipal accounts, uncertainty about the supply of services and the bungling of visa applications.<\/p>\n The political climate, giving the impression \u2013 rightly or wrongly \u2013 of state weakness, confrontational rhetoric and the potential for violence, was also noted.\u00a0Lastly, legislation and regulations (\u201cred tape\u201d) were repeatedly raised.<\/p>\n Looking ahead<\/strong><\/p>\n Over 60% of panellists indicated that they intended either introducing new products and services or seeking new markets.<\/p>\n A further 20% intended opening new locations, and a further 18% intended opening “These responses suggest a response to economic circumstances predicated on adaption in order to remain in business. Considering the difficult economic circumstances, this is encouraging,”\u00a0SBP said.<\/p>\n However,\u00a09% intended selling their business; 1% closing it; 8% disposing of assets; and The top concern for the panel was municipal governance \u2013 the costs it imposes Microsoft targets Africa\u2019s SMEs<\/strong><\/a><\/p>\n SA rated in global entrepreneurship index<\/strong><\/a><\/p>\n
\nrange of factors. The overall state of the economy featured strongly across the Panel. Simply stated, there was not enough work available.<\/p>\n
\na business in a new industry.<\/p>\n
\n7% retrenching staff.<\/p>\n
\nthrough rates and service charges and the quality of governance it provides. Some
\n38% of panellists ranked this issue as their top concern.<\/p>\nMore on SMEs<\/h3>\n