Bruce Whitfield:
In January South African business was the third most optimistic in the world but that was before the three interest rate increases and a 20 percent decline in the value of our currency. Well according to new research published today private companies remain very positive about the business environment and the research comes from PricewaterhouseCoopers.

It has just completed its first survey into the views of private companies, most of which incidentally are actually owner managed, and Andries Brink is the National Leader for Private Company Services at PWC.

And Andries why did you choose to do this particular piece of research now after what has been quite a volatile year for the South African economy?

Andries Brink:
Thank you Bruce and good afternoon. Bruce, PricewaterhouseCoopers have been doing business within the private company space for a long time. In actual fact, 50 percent of our total turnover comes from business with private companies and that is very consistent to what is happening with PricewaterhouseCoopers globally.

Why have we conducted the survey in private companies and that area? We regard ourselves as a knowledge business, our traditional involvement with private companies and the focus and continued focus that we have on servicing private companies brought this to the point where we would have liked to share and plough back and invest some of the views of private companies and its business owners. It is not information as you well know that?s readily available in the South African context.

Bruce Whitfield:
That is the thing because private companies are exactly that, very private and quite often quite secretive about the way they do things and what I find interesting about this research is the high level of optimism amongst privately owned companies in this country.

Andries Brink:
Yes absolutely. I think that is a key finding; the fact that there were overwhelming optimism amongst business owners and managers of private companies, most likely on the back of increased government spending, a buoyant economy and anticipating what the 2010 Soccer World Cup can bring to South Africa but in that I think there is also a challenge and a threat in the sustainability of the growth expectation and the profit expectation that they have amongst company owners.

Bruce Whitfield:
And we also constantly hear about skills shortages, listed companies complain about that all the time. The private companies must be battling even more. One would think it is easier to draw and attract skills in the corporate sector. What about the private sector, are they struggling?

Andries Brink:
Bruce yes absolutely. I think if you would look at the skills shortage, it was something that was identified in all areas that we surveyed. I think it was just about government regulation and BEE being one of the aspects that was a matter that was hugely concerning to future growth of private companies but the lack of a skilled workforce and the ability to recruit a skilled workforce will be a serious challenge to private companies to achieve the growth expectations that they have.

Bruce Whitfield:
Andries Brink on the line to us from Cape Town. That research being done, fascinating research and also the challenges that are being felt by big business are being felt by private companies as well. I suppose that is perfectly logical but we don't often get an insight to the way that small private companies, privately owned and managed companies, operate in the South African economy and that report no doubt would be available if you want a bit more detail on that on the PWC website.