SA businesses doubly bullish
10 June 2004
A recent survey of 250 South African businesses has found that local business owners are more than twice as confident about their economic prospects as they were last year - and the fourth most optimistic in the world.
Consulting firm Grant Thornton's International Business Owners Survey 2004 finds that business owners in most countries are confident about their respective countries' economic prospects for the year ahead. But only India (83%), Australia (81%) and the US (78%) beat South Africa (72%) in the business confidence polls.
According to the survey, the global business optimism "balance" - the difference between the proportion of optimistic and pessimistic businesses - is 39%.
At the other end of the scale, the survey found that Japanese, Polish and Singaporian business owners are extremely negative, scoring -30%, -32% and -46% on the optimism balance.
Grant Thornton says some of the reasons for South Africa's optimistic
business climate are the rand's upswing and stabilisation, the drop in inflation and interest rates, and the fact that South Africa was left relatively unscathed by the most recent global economic slowdown.
The survey found that South African business owners believe that with more countries showing interest in trading with South Africa, it is now a credible player in the global market. At the same time, they believe that local consumers have higher disposable incomes than in previous years.
Grant Thornton's annual IBOS survey involves 6 900 business owners in 26 countries, including 250 business owners in South Africa. It represents a broad range of industry and commercial sectors, with 80% of the business surveyed being privately owned.
SouthAfrica.info reporter
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