SMEs expect no 2010 windfall

Johannesburg - Small business expects no World Cup windfall next year, even though its expectations for the country as a whole are overwhelmingly positive.

That's one of the key findings of SME Survey 2009, which gauged expectations of the event among 2 500 small, medium and micro enterprises. SME Survey is in its seventh year and polls SME decision-makers on the issues they face.

Principal researcher Arthur Goldstuck says 86% of SME owners believe that the World Cup will be positive for the country. "However, whether this benefit to the nation will filter down to the individual SME is more difficult to say. FIFA is known for its zealous protection of the rights of its sponsors to do business in zones surrounding match locations and therefore, to a large extent, excludes the participation of 'outside' organisations."

The smallest SMEs are the most positive. Of those with annual turnover below R150 000, 93% are positive. "Either they've seen a gap they will take advantage of, or they have unrealistic expectations," Goldstuck says.

Since sponsorships are far beyond the means of any SME, it does render direct benefit practically impossible. SMEs are well aware of this; just 45% believe the event will benefit their business directly. Goldstuck continues: "Visitors to the event are very likely to do more than just attend matches. That allows for some spill-over of benefits."

Interestingly, when considering regional impact, the most confident is Limpopo province. "The Peter Mokaba Stadium in Polokwane serves as a beacon of hope for many. It is relatively a lot more significant for Limpopo than, for example, the facility in Green Point is to the Western Cape, since it is just one of many tourist attractions in Cape Town."

In Limpopo and the Eastern Cape, 88% of respondents are positive, while in the Western Cape it is 86% and Gauteng 84%. "In Gauteng, people are as aware of the disruptions as they are of the games," Goldstuck remarks.

Similar figures to that of Gauteng emerges from Mpumalanga and KwaZulu-Natal. "Again, there is a lot of activity in these provinces; the World Cup is a major development for them, but amid ongoing development that is happening regardless."

Surprisingly, the Free State and North West province come in far lower, at 81% positive. "That is still overwhelmingly enthusiastic, but SMEs in these regions are less likely to believe there will be any benefit from the event," Goldstuck notes.

- Fin24.com