Are we failing to invest in local entrepreneurs and start-ups?
At the end of 2018 foreign investment in South African businesses stood at 446%. President Cyril Ramaphosa advised that he plans to increase this percentage even greater by 2023. That seems to be great news when you consider the growth it aims to achieve in the local business sector. As foreign investors receive a return on their investments the question in the air is, what about local business and their plans on investment?
South African entrepreneurs and start-ups are struggling to take off. According to SME South Africa, most small businesses did not survive beyond 5 years. Given these statistics, we might understand why much larger and successful companies steer away from investing in smaller businesses; the risk might be too high. Although after reading the above it seems as if it all ends there. However, for every problem, we could try and provide a solution. These small businesses and optimistic entrepreneurs might be sitting on gold, but the lack of many other facets could be the reason for its downfall.
In recent years the growth of incubators and accelerators has increased. Just doing a Google search will show you just how much its footprint in our country has grown. Yet the number of entrepreneurs and start-ups are still falling short on achieving their business goals. Could it be a lack of business knowledge? Even so, if experience and established companies are unable or not willing to invest in local start-ups and entrepreneurs then guidance and advice holds much value as well. A point in the right direction can go a long way according to an article from Talent Talks that guides on the topic. In the end, South Africa needs entrepreneurs as much as entrepreneurs need their country and countrymen.