- In the midst of the COVID-19 pandemic, six in 10 SMMEs in South Africa anticipate growth and are proactively planning for the future
- Upskilling staff for the future, access to data, analytics and insights, and digitising business operations offer highest growth potential for SMMEs
JUNE 28, 2021| Johannesburg, South Africa – As the COVID-19 pandemic continues to put pressure on Small, Medium and Micro-Enterprises (SMMEs) financially and operationally in South Africa, six in 10 business owners say they are proactively planning for and anticipating growth in the next year. This is according to the Mastercard SME Index, which surveyed 300 SMMEs in South Africa between April and mid-May 2021.
While the majority (84%) of South African SMMEs say that the pandemic has negatively impacted their revenue, looking forward however, 79% are projecting that their earnings will either hold steady or grow in the next year.
SMMEs in South Africa identified ‘upskilling staff for the future’ (58%) as the top area that offers the highest growth potential for their businesses, closely followed by ‘better data, analytics and insights’ (57%).
‘Digitising business operations, sales and admin’ (53%) came in as the third driver, followed by ‘the acceptance of digital payments across multiple channels’ (48%). This omni-channel approach is an important consideration for all businesses as last month’s New Payment Index found that 95% of South African consumers will consider using at least one emerging payment method in the next year, varying from contactless, QR codes, biometrics or cryptocurrency. In an increasingly connected world, the ability to ‘do business and transact internationally’ (48%) rounded out the top five drivers.
Ensuring that SMMEs have the support they need to go digital and grow digitally is a key focus for Mastercard. The company works closely with various stakeholders including the government and banking institutions to create solutions that will assist in the growth of SMMEs, which represent 98% of all businesses in South Africa.
Mastercard has pledged $250 million and committed to connecting 50 million micro, small and medium-sized businesses 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. As part of these efforts, Mastercard is focused on connecting 25 million women entrepreneurs. 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.
“SMMEs in South Africa 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 is encouraging to see how SMMEs are transforming the way they do business to benefit from the secure technology and convenient payments solutions that are currently shaping commerce. At Mastercard, our mission is to connect SMEs to the tools, training, and insights they need to survive and thrive now and in the future,” says Suzanne Morel, Country Manager for Mastercard, South Africa.
When asked about what keeps them up at night, 39% of SMMEs in South Africa mentioned being ‘able to maintain and grow their business’, while 29% are worried about staying in business or going bankrupt. Looking ahead at the next year, three-quarters (76%) identified the rising cost of doing business, 63% cited red tape and regulations, and 51% mentioned getting access to capital as their biggest business concern.
Private sector partnerships (84%), international government or business collaborations (56%), and government-led initiatives (44%) were identified as having the biggest potential to positively impact SMMEs and the wider South African market.
- Telephone or face-to-face interviews of 1,533 SME decision-makers in 7 countries in 3 regions (MENA, SSA & SA)
- Up to 300 respondents per country: Kenya, Nigeria, Ivory Coast and South Africa
- Up to 100 respondents per country: Egypt, UAE and KSA
- Research conducted in South Africa between the end of March to mid-May 2021; all other market research conducted between the end of March to the end of April 2021
- Nationally representative sample on SMME size
- Readable sample sizes of:
- Region clusters
- SMME size, years in business
- Gender & age of decision-taker
About Mastercard (NYSE: MA), www.mastercard.com Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships, and passion, our innovations and solutions help individuals, financial institutions, governments, and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
Communications Contact: Birgit.email@example.com
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