Absa and the South African Chamber of Commerce and Industry (Sacci) have launched a new index that will serve as a yardstick for the growth and development of small and medium enterprises (SMEs) in South Africa.
An initiative of the Bureau of Market Research (BMR), the Absa/Sacci Small Business Growth Index (SBGI) will measure the perceptions of small business owners and managers regarding business growth, prevailing small business conditions and challenges. It will provide a view of future business prospects and the support required to facilitate the growth and development of the sector.
In-depth insights into the SME ecosystem will enable stakeholders across the private and public sectors to implement solutions and interventions to enhance the operating environment for these businesses.
“As the bank of the entrepreneur, Absa is committed to playing a key role in enabling SMEs to fulfil their potential, not only through appropriate solutions but by actively supporting initiatives that nurture success and foster sustainable growth,” said Ronnie Mbatsane, managing executive for SME Business at Absa Business Banking.
“It is our hope that the SBGI will create a platform for dialogue and collaboration that will not only enable job creation but serve as a catalyst for entrepreneurial innovation.”
Sacci CEO Alan Mukoki said the chamber “deeply appreciates” the partnership with Absa and the BMR.
“Together, we aim to create a lasting legacy project that will provide South Africa, for the first time, with academically rigorous research and clear insights. This will serve as a reliable platform for decision-makers in both the private and public sectors, enabling them to achieve critical objectives,” Mukoki said.
The Small Enterprise Development and Finance Agency estimates that small, medium and micro enterprises are responsible for approximately 60 to 70% of employment in South Africa, making them a key driver of job creation in the economy.
According to an initial SBGI pilot, the top concerns of small business owners include inadequate capital, infrastructure breakdowns and managing cash flow. Generally, SMEs are also concerned about economic uncertainty, slow growth and power outages.
Absa said the findings of the first SBGI would be announced in the coming weeks.
