MBABANE - The overall performance of the MSME industry over the year declined.

The Central Bank of Eswatini 2018 Financial Stability Report 2018 disclosed that the poor performance was unearthed through a 20 per cent contraction in Micro, Small and Medium SME profits to E644 million in 2018 (previously E800 million in 2017), profitability in the construction industry - the largest contributor – declined by 63.6 per cent.

The real estate sector also recorded a decline of 45 per cent, while profitability in the manufacturing, mining and quarrying contracted by 36 per cent.

Due to the large proportion of independent entrepreneurs, 67 per cent of the MSME owners earn under E2 500 per month.

The FINSCOPE MSME study undertaken in 2017 reflected that although income and turnover were very subjective and prone to understatement, they provided indicative performance of the business.

“The income of the business owner, assumed to be derived mainly from the business, is a reflection of how fluid the enterprise is,” read the report in part.

When looking at the income spread by size of business, it was mentioned that as a business grows from independent to medium size, the personal income of the business owner grows significantly.

This is evident in that the personal income of those earning E10 000 and above grows from three per cent for independent entrepreneurs to 62 per cent for medium business owners.

“When looking at personal monthly income in relation to mean business turnover one can see the relation between small turn over resulting in low income. As businesses grow and afford to pay an additional employee(s) it implies the turnover is high enough to foot these extra expenses of wages/salaries,” it was pointed out.