29 August, 2021
Dubai Observes Increasing Confidence Levels among SMEs
Latest research by Mastercard shows that confidence levels of small and medium enterprises (SMEs) in the region is increasing, with the retail segment most promising.
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 of growth driven by the up-skilling of staff, easier access to credit and better data and insights.
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.
The report emphasized that retail sector confidence was the highest. This was closely followed by other sectors such as food, beverage and entertainment. The best forecasts came from construction and manufacturing, with over 76% companies in these sectors expressing that their forecasts will either stay the same or may grow. Nearly 50% companies in the sector also projected their forecasts to grow.
The report noted that as many regional economies gradually enter the normalization and growth phase, and social restrictions continue to ease, SMEs have identified some key drivers for growth. These include up skilling staff (56%), easier access to credit (56%) and better data and insights (52%).
The area where most construction and manufacturing businesses in the region say they now need support, is in help managing or up skilling teams (55%). SMEs in this sector also want access to a wider range of financial services (55%) and effective regulatory support from the government (54%).
This highlights the opportunities for small businesses that arise from internal transformation as well as industry regulations and trends.
Are you looking to transform your business digitally? Do you wish to leverage the positive outlook in this space for better business growth?
Get a free consultation with us to explore the possible ways by which we can act as catalysts for your business success.
Source: Khaleej Times