A recent survey released by Seed Academy, the school of entrepreneurship, has revealed the challenges faced by many South African entrepreneurs. Polling more than 900 startup entrepreneurs, the study found that amongst other issues, finding customers, raising startup capital and a lack of guidance, are the main challenges faced by entrepreneurs.
In addition, many entrepreneurs take on many roles within their businesses, which further escalates the problem as some individuals end up spreading themselves too thin.
Many people start their own businesses after identifying gaps in their respective markets. However, a small percentage of entrepreneurs are forced into the industry as they’re unable to find secure jobs.
What solutions should be offered to resolve these problems?
Insufficient funding has been identified as one of the prominent issues. As a solution to raising enough capital, suggestions including tax incentives for individuals who can provide capital for startups, and online platforms where these individuals can connect, have been raised. Another solution is the improvement of marketing and services provided by Development Financial Institutions (DFIs). To further support entrepreneurs, another suggestion is for DFIs to mentor these entrepreneurs and provide post investment management.
Female entrepreneurship is another element lacking in South Africa, and which requires attention in order to develop the industry. In this regard, female mentors are needed to provide support to their fellow female entrepreneurs.
Teaching entrepreneurial skills as early as primary school will also go along way in cultivating entrepreneurs and ensuring that they have the skills required later in life.
Read why government has a significant role to play in supporting entrepreneurs.