45% of African MSMEs boost sales through online platforms, survey reveals
53% use online advertising to enhance brand visibility, while 45% directly sell products and services online.
The survey also found that 36% use personal savings to tackle rising costs.
A recent study conducted across the African continent unveiled a notable shift in the strategies that Micro, Small, and Medium Enterprises (MSMEs) embraced.
According to the survey, 45% of these businesses are effectively driving their sales by harnessing the power of online platforms.
This survey, jointly executed by GeoPoll, Africa 118, and the African Talent Company, took a deep dive into the practices and approaches adopted by MSMEs spanning various industries and countries.
The aim was to discern how these enterprises are tapping into the potential of the digital realm. The findings provide valuable insights into the evolving dynamics that underpin their operations.
When asked about their assessment of the business environment, a substantial 55% of the surveyed businesses noted improvements in their country’s business climate compared to the preceding year.
Only Nigerian businesses mostly believe the current environment is worse (52%)
Regarding coping with rising inflation, 36% of business owners revealed that they had to chip in their personal savings to support their business, while 32% reduced business activity. Almost 1 in 4 (23%) tried to make ends meet by reducing employees or cutting wages to navigate the turbulent waters.
Looking towards the horizon, 34% of respondents said they are neither optimistic nor pessimistic about conditions improving in the next three months.
Businesses in South Africa (43%) and Nigeria (31%) stand out for being primarily “extremely optimistic” about the situation improving. On the other end of the spectrum, only 9% in Ethiopia said they were extremely optimistic.
The survey also delved into the pressing matter of talent acquisition and retention, exposing that a quarter of businesses (24%) encounter challenges finding qualified staff. Remarkably, Ethiopian businesses faced the most significant hurdle, with over half (52%) characterising it as “very difficult.”
In contrast, larger segments in Nigeria (28%), Kenya (24%), and South Africa (24%) reported a relatively easier access to talent.
Africa.businessinsider.com
