South African businesses are optimistic about growth prospects, and had one of the highest increases in employment rates in the world last year.
This is according to a global business owners` survey undertaken by accounting and consulting organisation Grant Thornton.
The Grant Thornton International Business Owners` survey (IBOS), conducted among 6 000 businesses in 19 countries, found that SA`s business owners are highly optimistic about growth prospects. More than 80% of the country`s business owners believe that turnover for their businesses will increase substantially in the coming year. This is in contrast with the rest of the world - particularly G8 countries - where business owners have generally expressed concern and pessimism.
Leonard Brehm, national chairman of Grant Thornton, says local firms expect employment to rise in the next 12 months as a result of improved business activity.
The survey found that 58% of South African companies experienced an increase in employment last year, the highest in the world, with a mere 9% recording declines in head count.
While the outlook for local businesses looks rosy, with borrowing rates set to come down, Brehm says local managers are concerned about the impact HIV/AIDS and black economic empowerment (BEE) might have on their companies.
"SA is already feeling the heat as more people are taking sick leave because of AIDS-related illness," adds Brehm. According to the survey, 78% of respondents said that HIV/AIDS will impact negatively on their bottom line. Furthermore, the survey indicates that only 50% of South African business owners regard BEE as an important issue in running their businesses.
The survey also found that 25% of South African business owners expect a change of ownership within the business over the next 10 years, with merger the most commonly considered option.
SA lagged behind other countries in its exports, and SA business owners cited bureaucracy, red tape and regulations as major barriers to international expansion. Finding representation in other countries, lack of knowledge of markets and political instability also featured as stumbling blocks.
Grant Thornton Kessel Feinstein has launched an IBOS Web site, where business owners can benchmark their opinions against their peers in SA, or against other businesses globally.
Share
