7 things keeping South Africans back from starting their own business
A report by Old Mutual reveals the major barriers South Africans believe they encounter when trying to open their own business.
According to the OECD’s Economic Survey of South Africa 2017 the South African government has taken steps to ease requirements for starting a business, but red tape remains a burden, while the quality of the education system and lack of work experience contribute to gaps in entrepreneurial skills.
The report found that despite low entrepreneurial activity among the working population, there is a strong desire for entrepreneurial pursuits in South Africa, where entrepreneurship is seen as a very desirable career option, and the fear of failure is low, compared to other OECD regions.
Old Mutual said it asked those respondents who are keen to start their own business what is holding them back, what is stopping them
from putting thoughts into action?
Unsurprisingly, a lack of funding is cited as the primary barrier, particularly by very low income respondents.
A number of other reasons are noted at significant levels including lack of confidence, finding the right idea, lack of time and
fear of losing a steady income – the latter being more important for R40 000+.
The findings are taken from Old Mutual’s Key Savings & Investment Trends report 2017, which separated respondents into various age group brackets and used the following 5 income brackets:
- Less than R6,000 – 22%
- R6,000 – R13,999 – 28%
- R14,000 – R19,999 – 14%
- R20,000 – R39,999 – 22%
- R40,000-plus – 14%
Read: 4 graphs that show why it’s so tough to be an entrepreneur in South Africa
Loading ...