This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more hereX

Home > News > Latest News > Majority of South African SMEs predict growth in 2017

Latest News / Majority of South African SMEs predict growth in 2017

 

In a report on the state of South Africa’s (SA) small business sector, 58% of SMEs reported that they expect to grow in 2017, reflecting an optimistic outlook for business ownership. 29% of those interviewed expect to stay the same, while 12% are forecast to shrink in the coming 12 months.

400 small business owners across 22 sectors were interviewed to identify trends in SA businesses, in the report produced by Xero, which also built a profile of start-ups and the challenges they face.

63% of entrepreneurs taking part used personal savings to start-up, whilst 20% turned to family or friends for a loan. 27% reported that gaining access to finance was the biggest challenge they faced when starting their business, while 6% received investment from venture capitalists.

Almost two thirds (62%) started their business with less than R100,000 (US $7,387) and only 4% reported start-up costs of more than R1,000,000 (US $73,870).

The report also offers an insight into the values of entrepreneurs in SA. In response to the question ‘which factors are crucial to being a successful business owner?’: 27% said taking time off for themselves and their family; 23% said marketing training; 18% said personal resilience; and, 15% said management training.

You can read the full state of South Africa small business report here.

 


 

Majority of South African SMEs predict growth in 2017
Menu
-
Increase Font Decrease Font