Some Interesting Business Facts for SA Entrepreneurs:

The South African Research Group – World Wide Worx – has released its 2016 State of SA Small Business Report, showing just what the small business sector of SA is facing. 400 Small businesses were surveyed across 22 sectors of SA. Here are some interesting findings:

 

1. Initial business start up costs are less than R100 000

The initial start-up funding required was below R100,000 for more than 60% of businesses surveyed, with only 4% raising more than R1,000,000 according to the report.

2. Small businesses are mostly self funded

63% of small business owners reported that they made use of their personal savings, while 20% found investment or a loan from alternative sources (family, partner etc.) Only 6% turned to venture capitalists or angel funding.

3. Small businesses are very successful

More than 90% of businesses surveyed said that they were profitable, with 37% saying they were profitable from the start. More than 75% of business owners believe they are making more money than they would have working for someone else.

4. Small businesses embrace technology

More than 66% of small business owners said that technology was very important or essential for their business operations, with smart devices and apps making their lives and the running of their businesses easier. Only a small portion of businesses generate income online (less than a third), though, with about half of businesses opting for traditional brick and mortar.

5. Small and Medium Enterprises are optimistic about the economy

Small business owners were very bullish about the SAn economy, with about 58% expecting the country’s economy to grow rather than dwindle in the next year (only 12% were of the opinion that the economy would shrink). Economic growth was the thing businesses were most looking forward to, and along with it, increased consumer demand and possible tax breaks from the SA government.

6. Running a business means little time off 

The vast majority of business owners (95%) said they worked more than 8 hours a day, with 27% saying they never take time off, working 7 days a week for the whole year. Only 4% of of business owners said they worked less than 8 hours a day.

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