Sep 14, 2012
Absa launches index to assist SME developmentBack
Absa CE|Africa|Africa|South Africa|Business Banking|Financial Services|Retail|Services|SME|Bobby Malabie|Mike Schussler|South Africa
© Reuse this
With about 50% of the country’s youth unemployed and 15-million people on social welfare supported by 7-million taxpayers, the situation was unsustainable, he said, as Absa launched its Small and Medium-sized Businesses (SME) Index.
Malabie also pointed out that the consolidation of businesses through mergers and partnerships and a number of businesses folding owing to high operating costs and other economic pressures made it difficult for SMEs to employ more people.
The number of employers fell by 5 000 in the second quarter of this year, Absa commented, adding that the number of self-employed citizens also dropped from 1.28-million at the start of 2008, to 1.24-million in the second quarter. However, this was a year-on-year increase from 1.23-million in the second quarter of 2011.
The new Absa SME Index, which extrapolated data sourced from Statistics South Africa’s economic indicators, found that about 270 000 of the more than 1.9-million businesses employed five or more employees. Only 10% employed more than 50 employees.
The index, Malabie said, aimed to provide relevant information on the state and development of SMEs and the challenges of employment in South Africa.
“The Absa SME Index will provide valuable information that allows SMEs to make better and informed decisions with access to solid and reliable information that will help them to grow their businesses,” he said.
It would also enable policymakers to make policy decisions aimed at SME development, reducing high unemployment levels and creating jobs.
Economist Mike Schussler, who worked on the index, added that the index provided a quick overview on how SMEs were fairing.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Labour and Skills Development News
Article contains comments
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...