Entrepreneur and small business support

National Context in Entrepreneur and Small Business Support

national context in entrep and small business support image

● The National Development Plan’s vision is that, by 2030, 90% of all new jobs will be in small, medium
and micro-sized enterprises (SMME).
● The World Bank ranked South Africa 74th out of 190 economies in 2017, for ease of doing business. In
2016, South Africans required 43 days to start a business, compared to the 46 days needed in 2015.
● Based on the 2016/17 Global Entrepreneurship Monitor (GEM) report, SMMEs contributed 36% of South
Africa’s GDP in 2015.
● According to the Bureau for Economic Research’s 2016 report, titled The Small, Medium and Micro
Enterprise Sector of South Africa, in 2015, more than two-thirds (67%) of SMMEs were classified as
informal. The proportion of SMME owners as a percentage of all employees decreased, from 15%
during 2008 to 2012, to 14% during 2013 to 2014.
● The GEM report showed that entrepreneurial intentions in South Africa dropped, from 11% in 2015,
to 10% in 2016. Entrepreneurial intentions have halved since 2010 (20%).
● The GEM report also showed that, in 2016, 67% (up from 62% in 2015) of small businesses closed
because they were either not profitable or were unable to access finance to sustain the business.
● Entrepreneurial participation by South Africans between 25 and 34 years old decreased significantly,
from 11% in 2015, to 6% in 2016. South Africa is ranked 58th out of 65 economies for entrepreneurial
participation by this age group. However, over the past three years entrepreneurial participation
among 45 to 54-year-olds has continued to increase, accounting for 28% of all early stage
entrepreneurial activity in 2016, according to the GEM report.
● In 2016, the gender gap in terms of entrepreneurial involvement narrowed to seven women for every
10 men, in line with the averages for Africa.