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Global Entrepreneur Monitor Report

An alarmingly low level of entrepreneurial activity in spite of high unemployment

Most recent data: 2014

South Africa’s rate of entrepreneurial activity is very low for a developing nation – a mere quarter of that seen in other sub-Saharan African countries. Unemployment is around 40% of the adult population; despite this, the number of people starting businesses due to having no other option for work (necessity entrepreneurship) is low.

Entrepreneurial activity in South Africa, although very low, has increased marginally over the last 10 years, but in 2014 dropped by a staggering 34% (from 10.6% to 7%). There has been an increase in women’s entrepreneurship primarily due to government support, but the perception of opportunities to start a business, and confidence in one’s own abilities to do so, remains alarmingly low compared to other sub-Saharan African countries.

The level of business discontinuance still exceeds that of business start-ups, resulting in a net loss of small business activity and subsequent job losses. Like elsewhere in Africa, many of the businesses cite lack of finance and poor profitability as the main reason for shutting up shop.


Entrepreneurial activity in South Africa, although very low, was increasing marginally year on year over the last decade – however, in 2014 this trend was severely reversed by a huge 34% drop.


The main challenge is to provide jobs and/or opportunities for the youth, where the estimated unemployment level is in excess of 60%. This can be assisted through education; however, the level and quality of education in South Africa is one of the worst in the world. The level of mathematics and science education in the country, as assessed by the Global Competitiveness Report (2014/2015), puts South Africa at #144 of 144 countries.

Regulatory requirements make it very difficult for people to start businesses; this is further exacerbated by onerous labour laws and the low efficiency of the labour force. Corruption starting at the highest levels of government remains a major challenge, together with high levels of crime. This report reflects 2014, however we expect that when the 2015 report is produced that it will not indicate any significant improvement.

We expect that the 2015 report, when it is finally produced later this year, will not indicate any significant improvement. This is why we need a Definite GOAL, Practical PLAN and an Urgent DEADLINE which can be immediately implemented. Visit and


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