SME GI, MC Presentation May SBP’s SME Growth Index Longitudinal Study (Annual Survey for at least 3 Years) Based on experiences & perspectives of panel of 500 SME’s, randomly selected, in 3 key sectors Exploring external & internal factors impacting on growth & job creation potential Focus on established enterprises with potential to expand, generate wealth & take on additional employees. First study of its kind in SA, over time produce definitive account of the country’s SME sector.
SME GI, MC Presentation May Panel:500 firms 10 – 49 Employees Operating for at least 2 Years
SME GI, MC Presentation May
SME GI, Manu Presentation May SBP’s SME Growth Index 2011 Top level findings: Manufacturing Sample Profile Mainly in Plastics, Food, Metals, Wood, Printing, Chemicals. 10m Median Turnover 29 Permanent Staff 55% Operating for over 20 Years 60% Business owners are 51 years or older Diploma/Matric (Grade 12) Anxious about the future of sector, economic climate strategic problem, increases in administered prices - (electricity, fuel & costs of imported components) key concern.
SME GI, MC Presentation May Challenges to business Growth & Staff Expansion Full Sample SME Growth Index, NPC Report 2011
SME GI, MC Presentation May SBP’s SME Growth Index 2011 Top Level Findings SME Manufacturers: Labour Market: 25% of manufacturing panelists identify inflexible Labour regulations as critical barrier to employment. 55% Major regulatory barrier to business growth Shortage of Skills: Skills, qualified artisans, backbone of manufacturing – in short supply. 15% SME manufacturers state quality of basic literacy, numeracy is poor. On the job training more burdensome. But, 42% SME Manufacturers have grown their staff over past 5 years
SME GI, MC Presentation May SBP’s SME Growth Index 2011 Top Level Findings Outlook for SME Manufacturers: More likely than other firms in panel to have shed Jobs, pessimistic about long term future of manufacturing in SA. 35% will exit in years 20% have no long term plan Overall anxious about outlook - many say not able to sell their business, and some expect to close shop on retirement.
SME GI, MC Presentation May Key Message Emerges SA in danger of losing small scale manufacturing base. Result of: Adverse economic conditions Aging entrepreneurs + skilled staff Few new firms emerging to replace.
SME Growth Index 2012 Survey Commencing in June; Results due end October Chris Darroll: