South Africa has been named one of sub-Saharan Africa’s entrepreneurial frontrunners, after a global report placed the country in second place, after African counterpart Botswana.
According to the Entrepreneurial Ecosystem of South Africa: A Strategy for Global Leadership Report, researched and produced by the Global Entrepreneurship and Development Institute (GEDI) – a research organisation that studies entrepreneurship and economic development – with support from SEA Africa (local organisers of the Global Entrepreneurship Congress), South Africa’s entrepreneurs continue to make good strides with entrepreneurial activity.
The report was commissioned by the Allan Gray Orbis Foundation and the South African Breweries (SAB) Foundation. These two leading local foundations, which are committed to developing entrepreneurship in South Africa, commissioned the report in order to better understand the role that entrepreneurship is playing in the country.
The intention was also to benchmark South Africa globally, celebrate achievements and strengths, and to assess areas for improvement so as to know how best to guide resources and policy in the coming years.
The report states that entrepreneurs in South Africa have overcome structural factors, including the country’s slow GDP growth rate and the number of large firms dominating the business market to produce some of the most successful enterprises on the continent.
The country is poised to achieve further growth in years to come through entrepreneurship and indicates that South Africa is on par with other middle income countries around the world when it comes to entrepreneurship, and provides the institutional support necessary for high-growth businesses to start-up and thrive.
South Africa was ranked 55 out of the 137 countries surveyed globally. The ranking places Botswana in first place from Africa, followed by South Africa, Namibia, Gabon and Ghana.
“The report confirms South Africa’s position as an entrepreneurial leader on the continent and provides an insightful road map for us to focus in on those areas that will provide the greatest leverage for accelerating our entrepreneurial ecosystem even further,” says Anthony Farr, CEO Allan Gray Orbis Foundation.
“We work with approximately 80 new entrepreneurs every year and have positive experiences of innovation and growth, along with a well-developed (if a little fragmented) entrepreneurship ecosystem. We have struggled to reconcile this with some misconceptions regarding South Africa’s lack of entrepreneurship and our perceived poor performance against other countries. Along with Allan Gray Orbis Foundation, we wanted to give an alternative view. We are pleased with the results, which show that South Africans can congratulate themselves and be proud of what has been achieved in the entrepreneurial space, while still being realistic about what needs to improve in order to drive economic growth and job creation,” says SAB Foundation Director, Bridgit Evans.
The findings highlight South Africa’s positive performance in entrepreneurial aspirations, innovation, high growth, internationalisation and risk capital, all considered important elements to achieve economic growth in the country. It further states that SA provides better conditions for entrepreneurship when compared to 20 other countries with a higher per capita GDP, including Russia, Mexico, Brazil and China.
The GEDI report covered 28 countries in the Africa region, which amounted to 54 percent in total. The report demonstrates the country’s position globally when it comes to new businesses, competitor position, new businesses offering new products and new businesses using new technology, and ranked the country in the top 25 percent of countries surveyed globally in these areas. But stumbling blocks exists, and factors such as finance, skills, access to local and international markets, education and the right network need to be addressed to ensure that South African entrepreneurs are able to grow and thrive.
The report suggests that South Africa needs better, innovative and growth-orientated entrepreneurs who are motivated to grow and prosper within the South African environment and through constant engagement with the global economy.
“Top actions that could strengthen the entrepreneurial ecosystem include helping more entrepreneurs get the skills they need, expand access to banking, particularly mobile banking and accelerating technology absorption, with a focus on digital technology,” the report says.
Business Linkages And Investment Readiness
The Africa Women Innovation & Entrepreneurship Forum (AWIEF) is hosting its flagship Growth Accelerator Programme for 2018, sponsored by Nedbank.
The Africa Women Innovation & Entrepreneurship Forum (AWIEF) is hosting its flagship Growth Accelerator Programme for 2018, sponsored by Nedbank. AWIEF is seeking 25 ambitious, innovative and committed early-growth-stage South African women entrepreneurs, from a variety of sectors, looking for support to scale their businesses.
Access to finance is the most cited challenge to the growth of women-owned businesses in Africa. Bankability and investment readiness are major impediments to attracting business finance.
