As SA grapples with the aftermath of the pandemic, the latest Global Entrepreneurship Monitor (GEM) SA Report brings forth sobering insights.

Unemployment has reached alarming heights, with eight million people now bearing the weight of economic uncertainty. The decline in Total Entrepreneurial Activity (TEA) below pre-pandemic levels serves as a stark reminder of the challenges we face in rebuilding our economy.

Meet Naledi, a young South African graduate with dreams as vast as the African horizon. She, like many others, embarked on the journey of higher education, fueled by the hope of a prosperous future. However, Naledi's story took an unexpected turn. Despite her qualifications, she found herself navigating the harsh reality of unemployment.

In a country where the unemployment rate has surged to 32.1%, Naledi represents countless individuals who are not mere statistics, but bear the weight of unfulfilled aspirations. The GEM report paints a poignant picture – the entrepreneurial dreams of many like Naledi are stifled by an environment that falls short in fostering economic resilience.

The report highlights that the motivations behind entrepreneurship are primarily driven by necessity, a stark reminder that for many, entrepreneurship is a path for survival rather than prosperity. The decline in intentions to start a new business and the ownership of established businesses rings an alarm – the entrepreneurial spirit is waning when we need it the most.

TEA, a metric encompassing active businesses less than three months old and new businesses up to 3.5 years old, has declined from 17.5% to 8.5% in 2022/23, below the 2019 level of 11%. Established business ownership (more than 3.5 years) has almost halved, from 3.5% in 2019 to 1.8% in 2022/23.

The report sheds light on the factors influencing entrepreneurial activity in SA. Unfortunately, the quality of the entrepreneurial environment has regressed, falling to 3.6%, the third lowest among the 49 GEM participating economies.

While the GEM report highlights challenges, it also serves as a call to action. Rebuilding the entrepreneurial landscape requires a collaborative effort from the government, corporations, non-governmental organisations and individuals.

The government needs to reassess and overhaul policies, creating an environment conducive to entrepreneurship and then implement comprehensive support programmes, including access to finance and mentorship, to nurture budding entrepreneurs. Corporations should invest in innovation and start-ups, fostering a culture that embraces entrepreneurship.

They should also consider collaborating with educational institutions to integrate practical entrepreneurial education into curricula. NGOs should look into establishing entrepreneurial hubs in communities to provide resources, mentorship and networking opportunities.

NGOs can play a pivotal role in facilitating financial inclusion, enabling aspiring entrepreneurs to access funding. Individually, we should seek to foster an entrepreneurial mindset from an early age, encouraging creative thinking and problem-solving. Individuals should actively participate in entrepreneurial networks, sharing insights and providing support.

Here are few examples of what has worked before.

•The Silicon Cape Initiative in SA exemplifies how the collaboration between the government, corporations, NGOs and individuals can create a thriving entrepreneurial ecosystem. It provides a platform for start-ups to connect with investors, mentors and fellow entrepreneurs, fostering innovation and growth.

•Harambee Youth Employment Accelator focuses on tackling youth unemployment by connecting young South Africans with job opportunities and providing them with the necessary skills.

•The Allan Gray Orbis Foundation plays a crucial role in fostering entrepreneurship by providing fellowships, scholarships and support for young, aspiring entrepreneurs. Corporate investment in start-ups has demonstrated a commitment to fostering entrepreneurship by investing in start-ups.

By doing so, they contribute not only financially but also offer mentorship and guidance, creating a symbiotic relationship that benefits both parties. Government policy reformation has taken significant steps in reforming policies to create a more favourable environment for entrepreneurs.

By cutting bureaucratic red tape and providing incentives, the government has set the stage for a more conducive entrepreneurial ecosystem. Beyond mere compliance, corporate SA has ingrained entrepreneurship into its organisational culture.

By encouraging employees to think innovatively, fostering a start-up mentality and providing avenues for idea implementation, the company is contributing to a broader cultural shift towards entrepreneurship.

Collaborative efforts can contribute to a positive shift in the GEM results. By providing support, mentorship and resources, these initiatives empower entrepreneurs, increasing their chances of success and sustainability.

Connecting youth with job opportunities has a direct impact on reducing unemployment. Such initiatives bridge the gap between education and employment, creating a more skilled and employable workforce. As we confront the challenges outlined in this report, let us remember that the path to prosperity requires collective action.

It is time to reimagine a SA where entrepreneurship is not just a survival strategy but a beacon of prosperity for generations to come.

The journey may be challenging but by aligning our efforts and championing a culture of entrepreneurship, we can usher in an era where economic empowerment is not a distant dream but a tangible reality for all South Africans.  

Dr Zwane is a Nelson Mandela scholar and managing executive: group corporate citizenship at Absa Group. He writes in his personal capacity.