Entrepreneurial activity in South Africa is on the decline, according to the latest Global Entrepreneurship Monitor (GEM) report. Female businesspeople in particular seem to be taking a back seat. In 2014, they were more than twice as likely to start a business and in 2015 this figure decreased to 1.6 times. What’s more is that the country’s entrepreneurial intentions have nearly halved when compared to 2010 – 3.6 times lower than the continent’s average.
Data from the GEM study indicates that the majority of South African entrepreneurs are aged between 24 and 44, and account for 50% and 60% of all early-stage activity. While this reflects some hope, the study highlights government policy (61%), access to finance (44%), and education and training (42%) as the main factors impeding entrepreneurial growth, all of which had a role in 62% of businesses closing last year.
However, all is not lost for the country’s enterprisers. A quarter of South African entrepreneurs gain 25% or more of their revenue from international sales, which is more than double the African average.