This is an intensive six-week programme designed to support participants with the business modelling and growth strategy required to scale their enterprises, become investment ready and develop entrepreneurial leadership. The programme will cover:
- purpose and values
- target market, competitive landscape and value proposition
- delivery model
- financial modelling
- conduct a creative force
- growth strategy
- financing for scale
- pitch training.
Nirmala Reddy, Senior Manager of Nedbank Enterprise Development, says: ‘We support initiatives such as this in line with our pledge to help clients see money differently, which is aimed at making a difference in South Africa, not just for women and children and business, but also for communities throughout the country. The bank strongly focuses on the development of female employees and black-women-owned suppliers, and this can be seen through our development and training programmes. We are also proud that women make up 62% of the workforce at Nedbank.’
The 2018 AWIEF Growth Accelerator, with its first 25 participants, is implemented as a build-up programme that will culminate at the 2018 AWIEF Conference, Exhibition and Awards event taking place on 8 and 9 November at the Cape Town International Convention Centre, where participating entrepreneurs will pitch their business to an audience of investors, business leaders and corporate decision-makers.
The three best ventures stand to win monetary prizes from AWIEF and financial management advice from Nedbank.
The programme details are as follows:
- Dates: Starts on 17 September and culminates on 8 and 9 November 2018
- Location: Cape Town and Johannesburg
- Participation fee: Free
Businesses must be:
- in a post-revenue phase;
- scalable and innovative ventures;
- in operation for not less than two years (ideally three to five years);
- owned or led by ambitious and committed women entrepreneurs; and
- seeking investment or funding to grow.
If you are interested in participating, click here to apply. Applications close on 31 August 2018.
Investing In Women Key To SA Socio-Economic Development
Investment in women’s empowerment delivers long-term socio-economic returns, says Novartis. Women’s networks and mentorship engagements can help unlock personal and career success.
Empowering women has long-term positive socio-economic impacts, making women’s empowerment, career development and mentorship programmes a compelling narrative for companies.
This is according to Sibonile Dube, Head of Communications & Public Affairs at Novartis South Africa and a mentor at Phakama Women’s Academy. Marking the start of national Women’s Month, Dube cites Bain & Company research into how and why the career paths of South African women and men differ, which found that in 2017, 31% of South African companies had no female representation in senior leadership roles. The research noted that the Businesswomen’s Association of South Africa (BWASA) census on women in leadership indicated that 22% of board directors were women, but only 7% were executive directors. Only 10% of South African CEOs and only 2.2% of JSE-listed company CEOs were women.
“Considering that recent research by MCSI concluded gender diversity on the board has significant benefits for both productivity and profits, South African enterprises need to become more proactive about supporting women’s empowerment in the workplace,” says Dube. But Dube adds that while formalised empowerment and mentorship programmes are important, South African women hold some of the keys to helping both themselves and other women unlock success.
She outlines three key factors that hold women back from corporate and entrepreneurial success, and how these challenges can be overcome:
Lack of confidence
A key factor holding women back from achieving their true potential in the workplace – and as entrepreneurs – is fear and a lack of confidence, says Dube. “As women, we often undersell ourselves – we underestimate our potential, our power and the amount of influence that we have. In contrast, men are typically quite confident in themselves and their capabilities,” says Dube.
The Bain & Company survey of over 1000 women found an apparent loss of confidence amongst women in junior- and middle-management positions that they could rise to the top. At this level, some respondents noted political imbalances that were difficult to navigate; while their male colleagues had access to a sponsor or mentor (normally of the same sex and colour) to help navigate these issues.
Dube believes women need to become more proactive about empowering themselves, equipping themselves with a broad range of skills, and actively working on building their self-awareness and self- esteem. “Building skills goes beyond developing academic or technical expertise – we need to work on our relationship skills and communication skills, because human relations are crucial for success in a setting where you are looking for influence and significance.”
“Dealing with fear and lack of confidence is important, because this enables us to have relevance and contribute more meaningfully to in the workplace and in business,” says Dube.
