74 Pc Of Africa, Middle East SMEs Optimistic About Growth In A Year
September 1, 2021 | 6:16 am
NAIROBI, Kenya, Aug 30– More than 70 percent of Small and Medium Enterprises (SMEs) in the construction and manufacturing sector in the Middle East and Africa are optimistic about business improvement and performance in the next 12 months, a survey conducted by Mastercard Middle East and Africa (MEA) has revealed.
The study conducted between the end of March and the end of April revealed that confidence levels were highest among businesses in retail followed by food, beverage, and entertainment.
It was conducted among 300 respondents per country in Kenya, Nigeria, Ivory Coast, and South Africa and 100 respondents per country in Egypt, United Arab Emirates (UAE), and the Kingdom of Saudi Arabia (KSA).
The SME Confidence Index noted that SMEs in Construction and manufacturing fields had the best forecasts, with 76 percent of them projecting their revenues will either grow or hold steady and another 50 percent projecting an increase.
The businesses under study identified upskilling staff and easier access to credit as the top drivers of growth at 56 percent each while better data and insights were rated 52 percent.
“This highlights the opportunities for small businesses that arise from both internal transformations as well as industry regulations and trends,” the survey added.
However, 54 percent of regional SMEs highlighted that the challenge to maintain and grow their business remained a major concern.
“Looking at concerns over the next 12 months, sixty percent identified the rising cost of doing business, while 47 percent cited access to capital,” it added.
Other concerns raised include maintaining current staff levels (47%), training and upskilling staff (44%), finding the right talent for new needs (39%), and mental and physical wellbeing (39%).
“This highlights the growing trend around the development of people as a key theme for small business success,” the survey added.
Fifty-five of the businesses noted that they needed support in help managing or upskilling teams and access to a wider range of financial services while another 54 percent said they needed effective regulatory support from the government.
The survey was conducted among 1,533 SME decision-makers through telephone or face-to-face interviews.