SA needs to start more businesses

Perhaps I am being melodramatic, but let’s take a look at some numbers.. Data that tracks the total entrepreneurship activity of some countries has shown that South Africa is waning in terms of entrepreneurship activity.

In a recent report released by FNB and Endeavor South African about the state of South African Entrepreneurship shows that the total entrepreneurial activity for SA is 5%, which is less than half that of India, Brazil and Mexico.

Total entrepreneurship activity is a global index and it measures how much of the labor force of a particular country has started a business and also includes people who have kept businesses going for the last 3.5 years.

In 2001, the total entrepreneurship activity for South Africa was 9.3% and our labour force was about 12.4 million. This probably meant that about 1 153 200 people in South Africa’s labour force were pursuing some kind of entrepreneurial activity.

According to figures released recently by Statistics South Africa, the labour force is currently sitting at 17.7 million. From my calculations, about five percent of our labour force is 885000.

So perhaps it’s not a death as reflected in my sensationalist, dramatic headline, but it is a cause for concern. In 2009, the African country that came out tops in terms of percentage in Africa was Uganda.

via Is entrepreneurship dying? | The Scribblers

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