Entrepreneurship Challenges

"Entrepreneurship is the form of creating and building something of value from nothing, in the midst of uncertainty and risk, and having the determination of succeed against all odds (B Eramus, J Strydom, S Kloppers,42). The state of entrepreneurship in South Africa is regarded as below what is necessary to support a consistently high level of economic growth, this is because its economy has declined over the past few decades. It needs to at least attain 6% GDP growth rate with the contribution of entrepreneurs, because they are responsible for growth and job creation to stimulate the economy but they cannot do this while they are still facing major hold backs and challenges. “Within a number of studies it is disclosed that lack of management skills and training is one of the most prevalent causes of general business failure amongst SMMEs in South Africa. In a survey conducted by Radipere and van Scheers (2005: 409) it was found that 90% of a sample of 1000 entrepreneurs “believe that small businesses fail due to a lack of managerial skills”( Tracking SMME Development in South Africa: Issues of Finance, Training and the Regulatory Environment,71)

Stating and discussing the main challenges

Challenges that entrepreneurs face in a South Africa are plenty. For example, Labour law and lack of enough business people involved in small businesses to create employment, "statistics reveal that the more flexible the Labour market is, the lower the entrepreneurs & unemployment rate" (B Eramus, J Strydom, S Kloppers,44). Low levels of education and training where people obtain entrepreneurial skills and background are also another challenge, social factors that don't encourage entrepreneurship as a career path of choice, lack of access t...

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...ely incentivize entrepreneurship through greater development of specialized economic zones, providing tax breaks for businesses below certain revenue thresholds and lowering barriers to entry to certain industries” ( SA entrepreneurs need a pik It up,19”).

South African is still a developing country but can do much better if it entrepreneurially goes under an economic construction, people need to be informed and engaged in the change. New entrepreneurs starting their business need to be aware of the new solutions and work together to make them come into action. They can also learn from Countries like the United States and England for an example; to get an idea on how to go further and avoid failure. Their mindset must be focused on a different form from now on; all these challenges can and will be defeated. It has came a long way and should keep pushing to succeed.