New research finds that as many as 38% small and medium enterprises (SMEs) are unprofitable in SA, while the other 62% are turning small to large profits.<\/p>\n
However, the survey, conducted by\u00a0World Wide Worx, noted that SMEs owned by women have a better chance of being profitable than those run by men.<\/p>\n
The SME Survey 2014, sponsored by the Small Enterprise Development Agency (Seda), Business Connexion and Microsoft, questioned 1,400 business owners.<\/p>\n
It found that SMEs owned by couples or a mix of genders are substantially less likely to be profitable than those operated by either male or female-owners.<\/p>\n
\u201cWhile this result may seem like a big win for women, it comes with an immediate qualifier: the level of female ownership is exceptionally low,\u201d said Arthur Goldstuck, SME Survey principal researcher and MD of World Wide Worx.<\/p>\n
The survey found that overall, only a small proportion of SMEs \u2013 less than one in five \u2013 is thriving. However,\u00a0 17% are \u2018strongly profitable\u2019 while 45% are \u2018just profitable\u2019.<\/p>\n
However, a significant percentage of SMEs are under some distress, with 38% not making a profit.<\/p>\n
Of the male-owned SMEs:<\/p>\n
Of the jointly-owned SMEs:<\/p>\n
And of the female-owned SMEs:<\/p>\n
This equates to a total of 78% of women-owned businesses being profitable, well ahead of the 70% for men.<\/p>\n
With a considerable difference recorded in jointly-owned organisations, where just 53% are profitable, Goldstuck said: \u201cThis arguably shows that there are additional challenges which come with owning a business together with your spouse or partner, or where joint owners have different personal agendas or management styles.”.<\/p>\n
In terms of overall ownership, men dominate, with 48% owning SMEs, while jointly-owned businesses account for 44%. Just 8% of South African SMEs are female-owned businesses.<\/p>\n
\u201cThere is a massive gender imbalance in entrepreneurship,\u201d said Goldstuck. \u201cThis tells us that women are not given enough encouragement or support to become entrepreneurs.\u201d<\/p>\n
Small Businesses Ministry: what to expect<\/strong><\/a><\/p>\n