Research has indicated that entrepreneurship is the biggest driver of economic growth. In South Africa, the weakening rand has made this fact that much more glaringly obvious. There is a dire need for more entrepreneurship in the country, which will create jobs and foster economic growth.
What does it take to become an entrepreneur in South Africa?
The most common barriers to entry in the South African entrepreneurship sector include a lack of funding, risk aversion and red tape.
Here are some of the realities of what it takes to be an entrepreneur in South Africa:
8 out of 10 new businesses in South Africa fail within the first two years. There is a lot of work that needs to be done to support viable business ventures. What has become more evident is that there are many opportunities in small niche markets.
There are two main types of entrepreneurs in South Africa. This includes those who start businesses out of necessity as well as those who have aimed at identifying and seeing the opportunity to establish a growing business that creates employment for others.
Entrepreneurs need to make their ideas more globally viable.
Many entrepreneurs struggle with a lack of funding.
Research has shown that South African consumers, businesses and investors tend to be too cautious. Entrepreneurs in this country need to work very hard to persuade consumers, businesses and investors.
Red tape and lengthy bureaucratic systems often impede the speedy implementation of entrepreneurial innovation.
What are some of the most common characteristics of successful entrepreneurs?
- High risk tolerance
- Ability to manage money wisely
- Ability to project a positive business image
- Good planning skills
Tips on being an entrepreneur in South Africa:
- Focus on getting clients versus making money
- Get the basics of your business right
- Get a mentor to help you through the process
- Entrepreneurship is about connectedness