South African Entrepreneurial Activity

What does being an entrepreneur entail? There are a few well known and accepted definitions the world over. The main points to consider are creating or realizing opportunities to change and improve, to think, reason and act and one who organises, manages and assumes the risk of a business enterprise. You will need to convince at least one person that the idea will work and that there is a need for the opportunity. Entrepreneurs need to have some form of backing whether it be personal savings, a loan from an institution or an investment from the relative party. Without the basic funding, the venture will not be able to grow. Entrepreneurial activity can be defined as “is the enterprising human action in pursuit of the generation of value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets” (Seymour, 2006).

What are the reasons for low levels of entrepreneurial activity in South Africa?

South Africa is not on the same page as other developing countries when it comes to entrepreneurial activity. The public sector as well as the private sector has invested substantial amounts in an attempt to boost the activity within the country. This however has not made a significant impact and thus there must be other reasons which can be linked to the low rate of entrepreneurial activity within the nation. Many of the factors have knock on effects to one another and thus a vicious circle of declining activity can be developed leading to a deteriorating rate of activity.

In South Africa, the entrepreneurial activity continues to be hindered by a poor skills base as well as severe environmental limitations including the vast amount poverty, a lack of active markets and poor ac...

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