Small business confidence falters slightly
Confidence levels in the growth prospects of small and medium-sized enterprises (SME) in South Africa dropped during the first quarter of 2014.
The 2014 first-quarter Business Partners SME Index showed a 3% quarter-on-quarter decline, with 52% of business owners confident that the economy would be conducive to business growth during the next year.
The survey, which measured the attitudes and confidence levels within the local SME sector, found that during the first three months of the year, 73% of SMEs – 3% fewer than the preceding quarter – were confident of growth in their businesses over the next 12 months.
“The first-quarter SME confidence levels reflect the uneasy economic environment confronting business owners,” Business Partners MD Nazeem Martin said.
He added that a 50 basis point hike in interest rates in January, in addition to increasing fuel costs and rising inflation, had further hampered small enterprises’ outlooks.
“It is quite probable that the January 2014 interest rate hike, as well as the possibility of further interest rate increases during the year, will adversely affect these confidence levels in the coming months,” warned Martin.
Economic conditions and cash flow were cited by 31% and 25% of respondents respectively, each reflecting a 2% decrease, as factors set to challenge smaller businesses over the next six months.
About 20% of the respondents – a 4% decline on the prior quarter – indicated funding would be a key issue.
“[Fifty per cent of] respondents expressed average confidence levels that the ease of access to business finance would improve in the next 12 months – the same level recorded in the fourth quarter of 2013,” Martin added.
The SME owners surveyed also displayed average confidence levels, at 36%, that the current labour laws were conducive to the growth of South African businesses – a quarter-on-quarter decrease of 3%.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
