Entrepreneurship in South Africa

Entrepreneurship in South Africa is alive and well, with the country not only sporting an above average ratio of entrepreneurs vs. the rest of the population. From the shear number of requests for business plans and business funding coming through to us on a weekly basis it is evident that a large number of people with in the country are pro-active and want to turn their entrepreneurial spirit and passion into a business.

 

Looking at the IDC's website this morning, there is a great article on the status of entrepreneurship in South Africa. I've added it below for your interest or you can read it on the IDC website by clicking here.

 

Wishing you entrepreneurial success,

 

Ben

 

Development Goal of reducing poverty. While sound macroeconomic policies and providing market access are crucial, emerging markets need to

nurture and develop entrepreneurs able to take advantage of opportunities created by globalisation. At a national level, South Africa it is estimated to have approximately 2 million small businesses, representing 98% of the total number of firms in the country. Small enterprises employ about 55% of the country's labour force and contribute approximately 42% to the country's wage bill. However, a problem for the country and its entrepreneurs is 87% of these small enterprises are survivalist. Of these, the great majority are black owned, with 41% owned by women. 2006 study done on entrepreneurship

 

The South African government has long recognised the vital contribution that entrepreneurs can play in economic development and the social upliftment of its people. A pivotal part of the government's ten year vision of the Accelerated and Shared Growth Initiative of South Africa (ASGISA) is for South Africa to become an entrepreneurial nation that rewards and recognises those who see a business opportunity and pursue it, a South Africa

 

with a vibrant and competitive small enterprise sector with enterprises that grow in both turnover and employment. Those who were once excluded from full participation in the economy will have access to support and development services, and be fully integrated into the different sectors of the South African economy, with access to local, national, African and other international markets. This process will contribute significantly to helping South Africa to meet and sustain the material needs of all its people.

 

For many developing countries, private sector development has been a powerful engine of economic growth and wealth creation, and crucial for improving the quality, number and variety of employment opportunities for the poor.

 

Economically, entrepreneurship invigorates markets. The formation of new business leads to job creation and has a multiplying effect on the economy.

 

Socially, entrepreneurship empowers citizens, generates innovation and changes mindsets. These changes have the potential to successfully integrate developing countries into the global economy.