Looking towards the upturn

Privately held businesses in South Africa are hopeful that the worst of the recession is behind them. This is one of the key findings in the 2010 Grant Thornton International Business Report (IBR). The global optimism / pessimism index indicates an optimism balance of +60% compared to +35% this time last year – the optimism balance being the proportion of businesses reporting they are optimistic less those reporting they are pessimistic.

“South African business owners are certainly looking towards the coming 2010 FIFA World Cup year  and its associated rewards with renewed optimism,” says Leonard Brehm, national chairman of Grant Thornton South Africa.

 

The IBR survey, now in its 8th year, covers 7 400 privately held businesses across 36 economies and 10 industry sectors. Privately held businesses include entrepreneurial businesses, family businesses and non-listed entities, which account for over 98% of businesses worldwide and 81% of global GDP. The survey indicates that 26% of South African business owners expect an upturn during the first half of 2010 and 33% are looking to the second half of the year. In comparison, global statistics indicate a turnaround in the second half of 2010 (34%) or during 2011 (23%).

In South Africa, business owners still see the lack of availability of a skilled workforce as the major constraint (34%) on business growth, as has been the case for four consecutive years. Although this figure is lower than 2009’s 41% Brehm notes that this is probably due to the recession causing a slightly reduced demand for skills.

By contrast, globally, this factor is considered far less of a constraint (21%). In the global view, the biggest constraint on business is seen to be reduced demand and a shortage of orders.

Where the South African and global trends concur is in the view that overregulation and red tape is the second biggest restrictor to business expansion (all at 32%).

Despite these concerns, the IBR 2010 data indicates that businesses worldwide are more optimistic and feeling less constrained than they were 12 months ago. “Business owners focus for the year ahead will shift to long-term growth and stability,” says Brehm.

Previous story
keyboard_arrow_upQuality in motion
keyboard_arrow_downQuality in motion

The Vista Duo from Hillaldam Sliding Door Systems is the first bottom rolling hardware for even folding weatherproof aluminium doors

Next story
keyboard_arrow_upSupplying clean water to remote communities
keyboard_arrow_downSupplying clean water to remote communities

More than 1 200 PlayPump systems already installed in rural parts of South Africa, Mozambique, Lesotho, Swaziland and Zambia, are, with the power of children’s play, bringing clean water to about two million people. By 2010, the combined efforts of PlayPumps International  and the international organisations or individuals that fund the set-up of the PlayPump systems aim to have installed 4 000 pumps in 10 countries in Sub-Saharan Africa, making clean drinking water accessible to up to 10 million people. Expansion over the next few years will see PlayPump systems in Ethiopia, Kenya, Malawi, Tanzania, and Uganda.

keyboard_arrow_upExploring resilience and innovation at AZA18
keyboard_arrow_downExploring resilience and innovation at AZA18

From 3-5 May 2018, #AZA18 will be exploring the journey towards sustainable, adaptive and integrated cities that can respond to growing social, economic and environmental challenges, under the theme ‘WeTheCity: Memory & Resilience’.

keyboard_arrow_upSmall businesses to benefit from ground-breaking new partnership
keyboard_arrow_downSmall businesses to benefit from ground-breaking new partnership

In a landmark partnership for collective economic growth in South Africa, the Department of Small Business Development (DSBD) is joining forces with Property Point, a Growthpoint Properties initiative, to develop more small businesses for South Africa’s property sector.

keyboard_arrow_upHow to personalise your kitchen or bathroom
keyboard_arrow_downHow to personalise your kitchen or bathroom

Share Want to upgrade your bathroom or kitchen? Need to match your taps to your state-of-the-art coffee machine? Now you can, and at a very reasonable price too. ISCA has introduced trim kits for taps that add a pop of colour to kitchens or bathrooms. And best of all, if you wake up one morning […]