AS THE lockdown regulations, tightened by President Cyril Ramaphosa on Sunday, continue to put pressure on small, medium and micro enterprises (SMMEs) financially and operationally, 6 in 10 business owners said they were proactively planning for and anticipating growth in the next year.
This is according to the Mastercard SME Index released yesterday, which surveyed 300 SMMEs in South Africa between April and last month.
While 84 percent of South African SMME owners said the pandemic has negatively impacted their revenue, looking forward, 79 percent were projecting that their earnings will either hold steady or grow in the next year.
According to the index, about 39 percent of SMMEs were worried about being “able to maintain and grow their business”, while 29 percent expressed concern about staying in business or going bankrupt.
Looking ahead at the next year, three-quarters identified the rising cost of doing business as their biggest concern, while 63 percent cited red tape and regulations, and 51 percent mentioned access to capital.
A little over half of the SMME owners polled identified upskilling staff for the future as the top area that would offer their businesses the highest potential to grow. This was closely followed by better data, analytics and insights, at 57 percent of respondents.
Digitising business operations, sales and administration, at 53 percent, came in as the third potential driver of growth, followed by the acceptance of digital payments across multiple channels (48 percent).
This omni-channel approach was an important consideration for all businesses, because in May Mastercard’s New Payment Index found that 95 percent of South African consumers would consider using at least one emerging payment method in the next year – contactless, QR codes, biometrics or cryptocurrency.
Suzanne Morel, Mastercard’s South Africa country manager, said: “SMMEs continue to demonstrate strength and agility, despite Covid-19 where they’ve had to navigate lockdowns, restricted supply chains and the changing habits of an evolving consumer. While several challenges remain, it’s encouraging to see how SMMEs are transforming the way they do business to benefit from the secure technology and convenient payments solutions that are shaping commerce.”
“For many small businesses, reducing their dependence on cash through digital payments acceptance has played a major role in being able to get paid and maintain revenues,” she said.
Morel said the group was committed to connecting SMMEs to the tools, training and insights they needed to survive and thrive now and in the future. As part of this commitment, Mastercard announced it was pledging about R3.5 billion to connect 50 million SMMEs globally to the digital economy by 2025, using its technology, network, expertise and resources in support of the company’s goal of building a more sustainable and inclusive digital economy.
Morel said as part of these efforts, Mastercard was focused on connecting 25 million women entrepreneurs.
BUSINESS REPORT