1. SME GI, MC Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za 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.

2. SME GI, MC Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za Panel:500 firms 10 – 49 Employees Operating for at least 2 Years

3. SME GI, MC Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za

4. SME GI, Manu Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za 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.

5. SME GI, MC Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za Challenges to business Growth & Staff Expansion Full Sample SME Growth Index, NPC Report 2011

6. SME GI, MC Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za 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

7. SME GI, MC Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za 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 10 -20 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.

8. SME GI, MC Presentation May 2012 info@sbp.org.za www.sbp.org.za www.smegrowthindex.co.zainfo@sbp.org.zawww.sbp.org.zawww.smegrowthindex.co.za 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.

9. SME Growth Index 2012 Survey Commencing in June; Results due end October 2012 www.smegrowthindex.co.za www.sbp.org.za Chris Darroll:011 486 0797 chris@sbp.org.za