In addition to its existing indices that provide information on South Africa’s business landscape, the South African Chamber of Commerce and Industry (Sacci) and Absa have announced a new index focusing on small- and medium-sized enterprises (SMEs).

The findings of the inaugural Absa/Sacci Small Business Growth Index will be announced in the coming weeks.

The research will be conducted by the Bureau of Market Research, measuring the perceptions of small business owners and managers around business growth, prevailing conditions and challenges, as well as future prospects and the support required to facilitate the growth of this sector.

The Small Enterprise Development and Finance Agency estimates that SMEs account for up to 70% of employment in South Africa, making them a key driver of job creation in the economy, as well as instrumental role-players in advancing diversity, inclusion and empowerment.

The agency cites the top concerns of small business owners at the moment as being inadequate capital, infrastructure breakdowns and managing cash flow. Generally, SMEs are also concerned about economic uncertainty, slow growth and power outages.

“Given the critical role that SMEs play in supporting communities and enabling economic growth, the initiative is aimed at providing in-depth insight into the SME ecosystem to enable stakeholders across the private and public sectors to implement solutions and interventions that would enhance the operating environment for these businesses,” Sacci and Absa state.

Absa, in particular, hopes the new index will create a platform for dialogue and collaboration that can enable job creation and catalyse more entrepreneurial innovation.

The bank has reportedly always been committed to enabling SMEs to fulfil their potential and actively supported initiatives that foster sustainable growth in this sector.

“Together, we aim to create a lasting legacy project that will provide South Africa, for the first time, with academically rigorous research and clear insights. This will serve as a reliable platform for decision-makers in both the private and public sectors, enabling them to achieve critical objectives,” Sacci comments.