SBP’s SME Growth Index
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Longitudinal Study (Annual Survey for at least 3 Years)
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Based on experiences & perspectives of panel of 500 SME’s, randomly selected, in 3 key sectors
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Exploring external & internal factors impacting on growth & job creation potential
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Focus on established enterprises with potential to expand, generate wealth & take on additional employees.
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First study of its kind in SA, over time produce definitive account of the country’s SME sector.
SME GI, MC Presentation May 2012 info@sbp.org.za
www.sbp.org.za
www.smegrowthindex.co.za
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Panel:
500 firms
10 – 49 Employees
Operating for at least 2 Years
SME GI, MC Presentation May 2012 info@sbp.org.za
www.sbp.org.za
www.smegrowthindex.co.za
SME GI, MC Presentation May 2012 info@sbp.org.za
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.
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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, Manu Presentation May 2012 info@sbp.org.za 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 info@sbp.org.za
www.sbp.org.za
www.smegrowthindex.co.za
SBP’s SME Growth Index
2011 Top Level Findings
SME Manufacturers:
Labour Market:
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25% of manufacturing panelists identify inflexible Labour regulations as critical barrier to employment. •
55% Major regulatory barrier to business growth
Shortage of Skills:
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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,
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42% SME Manufacturers have grown their staff over past 5 years
SME GI, MC Presentation May 2012 info@sbp.org.za
www.sbp.org.za
www.smegrowthindex.co.za
SBP’s SME Growth Index
2011 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. •
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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 info@sbp.org.za
www.sbp.org.za
www.smegrowthindex.co.za
Key Message Emerges
SA in danger of losing small scale manufacturing base.
Result of:
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Adverse economic conditions
Aging entrepreneurs + skilled staff
Few new firms emerging to replace.
SME GI, MC Presentation May 2012 info@sbp.org.za
www.sbp.org.za
www.smegrowthindex.co.za
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
chris@sbp.org.za