By Phiwa Sikhondze
The latest Blended MSME Survey Eswatini 2023 reveals that 56% of Micro, Small, and Medium Enterprise (MSME) owners in Eswatini rely solely on their businesses as their primary source of income, marking a significant decline from 79% in 2017.
The findings stem from a comprehensive survey conducted by the Centre for Financial Inclusion (CFI), the Ministry of Commerce, Industry, and Trade, the Eswatini Economic Policy Analysis and Research Centre (ESEPARC), and the Central Statistical Office (CSO).
The survey aims to gain deeper insights into the financial landscape and access to financial services for micro, small, and medium enterprises (MSMEs) in Eswatini.
This initiative, known as the FinScope Survey, is a global program developed by FinMark Trust (FMT) in South Africa and has been carried out in over 30 countries worldwide.
The findings highlight a notable shift in income dynamics, with 44% of business owners now supplementing their earnings from other sources. Among this group, 50% earn from additional businesses, 25% from secondary jobs, and 15% rely on financial support from their spouses.
Despite the decline in sole dependency, the survey shows that 78% of MSME owners continue to depend heavily on their businesses, either fully or partially, for personal and family income. This underlines the vital role of MSMEs in supporting livelihoods in Eswatini.
The survey also sheds light on the significant income disparities within the MSME sector. While 0.3% of business owners earn between E100,001 and E200,000 annually, the majority fall within lower-income brackets:
- 21% earn less than E2,500 per month.
- 12% earn between E5,001 and E10,000 monthly.
- 8% earn between E10,001 and E25,000 monthly.
In contrast, higher-earning business owners remain a minority, with 0.4% earning between E50,001 and E100,000 annually. These figures emphasize the financial challenges many MSME owners face in maintaining profitability and ensuring business sustainability.
The trend highlights the resilience and adaptability of business owners, who are diversifying their income streams to secure their livelihoods amid economic uncertainties. However, the findings raise concerns about the sustainability of Eswatini’s MSME sector without targeted interventions to improve business performance.