Business Man

Question 1

“South Africa’s levels of entrepreneurship are generally regarded as low”

The level and state of entrepreneurship in South Africa is regarded as too low and below the average in comparison to all the other countries around the world and their economies. This is due to a few factors and reason such as, poor education level, and the amount of uneducated people in south Africa, low levels of employer support, and the extremely high level of top-down decision making in South Africa. All these factors have a big contribution to the poor performance and involvement of entrepreneurship in the South African economy.

There is a project in which all this is measured. It is known as the GEM project (Global Entrepreneurship Monitor), this project is known to be the most sufficient and comprehensive way in which to study entrepreneurship around the world. South Africa has been a part of this project for the past 13 years.

The TEA (Total entrepreneurship activity) rate of south Africa has been said to be quite consistent a rating of 9,1%. South Africa’s TEA rate is very low and quite below the average in comparison to other economies around the world. This is a huge concern for the country, but presents the opportunity for further investigation on the factors that cause and impact the low entrepreneurial activity in the economy.

The female involvement in entrepreneurship increased but by a much smaller margin than that of the male’s involvement. The South African TEA rates between the ages 18- 24 and 25- 34 are unfortunately the second lowest in the BRICS countries economies. Which is to be stressed when you take into consideration the youth unemployment rate is 48.2%. Ages 25-34 are where the efficiency driven economies drive the TEA rate. Due to the fact that South Africa have a very low established business rate, this shows that there is a low rate of...