Business Partners Limited SME confidence index Q3 2014 final

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Business Partners Limited SME Confidence Index Third Quarter of 2014: July September Issued December 2014 1

Transcript of Business Partners Limited SME confidence index Q3 2014 final

Page 1: Business Partners Limited SME confidence index Q3 2014 final

Business Partners Limited SME Confidence Index

Third Quarter of 2014: July – September

Issued December 2014

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RATIONALE FOR THE BUSINESS PARTNERS LIMITED SME

CONFIDENCE INDEX

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• SMEs are often punted as economic growth generators that will help solve the country’s unemployment, poverty and

inequality problems.

• Whilst we all view SMEs as the engines of economic development and job creation, we have in the past not had credible information on the sector and confidence levels within the sector.

• In July 2012, Business Partners launched its quarterly Business Partners Limited SME Confidence Index to obtain the views of SME sector entrepreneurs with the view to: o Gauge the current buoyancy of the SME sector;

o Understand the key social and economic issues affecting SMEs in South Africa.

• The index and survey results are made available to stakeholders so that they may create and shape an environment which is conducive to SME growth.

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BPL SME

CONFIDENCE

INDEX

SURVEY

SAMPLE

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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1 -10

10 - 20

20 - 50

50 - 200

over 200

How large, in terms of full-time employees, is your business?

75.84 %

11.86 %

6.49 %

4.03 %

1.79 %

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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Have you appointed new employees in the last year?

Yes No50.11 % 49.89 %

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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Have you appointed new employees in the last quarter?

Yes No

66.74 %

33.26 %

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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How long has your business been in operation?

less than a year

1 - 3 years

3 - 5 years

5 - 10 years

over 10 years27.74 %

19.91 %

9.17 %

26.62 %

16.55 %

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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In which province do you operate?

Eastern Cape

Free State

Gauteng

Kwazulu-Natal

Limpopo

Mpumalanga

North West

Nothern Cape

Westren Cape

Country Wide

Outside of South Africa

1.79% 15.88 %

13.65 % 10.29 %

8.5 %

35.12 %

6.49 % 6.26 %

5.37 %

23.71 %

8.50 %

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Agriculture, hunting, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas and water supply

Construction

Wholesale and retail trade

Repair of motor vehicles, motor cycles, personal & household goods

Hotels and restaurants

Transport, storage and communication

Financial intermediation insurance, real estate & business services

Community, social and personal services

Consulting and training

Creative, media, pr and event management

It and technology

Health and medical

Other(please specify)

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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In which industry do you operate (Based on the Standard Industrial Classification)?

1.57 %

3.13 %

3.8 % 16.33 %

5.15 %

9.4 %

0.45 %

6.04 %

5.59 %

14.32 %

4.92 %

4.25 % 1.79 %

6.71 %

6.71 % 9.84 %

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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What is the average age group of the business owners?

21 - 35 years old

36 - 45 years old

46 - 55 years old

56 - 60 years old

Older than 60

29.71 % 11.79 %

27.66 %

25.62 %

5.22 %

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: SURVEY SAMPLE

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Is your business female, male or jointly owned?

Female

Male

Jointly owned

51.35 %

15.32 %

33.33 %

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02 BPL SME

CONFIDENCE

INDEX

SURVEY

RESULTS 12

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CONFIDENCE LEVELS

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On a scale of 1 to 5, SME owners were asked to rate their

level of confidence on a range of topics from economic

growth, business outlook and ease of doing business.

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

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How confident are you that your business will grow in the next 12 months?

1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident

7.54 %

43.31%

16.79 %

29.20 %

3.16 %

SMEs expressed average confidence levels of 75% (Unchanged from Q2 of 2014) that their business will grow in the next 12 months.

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

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1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident

14.81%

20.87%

25 %

7.04 %

32.28 %

How confident are you that the SA economy will be conducive for business

growth in the next 12 months?

SMEs expressed average confidence levels of 55% (Down 3% from Q2 of 2014) that the SA economy will be conductive for business growth in the next 12 months.

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How confident are you that ease of access to business finance will improve

in the next 12 months?

