Absa, Sacci launch inaugural SMME index

Absa, in collaboration with the South African Chamber of Commerce and Industry (Sacci), has initiated a groundbreaking study to establish the Small Business Growth Index (SBGI) aimed at evaluating the progression and growth of small and medium-sized enterprises (SMMEs) in South Africa. This significant undertaking is anticipated to serve as a pivotal tool in fostering employment opportunities across the country. Joining CNBC Africa for further insights on this game-changing initiative is Ronnie Mbatsane, Managing Executive for SME Business at Absa Business Banking. In a compelling discussion, Ronnie Mbatsane shed light on the inspiration behind the collaboration between Absa and Sacci in the development of the SBGI. He emphasized Absa's steadfast commitment to supporting the growth and advancement of small businesses and the critical role the financial institution plays in this sector. The strategic partnership with Sacci and the Bureau for Market Research is envisioned to provide invaluable insights that can empower and uplift the vast number of small and medium enterprises, which are pivotal contributors to employment in South Africa. The SBGI is anticipated to delve into an array of significant factors including access to finance, prevailing economic challenges, and the dynamics between formal and informal SMEs. By amalgamating robust data and insights from various sources, including academic research and input from the Chamber of Commerce, the SBGI aims to present a comprehensive overview that can benefit not only Absa and Sacci but also governmental bodies, public entities, and incubators within the entrepreneurial ecosystem. Absa's data collection methodology for the SBGI is designed to leverage the institution's extensive customer base, particularly within the small business sector, to draw rich and meaningful insights. The partnership with expert entities like the Bureau for Market Research and Sacci is expected to yield tangible outcomes that can offer solutions to the key challenges facing SMEs in the South African market. Reflecting on the resilience demonstrated by SMEs, particularly amidst the challenges posed by the COVID-19 pandemic, Mbatsane highlighted the importance of addressing critical issues such as access to finance and the capacity for SMEs to compete and survive in the business landscape. These observations will play a crucial role in shaping Absa's interventions and support mechanisms post the SBGI findings. The forthcoming SBGI findings are poised to inform Absa's strategies in streamlining lending processes, enhancing liquidity support, and adapting lending criteria to better suit the needs of SMEs. The publication of the data in the coming weeks will not only benefit Absa but also extend its implications to a broader spectrum, including other financial institutions and development finance entities seeking to empower small businesses. While the exact release date of the SBGI remains undisclosed at present, Mbatsane indicated that the initiative was nearing completion, with a significant portion of the work already done. The anticipation surrounding the SBGI's launch underscores the eager wait for the valuable insights it is bound to unveil. Mbatsane underscored the potential impact of the SBGI on policymaking within the public sector, emphasizing the need for data-driven discussions with policymakers, governmental bodies, and the Department of Small Business. The SBGI is expected to equip stakeholders with substantial ammunition to advocate for policy enhancements, incentives for small businesses, and relief measures that can bolster the participation of SMEs in the economy. As the anticipation for the SBGI's release mounts, the collaborative efforts between Absa and Sacci stand as a testament to the commitment towards fostering economic growth and creating a conducive environment for the thriving small business landscape in South Africa.