The Global Entrepreneur Monitor (GEM) global report says that while South Africa is not alone in its decline and failure rate for small businesses, what remains concerning is the country’s low level of start-up activity.
Mike Anderson, founder and CEO of the National Small Business Chamber (NSBC), says that there are many mixed messages when it comes to the state of South Africa entrepreneurship, but what remains key is to continue working towards building a culture of self-employment and sustainability.
“If we had to rely on the statistics alone, South Africa would not build a small business community at all, instead it would rely on multi-nationals to develop the economy. This is the polar opposite of what we need as a nation. We need to create our own wealth and entrepreneurship provides one of the main engines of growth in any healthy economy,” says Anderson.
Gearing up for My Business Expo in Cape Town, Anderson says that one of the main challenges for current and aspiring entrepreneurs is funding. “The GEM report says that of the 73% of adults that recognise entrepreneurship as a good career choice, just 9,2% actually start businesses. While there are many factors that can contribute to business failure, funding is probably the most common.”
He says this year’s My Business Expo features the “Build a Business LIVE” free seminars and he will be discussing how to start a business with no money: “We need to start encouraging South Africans to think beyond a job. If we can alter mindsets, address the challenges and realise what is possible, small business development will develop naturally.”