Johannesburg - Self-employment boosted business activity in the second quarter of this year, according to the Absa SME Index. This was despite weak economic conditions, constrained electricity supply and high costs due to inflation.
Barclays Africa head of enterprises and supply development KeaObaka Mahuma said: "While this is good news, it can be even better news if these self-employed can grow their businesses and employ others in the process.
"More likely, it is a survival method at present with many working age people not able to find employment, and so they take up survivalist enterprises to help make ends meet."
The Absa SME Index tracks businesses that are either run by self-employed people or by actual employers.
The index increased by 2.4% year-on-year. However, on a quarter-on-quarter basis it was up by a marginal 0.3%.
The number of employees rose by 3.7% in the second quarter. On the other hand, the number of self-employed individuals went up by 6.4%, compared to the second quarter last year.