A recent survey shows that South Africa’s top businesses have cause for optimism

Ten of South Africa’s top companies have unanimously claimed to be positive about the country’s business outlook for 2013 in a recent anonymous survey. But their optimism was tempered by the familiar concerns dogging local businesses.

Top of the concerns cited were labour unrest and acquiring and retaining suitable experienced and qualified employees.

In the latest Jack Hammer Corporate Survey, conducted among South Africa’s top corporate employers by leading executive search firm Jack Hammer Executive Headhunters, the entities polled represented the financial services, engineering and manufacturing industries. Responding to the question: “Are you positive about the business outlook for 2013?” all respondents gave an unqualified “Yes”.

Asked about the biggest challenge facing their business in the coming year, businesses listed a diverse range of factors, indicating the complexity of running large private sector corporations (which globally have similar challenges) within the unique South African context.

Issues such as regulatory changes, global growth, talent retention, and consumers’ reduced spending power are common in almost all developed markets; whereas labour unrest, high unemployment and political uncertainty are over and above these, top-of-mind concerns for most business leaders in South Africa.

Debbie Goodman-Bhyat, founder and Managing Director of Jack Hammer, said that despite the familiar concerns, it was an optimistic sign that without fail, the companies polled expected 2013 to be a positive year.

“It’s less about any major changes in the global or domestic markets – because frankly macro-economic threats still loom, and domestic growth is still only marginal – and more about a relative positioning  to where we stood in early 2012 with tremendous worldwide economic uncertainty”  Goodman-Bhyat said.

But, she added, it was important to address continued hostilities between labour, business and government.

“The level of concern about labour unrest is quite alarming, as is business’ lack of faith in all parties honouring existing agreements. Moreover, with limited or no apparent solutions to these issues coming forth from any quarter, there is significant anxiety around the country’s ability to tackle political and social challenges, to ensure an environment conducive to investment, growth and job creation.”

Interestingly, whilst Jack Hammer Executive Headhunters was seeing an increasing flow of South Africans living abroad returning to the country since the global financial crisis in 2008, “the marked up-tick of labour unrest and perceived political uncertainty of late 2012 seems to have stemmed the flow”, notes Goodman-Bhyat.

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Top image: Sasol, www.mediaclubsouthafrica.com