Entrepreneurship

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Entrepreneurship in South Africa – A Solution by Judian Govender

View of entrepreneurship in South Africa
South Africa’s national development strategy along with numerous other countries strategies, view small business development and enterprise empowerment as an imperative for economic growth.(ACT102, 1996). Worldwide there is an acknowledgement that entrepreneurship is an economic workhorse and catalyst.(GORMAN, 1997) Entrepreneurship is seen as empowering and is a requisite for emerging countries such as South Africa to progress and globally integrate. South Africa acknowledges this and given its extremely high unemployment rate, South Africa has a mandate to foster an entrepreneurial nation.(Malik Fal, 2010)
The 2012 SADC report for Doing Business, ranks countries on the ease of doing business with regards to ten aspects: opening a business, allocating permits for construction, connecting electricity, property registration, acquiring credit, investor protection, tax processing, cross border trade, imposing contracts and insolvency resolution.(Business, 2012). South Africa ranked 35th of the 183 participating countries for having an hospitable business environment. This is a striking achievement with regard to SADC average rank of 114 of the 183. South Africa is also ranked 50th of 142 countries on the 2011 – 2012 global competitiveness report(GCR) this put SA highest ranked in Sub Saharan Africa and 2nd among the bricks nations.(Mike Herrington, 2011) South Africa has unsurpassed regional performance for start-up cost for new ventures, construction permits, acquiring credit and protecting investors. Starting a business in South Africa would take approximately 6 procedures and 19 days.(Booyens, 2011)
In spite of the above accolades South Africa’s Total Entrepreneurship Activity (TEA) is far lower than expectations considering its GDP per capita, South Africa’s established business activity ranks 52nd of 54 countries.(Mike Herrington, 2011)

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