Arthur Goldstuck, principal researcher for SME Survey, notes that the economic landscape in South Africa has changed dramatically in just six months. “From a buoyant economic climate and abundant availability of credit, from a relatively reliable and stable power supply and the assurance that the water from the tap is arguably the best in the world, companies today find themselves cash strapped,” he says.

“In examining the infrastructure challenges which business must today cope, we are referring to the physical environment in which the SME operates. This includes roads, electricity, traffic lights and congestion, transport costs and more. These elements are changing in front of our very eyes and all have an impact on how the SME is likely to perform,” says Goldstuck.

SME Survey 2008 will strongly focus on infrastructure owing to the crisis which is created by load shedding and which has highlighted the lack of planning in certain key infrastructural areas, Goldstuck continues, with research intending to measure the impact from the point of view of the SME.

“We will look at the ability of the SME to deal with these new rules of doing business. Questions that must be asked include the impact that load shedding has had on profitability and competitiveness. Methods of coping with these problems, such as the purchase of laptops or 3G connectivity, will also be explored,” says Goldstuck.

Among the new rules of doing business is the issue of crime. “Government does not need to be told that crime is reaching crisis levels; however, there is a perception that crime against businesses is faceless. It is not. The business owners are people, and crime has a material impact on them and their ability to run a competitive and profitable operation,” Goldstuck says.

According to Scott Gilmour, Head of Customer Strategy for Personal and Business Banking at Standard Bank, small business are impacted by infrastructure challenges.  

“However it would be incorrect to imply that the current economic environment is placing significant stress on all small and medium-sized businesses.  Consumer-dependent businesses are more susceptible in the current economic environment as consumer spending comes under pressure, but in general it is reassuring to see that businesses have been holding up fairly well, “says Gilmour.

“Participation in research initiatives such as the SME Survey helps Standard Bank better understand the changing needs of small businesses as they adapt to infrastructure challenges. This increased understanding assists us in developing relevant solutions and disseminating value-added business and banking information that support our business clients, “ adds Gilmour.

Danny de Beer, business development director at Fujitsu-Siemens Computers says: “The questions which this year’s Survey asks are hard-hitting, but there is no question that business, big and small, has been hard hit by changing circumstances,” says Danny de Beer, business development director at Fujitsu-Siemens Computers. “The SME has to deal with a new set of challenges that arguably threaten their ability to survive and prosper. Knowing how these issues are affecting business, and how they are coping, is essential.”

Goldstuck notes that many of the issues raised by the SME Survey have been addressed which is rewarding. The research and its findings can have an influence. “We do ask questions that evaluate how well government is serving the SME. It is reassuring to see the restructuring of and rethinking behind many government support programmes.”