Property, retail sector SMEs optimistic about future growth, survey shows
As investors continue to feel the impact of Covid-19 pandemic economic shocks, a new research shows that small business owners are optimistic about the future.
Some 74 per cent of small and medium enterprises (SMEs) in the construction and manufacturing industry agree that if a crisis like the coronavirus pandemic were to happen again, they’d be better prepared to handle it.
This is revealed in a survey by MasterCard which shows that this category of business owners were optimistic about the next 12 months.
Additionally, the MasterCard Middle East and Africa (MEA) SME Confidence Index found confidence levels to be the highest among businesses in retail, closely followed by food, beverage and entertainment.
Out of this, 76 per cent of SMEs projecting revenues that will either grow or hold steady. About half, or 50 per cent are projecting an increase in returns.
“As many regional economies gradually enter the normalisation 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, easier access to credit and better data and insights as the top drivers for growth,” said Amnah Ajmal, the Executive Vice President, Market Development, Middle East and Africa at MasterCard.
Despite their crucial role in driving economic development, evidence suggests that SMEs experience a severe shortfall in financing, which has historically hindered their growth.