1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident

29.98 %

16.46 %

17.44 %

11.30 %

24.82 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

SMEs expressed average confidence levels of 51% (Down 1% from Q2 of 2014) that the ease of access to business finance will improve in the next 12 months.

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How confident are you that current labour laws are conducive to the growth

of SA businesses?

1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident30.54 %

7.64 %

12.56 % 25.37 %

23.89 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

SMEs expressed average confidence levels of 38% (Down 4% from Q2 of 2014) that the current labour laws are conductive to the growth of SA businesses.

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How confident are you of finding staff with the right skills set and experience

to facilitate the growth of your business?

1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident

18.29 %

29.27 %

18.05 %

29.76 %

4.63 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

SMEs expressed average confidence levels of 60% (Down 1% from Q2 of 2014) that they will find staff with the right skills set and experience to facilitate growth in their businesses.

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1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident

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How confident are you that the government is doing enough to foster SME

development in SA?

20.64 %

7.37%

10.32 % 26.54 %

35.14 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

SMEs expressed average confidence levels of 34% (Down 5% from Q2 of 2014) that the government is doing enough to foster SME development in SA.

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1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident

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How confident are you that your clients will pay you within the stipulated

time?

17.69 %

34.15 %

10.81 %

33.66 %

3.69 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

SMEs expressed average confidence levels of 63% (Down 1% from Q2 of 2014) that their clients will pay them within the stipulated time.

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1 - Not confident

2 - Somewhat confident

3 - neither confident nor diffident

4 - confident

5 - very confident

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How confident are you that the newly introduced Ministry of Small Business

Development will aid small and medium businesses?

30.71 %

12.53 %

15.48 %

14.50 %

26.78 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: CONFIDENCE LEVELS

SMEs expressed average confidence levels of 46% (Down 3% from Q2 of 2014) that the newly introduced Ministry of Small Business Development will aid small and medium businesses.

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IMPORTANCE LEVELS

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On a scale of 1 to 5, SME owners were asked to rate the

level of importance placed on issues such as mentorship,

access to finance and SME specific information, resources

and support

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1 - Not important

2 - Somewhat important

3 - neither important nor insignificant

4 - important

5 - very important

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How important is access to finance to the growth and sustainability of

your business?

49.63 % 15.40 %

19.07 %

4.65 %

11.25 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: IMPORTANCE LEVELS

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1 - Not important

2 - Somewhat important

3 - neither important nor insignificant

4 - important

5 - very important

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Please rate how important you believe having access to SME specific

information, resources and support is the development and growth of

your business.

45.91 %

1.99%

31.76 %

4.69 %

15.38 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: IMPORTANCE LEVELS

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1 - Not important

2 - Somewhat important

3 - neither important nor insignificant

4 - important

5 - very important

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: IMPORTANCE LEVELS

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Please rate how important you believe having a mentor is when it comes to

the development and growth of your business.

48.26 %

3.98 %

28.61 %

4.23 %

14.93 %

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1 - Not important

2 - Somewhat important

3 - neither important nor insignificant

4 - important

5 - very important

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Please rate how important you believe social media is to market your

business effectively?

40.20 %

2.73 %

31.02 %

7.44 %

18.61 %

BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: IMPORTANCE LEVELS

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ASSISTANCE REQUIRED TO

OVERCOME CHALLENGES

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SME owners were asked to rate assistance required to

overcome challenges. The list of challenges was provided.

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: ASSISTANCE REQUIRED TO OVERCOME CHALLENGES

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What form of assistance from government would benefit you most as an entrepreneur/aid the growth of your business?

0 2 4 6 8 10

Less red tape

Funding

Tax break

Prompt payment processing

Implementation of existing policy foreconomic growth by government

Mentorship

Direct business flow from government

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BUSINESS PARTNERS LIMITED SME INDEX Q3 OF 2014: ASSISTANCE REQUIRED TO OVERCOME CHALLENGES

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What is the main challenge that SMEs will face in the next six months?

0 2 4 6 8 10

Economic conditions

Cash Flow

Funding

Crime

Regulatory

Marketing

Skills

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THANK YOU

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