74% Of SMEs In Construction And Manufacturing Across Middle East And Africa Optimistic About Future Growth



31-08-2021
Read : 78 times
Africa.com
Source

*74% of the region’s small and medium businesses in construction and manufacturing are optimistic about the next 12 months, according to Mastercard MEA SME Confidence Index
*SME confidence levels were highest among businesses in retail, while construction and manufacturing had most businesses forecasting increases to steady revenues
*Research identified key areas with the greatest potential for growth with half of SMEs projecting an increase in revenues in the next 12 months



Although different sectors were exposed to and impacted in diverging ways to the extensive changes of the COVID-19 pandemic, Small and Medium Enterprise (SME) confidence across most sectors is on the rise, according to the latest research by Mastercard.



The inaugural Mastercard Middle East and Africa (MEA) SME Confidence Index found that 74% of SMEs in construction and manufacturing are optimistic about the next 12 months. Confidence levels were highest among businesses in retail, closely followed by food, beverage and entertainment. Construction and manufacturing had the best forecasts, with 76% of SMEs projecting revenues that will either grow or hold steady. Half (50%) are projecting an increase.



Access to training, credit and data key for future growth



As many regional economies gradually enter the normalization and growth phase, and social restrictions continue to ease, small and medium sized businesses in the MEA region’s construction and manufacturing sector have identified upskilling staff (56%), easier access to credit (56%) and better data and insights (52%), as the top drivers for growth. This highlights the opportunities for small businesses that arise from both internal transformation as well as industry regulations and trends.



Making sure that SMEs have all the support they need to go digital and grow digital is a key focus for Mastercard. The company works closely with the government, financial organizations and the wider business community to create opportunities for the small business sector.



Solutions that go beyond getting paid



For many small businesses, reducing their dependence on cash through digital payments acceptance, has played a major factor in being able to get paid and maintain revenues.



Mastercard offers technology, data-driven insights, consulting and predictive analytics solutions to empower businesses to acquire new customers, enhance customer loyalty and improve operations.



Mastercard has pledged $250 million and committed to connect 50 million micro, small and medium size businesses globally to the digital economy by 2025 using its technology, network, expertise and resources in support of the company’s goal of building a more sustainable and inclusive digital economy. As part of these efforts, Mastercard is focused on connecting 25 million women entrepreneurs.



“As manufacturing and construction businesses continue to build back better through a combination of digital transformation and people development, they are also encouraging other SMEs in this sector. At Mastercard will look forward to a seamless continuation of supporting the SME ecosystem, providing the payments technology infrastructure and wider business solutions that will spur wide, inclusive growth of the digital economy,” said Amnah Ajmal, Executive Vice President, Market Development, Middle East and Africa, Mastercard.



Rising costs and maintaining staff among concerns



When asked about the main thing that keeps them up at night, 54% of regional SMEs in construction and manufacturing mentioned the challenge to maintain and grow their business was their top issue. Looking at concerns over the next 12 months, six in ten (60%) identified the rising cost of doing business, while 47% cited access to capital.



From an operational perspective, concerns for the next year include maintaining current staff levels (47%), training and upskilling staff (44%), finding the right talent for new needs (39%) and mental and physical wellbeing (39%) – highlighting the growing trend around the development of people as a key theme for small business success.



Benefits of a cash-free economy



Growing confidence levels in digital as a business imperative, is tied to a deeper understanding and wider recognition among SMEs of the advantages that result from a growing digital economy. When asked about the biggest benefits of a cash-free economy to their businesses, SMEs in construction and manufacturing stated the ease of not processing cash (48%) and more convenient payment of suppliers and employees (47%).



The area where most construction and manufacturing businesses in the region say they now need support, is in help managing or upskilling teams (55%). SMEs in this sector also want access to a wider range of financial services (55%) and effective regulatory support from government (54%).



As consumer trends evolve in a post-pandemic world, businesses must adapt and prepare for the future. Late last year, a Mastercard study showed that 73% of consumers in the Middle East & Africa are shopping more online than they did since the start of the pandemic. Furthermore, new payments methods are gaining ground and 9 in 10 shoppers would consider making a purchase with an emerging payment technology over the next year, including cryptocurrency, biometrics, contactless, QR codes, digital wallets and wearables.



Consumer passion for the environment is also growing, with 7 in 10 believing it’s more important for businesses to do more for the environment, and 25% in the Middle East saying they would stop buying from businesses that do not behave sustainably.

Sign up for Free Daily Building and Construction News