South Africa needs more entrepreneurs
A shortage of new entrepre-neurs coming into the system could stall South Africa's economic growth down the line unless immediate action is taken. This is according to the latest Global Entrepreneurship Monitor (GEM) report released last week.
"Though some economists are upbeat about the prospects for economic growth in South Africa and achieving the 6percent growth target, our numbers tell a different story," said Mike Herrington GEM researcher from the Centre for Innovation and Entrepreneurship (CIE) at the UCT Graduate School of Business.
South Africa ranked 30th out of 42 countries this year with just 5,29 percent of its population involved in total early-stage entrepreneurship (TEA) activities.
"Without a healthy influx of [early stage and young] businesses into the system, more pressure will be exerted on existing businesses to create wealth. And if TEA activities are not improved quickly enough, then the danger exists that the dependency level on these existing businesses will become too much," he said.
Herrington said that entre-preneurship policies should involve all stakeholders - the government and the private sector - and should be managed and coordinated across all key areas necessary for entrepre-neurship to thrive, such as access to finance, education and training.