03 Mar Entrepreneurship – How it can boost South Africa.
Entrepreneurship can assist in growing South Africa’s economy as well as creating employment. There is general agreement that the more individuals there are creating businesses, the more viable jobs will be created as well.
The country is 20 years into democracy and individuals are being encouraged to make their own opportunities instead of relying on the tradition of working for someone. The South African government acknowledges that entrepreneurship and the development of more SMME’s will play an important role in the future growth of the economy.
South Africa at present needs to create roughly six million jobs. Big Business alone cannot compensate and provide these jobs. Small start-up businesses are being encouraged as a foundation for assisting our economy which has unfortunately shrunk due to world economic developments as well as instability in the mining sector.Small businesses will assist the country to produce new opportunities for employment. There has been much debate about relaxing strict regulations by Government which are felt to hinder small business start-ups. Relaxations could encourage more people to take chances and promote more competition in the various industries.
South Africa unfortunately has an underdeveloped informal sector such as general dealers, temporary fast food stands, hair dressers, pottery and crafts etc. which has the potential to grow and create employment opportunities.A culture of entrepreneurship (self-employment) if developed has the opportunity to become a source of revenue and a much needed vehicle for job creation. New ideas and creativity can help to create much needed jobs. Schools can be a fantastic foundation for encouraging young children to “think outside the box” and create a culture of being one’s own boss. The challenges facing employment in South Africa are difficult at present as jobs are not being created fast enough.
There is an undisputed need for encouraging small business development which will in turn promote the country’s economy.