ANXIETY levels around what the outcome of the 2024 South African elections would mean for small businesses were relatively low in the lead up to the May 29 polls.
This was one of the primary insights to emerge from the quarter one 2024 SME Confidence Index – a survey conducted by specialist SME financier Business Partners.
David Morobe, the executive general manager for Impact Investing at Business Partners, said: “Only 33% of small business respondents indicated experiencing heightened levels of anxiety around the elections and its potential impact on their operations.
“A further 19.5% reported feeling optimistic about the outcome of the elections. Overall, these findings point to a small business community that is determined to weather the storms that stand in the way of long-term success.
“The past few years have been incredibly tough for many businesses as they look to re-attain pre-Covid-19 levels of operations and revenue.”
SMEs’ confidence levels that their business will grow in the next 12 months was at 83%, up 5 percentage points from the previous quarter and up 12 percentage points year-on-year.
Similarly, SMEs’ confidence levels that the local economy will be conducive for business growth in the next 12 months was 69 % – up 9 percentage points from the previous quarter and up 13 percentage points year-on-year.
The biggest increase was seen in the confidence that business owners have that ease of access to business finance will improve in the next 12 months. At 67%, this was up by 10 percentage points from the previous quarter, and up 12 percentage points compared to quarter one 2023.
Given that cash flow and economic conditions remained two of the top three challenges faced by SMEs, this boded well for entrepreneurs looking to use finance as a stepping stone to success as they entered the highly competitive business arena, Morobe said.
He added: “Now, post-election, we look forward to the shifts that will undoubtedly take place as we recalibrate ourselves politically, socially and economically.
“On the whole, the SME ecosystem remains confident and optimistic about the country’s future. It remains for the government and political leaders to work together to create an environment that will enable SMEs to thrive.”
BUSINESS REPORT