Optimism beats pessimism in SA business
Thématique :
sud afrique
Friday, 16 January 2009
The Grant Thornton consultancy group released a survey showing that South African owned businesses are the 6th most optimistic in the world for 2009.
Last year South Africa was ranked 9th of the 36 countries surveyed in Grant Thornton’s 2009 International Business Report, which assesses private business expectations for the year ahead.
In South Africa, 35% of privately held businesses are more optimistic than pessimistic about 2009 (compared to 75% in 2008); with a consensus that falling consumer demand and the shortage of business credit are the biggest demands facing privately held businesses.
In comparison 46% of private business owners in Japan are more pessimistic than optimistic about the coming year.
Within the context of the survey, South Africa is one of the only countries that continues to remain optimistic about growth in business areas, such as selling prices, turnover, profitability, exports and employment.
Within South Africa, the most optimistic province is Gauteng at 40%. Gauteng also reported the highest expectations for increased employment at 21%.
“Despite the slump in optimism, there are still pockets of hope in the South African marketplace and it is no coincidence that privately held businesses are some of the first to realise this,” said National Chairman of Grant Thornton Leonard Brehm.
“While privately held businesses worldwide are preparing for a prolonged and painful downturn real opportunities exist, especially in South Africa.’’
Dennis Dykes, Chief Economist of the Nedbank Group, says that the results of the survey are not surprising. “Sentiment around the world has turned overwhelmingly negative as the effects of the financial crisis started becoming apparent. South Africa has been relatively shielded by a healthy banking system as well as the fixed investment boom ahead of the FIFA 2010 World Cup. Additionally, the 2010 event should continue to soften the effects of the global crisis, and lower interest rates and oil prices should help a modest recovery in the second half of the year.”
South African business expectations saw marginal declines in selling prices (down from 64% in 2008 to 60% in 2009) and exports (down 25% to 20%).
There were more dramatic declines in employment expectations (down from 43% to 11% year-on-year) and profitability (down from 53% optimistic in 2008 to 21% in 2009).
South Africa is not alone in being optimistic about 2009. Botswana is the only other sub-Saharan country which participated in the IBR 2009, and the country’s business optimism soared from 66% in 2008 to 81% in 2009. This ranked Botswana as the second most optimistic country in the survey, behind India, and the country whose business optimism levels increased the most from 2008.
The Grant Thornton consultancy group released a survey showing that South African owned businesses are the 6th most optimistic in the world for 2009.
Last year South Africa was ranked 9th of the 36 countries surveyed in Grant Thornton’s 2009 International Business Report, which assesses private business expectations for the year ahead.
In South Africa, 35% of privately held businesses are more optimistic than pessimistic about 2009 (compared to 75% in 2008); with a consensus that falling consumer demand and the shortage of business credit are the biggest demands facing privately held businesses.
In comparison 46% of private business owners in Japan are more pessimistic than optimistic about the coming year.
Within the context of the survey, South Africa is one of the only countries that continues to remain optimistic about growth in business areas, such as selling prices, turnover, profitability, exports and employment.
Within South Africa, the most optimistic province is Gauteng at 40%. Gauteng also reported the highest expectations for increased employment at 21%.
“Despite the slump in optimism, there are still pockets of hope in the South African marketplace and it is no coincidence that privately held businesses are some of the first to realise this,” said National Chairman of Grant Thornton Leonard Brehm.
“While privately held businesses worldwide are preparing for a prolonged and painful downturn real opportunities exist, especially in South Africa.’’
Dennis Dykes, Chief Economist of the Nedbank Group, says that the results of the survey are not surprising. “Sentiment around the world has turned overwhelmingly negative as the effects of the financial crisis started becoming apparent. South Africa has been relatively shielded by a healthy banking system as well as the fixed investment boom ahead of the FIFA 2010 World Cup. Additionally, the 2010 event should continue to soften the effects of the global crisis, and lower interest rates and oil prices should help a modest recovery in the second half of the year.”
South African business expectations saw marginal declines in selling prices (down from 64% in 2008 to 60% in 2009) and exports (down 25% to 20%).
There were more dramatic declines in employment expectations (down from 43% to 11% year-on-year) and profitability (down from 53% optimistic in 2008 to 21% in 2009).
South Africa is not alone in being optimistic about 2009. Botswana is the only other sub-Saharan country which participated in the IBR 2009, and the country’s business optimism soared from 66% in 2008 to 81% in 2009. This ranked Botswana as the second most optimistic country in the survey, behind India, and the country whose business optimism levels increased the most from 2008.
