Launch of Global Entrepreneurship Monitor - SA Report 2007

The Global Entrepreneurship Monitor South African Report 2007 was launched at the UCT Graduate School of Business on 20 May 2008. Dr Mike Herrington, Director of the UCT Centre for Innovation and Entrepreneurship and Team Leader of GEM South Africa presented and overview of the findings in conjunction with Jacqui Kew. This year the special focus was on South African youth and their attitudes towards entrepreneurship. The study concentrated on Gauteng, KwaZula-Natal and the Western Cape as being the only 3 provinces with sufficient levels of economic activity to warrant such an analysis.

The youth was found to generally be very positive about South Africa and there was a higher incidence of 'opportunity-driven' entrepreneurial activity, rather than there being no other choice (necessity-driven). Although there were reasonable levels of awareness of specific Government initiatives to promote and support entrepreneurship in the South African youth (in major centres), there are low levels of uptake and this needs to be understood and explored. Rural entrepreneurs were often directed to seek assistance in towns, which led to them not utilising the resources.

Of concern is the decreasing trend in the use of technology as the basis for businesses, with business being primarily service oriented with high levels of competition. Crime was also a significant deterrent to entrepreneurs starting businesses, which are predominantly located in homes. In rural areas, two additional factors come into play - lack of a market, as potential customers do not have money to support the businesses, as well as the 'tall poppy syndrome' where the community tends to view entrepreneurs and those getting ahead negatively, holding them back.