South Africa is home to many aspiring entrepreneurs and with the unemployment rate currently sitting at 29%, it may just be the answer to South Africa’s shrinking economy. Never before has there been such a dire need for entrepreneurs to positively impact and transform the community.
Small business represents the greatest opportunity this country has to grow the tax base and provide employment. In an effort to assist small business an economic policy paper titled Transformation, Inclusive Growth and Competitiveness: Towards an Economic Strategy for South Africa has been released and proposes the following steps to promote growth in small, micro and medium enterprises (SMMEs)
- Reducing red tape by 25% over 5 years
- Requiring government to pay interest on late payments to small businesses
- Consolidating existing funds for SMME support into a single fund with a clearly defined mandate.
- The creation of a subcontracting ombud
What makes a successful entrepreneur?
It takes a particular kind of person to become an entrepreneur, someone who is willing to step out of their comfort zone and take a calculated risk. Here are some characteristics often used to describe successful entrepreneurs:
- Creative: Every business starts with an idea and, to be successful, that idea needs to be unique and creative.
- Optimistic: Do you see the glass as half empty or half full? Entrepreneurs need to see it as half full in order to thrive.
- Flexible: An entrepreneur needs to be able to adapt to different situations. For instance, if a project requires that they learn a new skill, they do it.
- Self-motivated: Steve Jobs, the founder of Apple, once said: “I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.” A successful entrepreneur needs to be self-motivated and willing to put in the effort required to launch and run a successful new business.
- Resourceful: Businesspeople don’t run away from a challenge – they face it head-on and find the most effective and creative way to solve it.
- Decisive: Lastly, entrepreneurs need to be decisive, they don’t have the option to procrastinate. They need to know what needs to be done and how to do it without hesitation.
Entrepreneurship in South Africa – What the future holds.
According to the Allan Gray Orbis Foundation, entrepreneurship in South Africa is failing in one of the key areas where it is intended (and where it is sorely needed) to have the most impact: job creation. Young South African entrepreneurs are not receiving the support needed to be successful in the industry. Due to this lack of support, only 15% of our start-ups become successful.
One of the reasons for this failure may the gap between skills and ideas. Our entrepreneurs may be able to come up with fantastic business ideas, but they lack the knowledge and skills needed to develop those ideas and turn them into reality. On the other hand, it may be the other way around. While a solid understanding of entrepreneurship is vital, knowing which industries to focus on will increase your chances of being successful.
The top 5 industries in which small businesses are likely to succeed in 2020 are:
- Information Technology (IT)
Could 2020 be the you start your own business?
Starting a business isn’t for the faint of heart. It takes hard work, patience, and a solid understanding of business strategy to come up with a unique idea and turn it into a successful business plan. If you think you have what it takes to be the next Bill Gates or Oprah Winfrey, sign up for one of our business qualifications to make sure your business is built on a solid foundation. For more information about the courses we offer visit our website, or contact us at 0861 466 476 to speak to one of our skilled consultants.