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Small business and their economic situation

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by ConsultaPanel Team, 02 Sep 2014


By Jannie Els

With the introduction of the Ministry of Small Business Development in 2014, it seems that the government is taking a stern look at the small business market with hopes to improve their economic situation. This is all good and well, but how does this impact small business?

Mr. Jannie Els
Mr. Jannie Els

When ConsultaPanel spoke to a sample of small business owners, more than half indicated that the ministry would add little to no value. This is not surprising, since the Nedbank Small Business Index™ (NSBI) has been reporting low scores since 2013 in terms of the appropriateness of support received by small business owners from government.

But if it is not government that would assist small businesses in growing their turnover and client base, to whom should small businesses turn to? From the NSBI survey, most small businesses indicated that they finance growth, infrastructure investment and general capital expenditure from their profits and savings.

The other businesses, which finance these expenditures through credit mainly, approach their commercial banks. Given the numerous government grants and venture capitalists available, it shows that businesses either do not trust these entities, the entities do not cater adequately for the small business market or small businesses have not been made aware of these opportunities.

It definitely is not all doom and gloom, since small businesses have been claiming head count increase and expansion of capacity over the past year, which indicates that there exist growth opportunities within the market. More than a third of these businesses are also looking across the border for new clients and market opportunities, especially in Africa.

For more information on the Nedbank Small Business Index™, please visit www.simplybiz.com and navigate to the NSBI tab.

Did you know that Friday 5 September is Small Business Friday? Visit http://www.smallbusinessfriday.co.za for more information.

Are you a small business owner? We found this great read for you. Click here to learn more about taking your small business online








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