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.

mailto:[email protected]

http://www.sbp.org.za/

http://www.smegrowthindex.co.za/


• Panel: 500 firms10 – 49 EmployeesOperating for at least 2

Years




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.





Challenges to business Growth & Staff Expansion Full Sample

SME Growth Index, NPC Report 2011





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





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.





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

[email protected]




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.