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Construction
ALTHOUGH DIFFERENT SECTORS
were exposed to and impacted in different ways to the extensive changes of the COVID19 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 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 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 (56%), easier access to credit (56%) and better data and insights (52%), as the top drivers for growth. This highlights opportunities for small businesses that arise from both internal transformation as well as industry regulations and trends.
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.
“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 we 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.
SMEs 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.
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 cashfree 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 cashfree 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%).
As consumer trends evolve in a postpandemic world, businesses must adapt and prepare for the future.
Consumer passion for the environment is also growing, with 7 in 10 believing it is 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. ■
