One in six adults owns a small firm

Johannesburg - One in six adults in SA is a small business owner, according to FinScope SA's Small Business Survey for 2010.

Released on Friday, the survey also indicated that two-thirds of these businesses did not employ anyone other than the business owners, and 79% were involved in product sales.

"Woman are more likely to be small business owners, although small businesses owned by men are more likely to render services and to employ other people," the survey found.

Two-thirds of small business owners needed start-up money and most of these funds came from own sources, with 37% claiming to have borrowed from other sources.

Only 5% of small business owners claimed to have current borrowing or loans for the business, and 39% claimed to save for business purposes.

The survey found a "significant opportunity" for innovation in the banking sector to meet the needs of the small business owner.

"Another area is basic business banking similar to the Mzansi type account which allows for multiple deposits."

Affordability was a key barrier to the take up of insurance, with over 50% of small business owners saying they could not afford it. Only 45% of respondents agreed insurance was important for their businesses, suggesting business owners did not really see a need for such products.

ZAR/USD
17.17
(-0.96)
ZAR/GBP
22.47
(-0.79)
ZAR/EUR
20.22
(-0.84)
ZAR/AUD
12.24
(-0.65)
ZAR/JPY
0.16
(-0.90)
Gold
1975.66
(-0.27)
Silver
24.30
(-0.46)
Platinum
919.76
(+2.03)
Brent Crude
43.61
(0.00)
Palladium
2082.00
(+1.21)
All Share
55829.40
(+0.19)
Top 40
51571.71
(+0.40)
Financial 15
9805.08
(-3.46)
Industrial 25
74738.74
(+0.31)
Resource 10
56585.24
(+1.85)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 817 votes
It depends on how the funds are used.
74% - 5406 votes
No. We should have gotten the loan elsewhere.
15% - 1080 votes
Vote