SME GI, MC Presentation May 2012 [email protected] @sbp.org.za SBP’s SME.
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Transcript of SME GI, MC Presentation May 2012 [email protected] @sbp.org.za SBP’s SME.
SME GI, MC Presentation May 2012 [email protected] www.sbp.org.za www.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.
SME GI, MC Presentation May 2012 [email protected] www.sbp.org.za www.smegrowthindex.co.za
• Panel: 500 firms10 – 49 EmployeesOperating for at least 2
Years
SME GI, MC Presentation May 2012 [email protected] www.sbp.org.za www.smegrowthindex.co.za
SME GI, Manu Presentation May 2012 [email protected] www.sbp.org.za www.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.
SME GI, MC Presentation May 2012 [email protected] www.sbp.org.za www.smegrowthindex.co.za
Challenges to business Growth & Staff Expansion Full Sample
SME Growth Index, NPC Report 2011
SME GI, MC Presentation May 2012 [email protected] www.sbp.org.za www.smegrowthindex.co.za
SBP’s SME Growth Index2011 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 growthShortage 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
SME GI, MC Presentation May 2012 [email protected] www.sbp.org.za www.smegrowthindex.co.za
SBP’s SME Growth Index2011 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.
SME GI, MC Presentation May 2012 [email protected] www.sbp.org.za www.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.
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