South Africa's SMEs going strong
ConsultingWeb.co.za reports on the SME Survey 2008, that polled some 5 000 SME decision-makers on a range of issues relating to their competitiveness, performance and the business enabling environment:
The survey shows that South Africa’s SMEs have held up remarkably well. That’s according to principal researcher Arthur Goldstuck, who says rising fuel prices, inflation spikes, interest rate hikes, and infrastructural challenges such as crime and power outages have combined to dramatically change operating conditions for all businesses.
“Despite this deluge of new problems, SME Survey 2008 shows that while these businesses are feeling the pressure, most are generally well-equipped to cope.”
Amrei Botha, head of SME propositions at Standard Bank, says that most SMEs provide goods and services to end consumers. Hence as consumers come under pressure due to rising fuel prices, inflation and interest rates, SMEs are faced with a decline in both the volume and value of their sales. It is therefore critical for SMEs to manage their debtors more carefully and rigorously in these economic times. Proper invoicing, keeping track of outstanding payments and putting a collection process in place will go a long way to ensure that SMEs regularly collect payments from their clients.
“SMEs should constantly strive to improve their cash flow – it should be a way of doing business and not a once off event when the business is under pressure,” she says.
Danny de Beer, Business Development Director at Fujitsu Siemens Computers notes that the turmoil compels SMEs to review their efficiency and performance. “We see many SMEs looking to increase their efficiency and optimise their performance with many finding the benefits of new technology which allows them to optimise their processes and to respond more rapidly to market forces. This not only makes them more resilient in these challenging times, but also ensures that these businesses will be more favourably positioned for the long-term correction in the economy.”
Contact us for a meeting without any further obligations to see how we can review one or some of your most critical processes to become more agile in this turmoil economic period.
The survey shows that South Africa’s SMEs have held up remarkably well. That’s according to principal researcher Arthur Goldstuck, who says rising fuel prices, inflation spikes, interest rate hikes, and infrastructural challenges such as crime and power outages have combined to dramatically change operating conditions for all businesses.
“Despite this deluge of new problems, SME Survey 2008 shows that while these businesses are feeling the pressure, most are generally well-equipped to cope.”
Amrei Botha, head of SME propositions at Standard Bank, says that most SMEs provide goods and services to end consumers. Hence as consumers come under pressure due to rising fuel prices, inflation and interest rates, SMEs are faced with a decline in both the volume and value of their sales. It is therefore critical for SMEs to manage their debtors more carefully and rigorously in these economic times. Proper invoicing, keeping track of outstanding payments and putting a collection process in place will go a long way to ensure that SMEs regularly collect payments from their clients.
“SMEs should constantly strive to improve their cash flow – it should be a way of doing business and not a once off event when the business is under pressure,” she says.
Danny de Beer, Business Development Director at Fujitsu Siemens Computers notes that the turmoil compels SMEs to review their efficiency and performance. “We see many SMEs looking to increase their efficiency and optimise their performance with many finding the benefits of new technology which allows them to optimise their processes and to respond more rapidly to market forces. This not only makes them more resilient in these challenging times, but also ensures that these businesses will be more favourably positioned for the long-term correction in the economy.”
Contact us for a meeting without any further obligations to see how we can review one or some of your most critical processes to become more agile in this turmoil economic period.
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