The top strategies for mid-market businesses over the next 12 months are increasing customer loyalty and reducing operating costs, according to new research from The Sage Group.
As confidence for mid-market companies reaches new highs, businesses are planning for growth by also focusing on their product and services portfolios and marketing.
The research found that 71% of South African businesses anticipated a growth in turnover over the next 12 months. More than half (60%) also said they would increase the number of people employed by their company over the next 12 months.
The survey found that on all confidence indicators, mid-market businesses were upbeat about their prospects. Mid-market businesses were most confident about their own prospects, which scored a global average of 68.90 out of 100, an increase of 3.08 points on last year. The prospects for their country's economy scored a global average of 55.23, an increase of 2.04 points on last year. While the prospects for the global economy scored a global average of 55.86 an increase of 3.45 points on last year.
Mid-market businesses that were already exporting said they were optimistic about the year ahead. Sixty-five percent of South African export companies in the mid-market expect export turnover to increase over the next year, while the survey found 35% of South African mid-market businesses saw their levels of exports grow in the last year. But logistics costs (30%) and competition (32%) are the two main barriers to export expansion, according to the survey. To help them grow exports, mid-market businesses called for legislation changes by the government (33%) and for financial incentives (31%).
Jeremy Waterman, Managing Director for Sage ERP Africa, said: "The survey brought out interesting anomalies in the South African market - businesses in SA have the least confidence of any of the countries surveyed in the growth of their own economy, and yet they are second only to the USA in confidence in the growth of their own companies, and rank third highest in being likely to increase the number of people employed, behind only the USA and Malaysia. Our survey also showed that mid-market companies see themselves as more risk-taking - and I think that taking calculated risks in a time of confidence will be a key for the next year. It is notable how optimistic exporting mid-market companies are.
"Confidence is rising and now is the time for mid-market businesses to think about strategies for growth. Thinking about serving customers better in 2015 is a great way to start. At Sage, we believe that mid-market companies are the unsung heroes of our economy. They are a fertile breeding ground of innovation and growth, yet are often overlooked by policy-makers. We are focused on supporting this sector of business in their growth ambitions and we are looking forward to helping them further in 2015," he added.
Share