Current Situation of South African Entrepreneurial Enterprises.
This essay will discuss the current situation of entrepreneurial enterprises in South Africa, in regards to its development and benefits to society. Additionally it will explore what factors might have influenced entrepreneurships resulting in the current situation and highlight their importance to society.
South Africa is currently confronted with several economic, political and social issues, making it hard for new entrepreneurs to enter the market as well as for existing entrepreneurs to stay in the market, hence the total Early-Stage Entrepreneurial Activity (TEA) in South Africa which is 5.9%, is significantly below the average of both efficiency driven economies with 11.2% as well as below average for all middle to low income countries with 14.8%. (A Gem Perspective, 2009. M.Herrington, J.Kew, P.Kew) The still underdeveloped infrastructure in the country further contributes to negative impacts on opening up a business and arises due to un-prioritized government spending. .2% as well as below average for all middle to low income countries with 14.8%. (A Gem Perspective, 2009. M.Herrington, J.Kew, P.Kew)
The still new rather new political system and obvious significant changes are still impacting South Africa with BEE (Black Economic Empowerment) and B-BBEE (Broad Based Black Economic Empowerment) laws and regulations, which support people of different ethnic groups who were previously disadvantaged. The B-BBEE law was passed in 2007 and is hence still rather new, it supports ED (entrepreneurial development) of black people by taking funding from cooperation’s. (The Entrepreneurial Dialogues) However a valid business idea and plan and a certain skill set, experience are required which often are not met by the individuals applying for the ED, due to poor educational systems and lacking business experience. Furthermore the South African culture neither celebrates entrepreneurial innovation nor supports the aim of single handedly acquiring wealth.
South Africa is currently confronted with several economic, political and social issues, making it hard for new entrepreneurs to enter the market as well as for existing entrepreneurs to stay in the market, hence the total Early-Stage Entrepreneurial Activity (TEA) in South Africa which is 5.9%, is significantly below the average of both efficiency driven economies with 11.2% as well as below average for all middle to low income countries with 14.8%. (A Gem Perspective, 2009. M.Herrington, J.Kew, P.Kew) The still underdeveloped infrastructure in the country further contributes to negative impacts on opening up a business and arises due to un-prioritized government spending. .2% as well as below average for all middle to low income countries with 14.8%. (A Gem Perspective, 2009. M.Herrington, J.Kew, P.Kew)
The still new rather new political system and obvious significant changes are still impacting South Africa with BEE (Black Economic Empowerment) and B-BBEE (Broad Based Black Economic Empowerment) laws and regulations, which support people of different ethnic groups who were previously disadvantaged. The B-BBEE law was passed in 2007 and is hence still rather new, it supports ED (entrepreneurial development) of black people by taking funding from cooperation’s. (The Entrepreneurial Dialogues) However a valid business idea and plan and a certain skill set, experience are required which often are not met by the individuals applying for the ED, due to poor educational systems and lacking business experience. Furthermore the South African culture neither celebrates entrepreneurial innovation nor supports the aim of single handedly acquiring wealth.