During his 2020 Budget Speech, Finance Minister Tito Mboweni stated that entrepreneurs will ignite the economy and drive job creation.
Proving his words are the 26 entrepreneurs being supported by Endeavor South Africa who, over the past three years, have delivered growth – fuelling job creation, propelling the economy and inspiring future generations of leaders.
Between 2017 and 2019, these entrepreneurs collectively created over 4 650 additional jobs, with a 29% annual growth in headcount over the past three years driven predominantly by SweepSouth and Call Force. This is especially important for South Africa, given the country’s exorbitantly high unemployment rate of 29%. At the end of 2019, all the businesses combined employed a total of 11 670 people.
The companies in the Endeavor South Africa portfolio generated an impressive R11,5-billion of revenue in the period from 2017 to 2019, with R4,7-billion being amassed in 2019 alone. This equates to an average annual revenue of between R200-million and R220-million per business and an annual revenue growth of 27% per annum – an achievement that is particularly impressive in light of the South African economy growing at 1%.
Smaller businesses in the group (with turnover between R0-million and R50-million) enjoyed 41% growth per annum, while medium-sized businesses (with turnover between R50-million to R500-million) experienced growth in excess of 35%. Larger businesses (with a turnover of R500-million or more) saw growth exceeding 21%. Fast-scaling tech players within the cohort have grown their revenue by approximately 47% year-on-year.
Additionally, four entrepreneurs – Flexclub, Pargo, Retail Engage and Wyzetalk – delivered annual growth, ranging from 73% to 186%, between 2018 and 2019.
In addition, over the past three years, 70% of these businesses have successfully raised capital to the value of over R1,4-billion. Most recently, in January 2020, Skynamo successfully raised $30-million led by US-based Venture Capital firm, Five Elms Capital.
Endeavor South Africa notes that more than 20% of these businesses are led by black founders and more thn 25% are led by female entrepreneurs.
“Endeavor strives to make a sustained social impact by supporting high-growth entrepreneurs whose innovations are transforming lives, the nation and the entire economy for generations to come,” says Alison Collier, MD of Endeavor South Africa. “The 26 entrepreneurs currently in our portfolio range from software, fintech and education, to retail and healthcare and are shaping a new innovation-led landscape for the local consumer.
“By selecting, mentoring, and accelerating the best high-impact entrepreneurs in South Africa, we are maximising job creation, driving long-term economic growth and cultivating rising leaders and role models.”
Endeavor South Africa chairman, Herman Bosman, adds: “I’m proud to have been able to play a small part in driving our economy’s revenue growth and job creation through supporting scaling medium-sized entrepreneurs. By championing these entrepreneurs, Endeavor South Africa is not only making a positive difference in our country but is also contributing to Endeavor’s global movement that’s founded on the belief that job creation, innovation and overall prosperity flourish where there is robust support for high-impact entrepreneurs.
“This ethos is validated by the impressive performance and impact of these 26 entrepreneurs and will no doubt be augmented in the years to come thanks to Endeavor’s paying it forward philosophy.”