Lack of support networks
More than women, men generally back one another be it in corporate or in business deals and this has supported their career success a lot, says Dube. “Having a network is important – it is through these networks that opportunities are shared and support is gained. Having a strong network of people that back your career becomes an effective reference point especially in times of challenges. And through these networks, people are also able to find mentors.”
Dube believes mentorship is a crucial component of career success, offering both mentor and mentee opportunities to learn and grow. “We need more mentorship. With mentorship, training and coaching, women can actually pull out some of the strengths they possess which they may not be aware of. One is challenged and pushed to aim higher,” says Dube.
Bain & Company research found that sponsorship of individuals, especially at the mid-management level, ensures that contributions and performance are recognised and attributable to the individual. Often women, particularly in middle management, feel marginalised, ignored or simply worn down by trying to get their efforts recognised.
Dube, who mentors a number of women, says mentorship can be formalised through a corporate career development programme, but can also extend to informal and virtual mentor-mentee relationships. “You can be guided by simply reading the books, reading articles and watching videos and talks of inspirational leaders anywhere in the world on social media,” says Dube. Dube points out that good mentorship can be a mutually beneficial in the exchange of ideas and meeting of minds. “In an effective mentor-mentee relationship, reverse mentorship takes place. In an era where we now have four generations in the workplace, the digital and tech savvy younger generation have a lot to offer to the rest,” says Dube.
Poor Health and Wellbeing
In order to cope and remain competitive in the workplace, women have to ensure they take care of their health and maintain some resilience especially when pressure mounts. Recently, there have been a lot of conversations about mental health in South Africa. According to the World Health Organization (WHO), gender is a critical determinant of mental health and mental illness. Gender determines the difference in power and control that men and women have over the socioeconomic factors of their mental health and their exposure to specific mental health risks.
“Women are under immense pressure to perform in various spheres of their lives. Juggling a career, motherhood and marriage or a relationship can be emotionally and physically taxing to the extent of affecting one’s health, especially mental health. It is therefore imperative that women take good care of their health and wellbeing amid the demands of a competitive and fast paced lifestyle presented by the demands of modern society,” says Dube.
Depression is not only the most prevalent women’s mental health problem but may be more persistent in women than it is in men. There is more research needed to determine the reasons for this and what can be done to address it.
This Women’s Month, Dube says women should feel encouraged to be proactive about their own career development, and about helping other women to grow – both personally and professionally.
“As women we should be firm believers in one another. We hold the keys to opening doors for other women. By creating a support structure for one another, we can create phenomenal opportunities to make a difference for fellow women, with the aim of creating leaders and catalysing empowerment that has a ripple effect, benefiting all of society and the economy as a whole. Studies have revealed that women reinvest up to 90% of their income into their families compared to men who reinvest 30-40%. This has far reaching socio-economic gains for any society,” concludes Dube.
Leaderex Drives Digital Transformation Agenda For 2018 Summit
Leaderex, Africa’s largest gathering of business leaders, professionals and entrepreneurs, returns to Johannesburg on 4 September 2018.
Building on a successful debut in 2015, the organisers, Leader.co.za, in association with the JSE and leading think tanks, will host 250 masterclasses on key priority areas to drive digital transformation, including agile leadership, innovation, fintech and blockchain, AI, IoT, ecommerce and the future of work.
“Our programme has been designed around peer-based learning, allowing participants to gain practical knowledge from the trenches, engage with the best in the business, and thrive in a disrupted world,” says Leader.co.za.
Over five hundred CEOs and industry leaders will share actionable insights and advice on the day, representing one of the largest collaborations of its kind in the country.
Delegates will have the opportunity to connect with incubators, accelerators and start-up platforms, explore MBA programmes and business schools, and participate in one-on-one sessions with respected coaches and consultants.
South Africa’s lack of a savings culture will be another talking point, and investment vehicles, from tax-free savings to ETFs, will be thoroughly unpacked.
“We are pleased to be working with Leaderex again this year because we have seen the impact that the event has had since inception,” adds Mpho Ledwaba, Head of Marketing at the Johannesburg Stock Exchange (JSE).
For executives and entrepreneurs looking to unlock value through new technologies and ways of thinking, Leaderex 2018 represents a highlight on the business calendar.
Tickets can be purchased online at www.leaderex.com.
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