ENTREPRENEURSHIP in South Africa is lower than the world average, with many locals scared to start their own businesses because they think they will fail
Mike Herrington, director of the University of Cape Town's Centre for Innovation and Entrepreneurship at the Graduate School of Business, made this comments at the launch of the Global Entrepreneurship Monitor 2010 South African Report at the weekend.
"Though there is a very low level of entrepreneurship among South Africans, there is also a high level of necessity among women," he said.
The GEM survey ranked South Africa 27th out of the 59 countries, with a total entrepreneurship activity of 8,9 percent - lower than the average of 11,9 percent.
Several other developing countries, such as Argentina, Chile, Brazil and Peru, have total entrepreneurship activity rates that are two or three times higher than South Africa's.
Herrington had some recommendations for improving South Africa's entrepreneurship activity levels.
"There should be exposure to entrepreneurship in schools and an improvement in quality of teachers is essential," he said.
Penny Kew, senior researcher for the GEM report, said the poor sustainability of start-ups in South Africa relative to other countries sample highlights the need for a plan to support entrepreneurs through the first difficult months of them starting their businesses.
All over the world, the global recession reduced the number of individuals who thought there were good opportunities to start businesses, said Kew.