Small businesses have often been referred to as the ‘backbone of the South African economy’ – and for good reason.
A recent report by McKinsey found that pre-pandemic, SMEs represented more than 98% of the total businesses in South Africa and employed between 50% – 60% of the workforce. These findings paint a telling picture – one which illustrates the relative importance of small businesses, not only as an engine of economic growth but as a possible solution to several pressing issues.
Arguably, the greatest of these issues is youth unemployment. Recent estimates put South Africa’s youth unemployment amongst individuals aged 15-24 years old, at more than 60% – one of the highest in the world. Given the level at which the small business sector can generate the number of jobs needed to bridge the gap, more focus needs to be placed on nurturing the next generation of entrepreneurs, particularly young women.
There are those who would argue that school-leavers who struggle to find employment in the formal job market, should consider entrepreneurship as a viable alternative. However, a closer look at the ambitions of South African youth will reveal that starting a business is seen as being ‘plan B’ – a failsafe – rather than a first-choice career.
In order for entrepreneurship to move further up the rungs of possibility in the minds of young people, business skills and acumen need to be embedded into curricula from as early on in childhood development as possible. In addition, young people in South Africa – particularly those who have the drive and natural aptitude for entrepreneurship – need to have role models.
The Global Entrepreneurship Monitor (GEM) highlights in its latest report that entrepreneurship matters greatly as a key catalyst for development. “It is an important driver for economic recovery: from the effects of the Covid-19 pandemic, as well as recent shocks such as the war between Russia and Ukraine which have impacted supply chains and triggered rising energy costs.”
In a business environment in which the vast majority of small businesses fail within just three years, those business owners who are able to survive and thrive, do so against the odds. There are countless examples of these stories of unrelenting self-belief and resilience, but too often they do not receive the attention and recognition they deserve. This is where competitions like Business Partners Ltd Entrepreneur of the Year® can make a much-needed difference.
This year specifically, the competition will recognise the local entrepreneurs who have braved uncharted territory and made it through the turbulence of the pandemic years. The small business sector was one of the hardest hit industries by the onset of Covid-19 – the unfortunate reality is that many were forced to shut their doors. Those who were able to navigate their way through lockdown legislation, devise creative solutions to operate within an entirely new set of parameters, and emerge post-pandemic, should be recognised and honoured for their achievements.
In general, competitions and awards platforms like Business Partners Ltd Entrepreneur of the Year® play a central role in foregrounding proudly South African success stories. Without platforms of this nature, the hard work and perseverance of thousands of entrepreneurs would go unnoticed and the prospect of entrepreneurial endeavour and excellence would fade further into the periphery.
This year, as in other years, we expect to see entrants from every stratum of society, with businesses spanning a range of sectors. In this way, Business Partners Ltd Entrepreneur of the Year® will also serve as a tangible cross-section of possibility and a practical demonstration that there are indeed opportunities around every corner if we only but develop the eye to identity them.
Thus far, the winners of the competition have been diverse in their backgrounds, demographic profiles, areas of expertise and views of the world. They do however all share an unyielding positive outlook, not only in terms of their business goals but in terms of what they envision for themselves, their families and their communities.
Traditionally, the business world has always held IQ, or one’s intelligence quotient in high esteem. Recent years have seen emotional intelligence or EQ earning its place in the sun alongside intellectual ability. But the winners of Business Partners Ltd Entrepreneur of the Year® share what could be referred to as a high adversity quotient – the can-do mindset and sense of tenacity needed to weather the storm and seize the opportune moment.
As we welcome entrepreneurs from across the country to enter this year’s contest before the closing date of August 31, 2023, we look forward to celebrating with the South Africans who will become bastions of hope and inspiration for millions of aspiring entrepreneurs.
The more platforms that can be built to recognise the accomplishments of entrepreneurs, the more we will succeed at nurturing and shaping young people into the business leaders they have the potential to become.
David Morobe is the spokesperson for the Business Partners Entrepreneur of the Year Competition. Morobe is also the Executive General Manager for Impact Investing at Business Partners Limited.
** The views expressed do not necessarily reflect the views of Independent Media or IOL.
BUSINESS REPORT