According to the latest Global Entrepreneurship Monitor (GEM) report, entrepreneurial activity in South Africa has persisted despite the tough economic environment of the past two years.
The report which was published on Tuesday 11 October 2022 shows that the country’s total early-stage entrepreneurial activity increased from 10.8% in 2019 to 17.5% in 2021, while established business ownership rose from 3.5% to 5.2%.
The report measures entrepreneurship across global economies. The 2021 report looks at 50 economies including Africa’s four countries that is South Africa, Sudan Morocco and Egypt. By assessing entrepreneurial development across various economies, the study allows for the monitoring of the evolution of entrepreneurship over a period of time.
“There can be little doubt that entrepreneurs have experienced a taxing two and half year, thanks to the pandemic, the unrest in July 2021 and the current landscape of the exchange rate volatility, high inflation and load shading,” says Capital Connect CEO Steven Heilbron in a statement.
“Nonetheless, entrepreneurs remain resilient despite these challenges.”
Rather than deter South African entrepreneurs, the report found that a desire to make a difference, build wealth and earn a living motivated them to find innovative entrepreneurial solutions to these challenges.
“Our country’s entrepreneurs are risk takers who spot opportunities that others miss,” added Heilbron.
“They are willing to invest in growth and progress, even when the odds appear insurmountable to others.”
One of the sectors to benefit from this attitude is the wholesale and retail arena, which has seen the most innovation over the last five years, which competition intensifying as the various players try to maintain their relevance to consumers.
Heilbron highlighted that, “change spells risk and opportunity. As we saw from the rise of fast delivery service like Checkers Sixty60 during the pandemic, there is opportunity in crisis.”
He also went on to highlight that, “ambitious entrepreneurs in retail are showing resilience and agility in creating new businesses to disrupt the status quo and target evolving consumer trends and tastes to compete in a new normal world.”
Winding up, Heilbron said “whether it’s investing in a coffee shop and bistro for their shop or putting solar panels and batteries in place to keep trading through load shedding, South African retailers are getting in front of today’s risks and opportunities.”
Moneyweb
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