Entrepreneurship: The Key to Economic Growth in South Africa

Nov 16, 2018 Foundation News 881 Views

It is safe to say that economically, South Africa has had a difficult year. This year it was stated that we are currently in a recession. In 2017, the World Bank downgraded the county, forecasting our growth to 0.6 per cent from 1.1 per cent at the beginning of that year. The saving grace of South Africa is the need for more entrepreneurs. Not only does this have significant benefit for economic growth but it fosters innovations which in turn lead to job creation. However, is entrepreneurship something that is being cultivated in children while they are at school or is it something only looked at once they reach the tertiary stage of their education?

Young Entrepreneurs along with the Young Entrepreneurs’ Foundation answers this vital question. We as a foundation understand the essential role this kind of programmes plays in the overall developments of not only the students participating in the programmes, but this holds great possibility and opportunity in the grander scheme of things.

Global entrepreneurship week

As we enter Global Entrepreneurship Week, it is important to stress and emphasize the importance of this form of education, particularly to children at an impressionable age. Why? Because merely starting a business can seem a daunting task when you are not well equipped with the right knowledge and tools to turn an idea into a company that will help later employee people, generate income and grow.

Due to the lack of growth our country is currently facing, there seems to be a massive responsibility now placed on the small businesses and entrepreneurs to turn things around and create more employment opportunities and furthermore improves the state of our country’s economy.

Therefore, programmes like Young Entrepreneurs that teach not only skills that will aid those in creating, managing and growing a business but furthermore educates young people in financial literacy, creates a more conducive environment for people to start businesses as they are equipped with all the tool necessary to make a success of the venture.

Let’s look at the stats and how entrepreneurship can contribute to economic growth

The national development plan, pieced together by government stated that it falls to the small business and those growing to create some 90 per cent of new jobs with the intent to reduce unemployment to 6 per cent in the year 2030. This is not a small task, and it will take many resources to come near those figures. What would that mean for the country? It means that 11 million jobs would need to be created in the next 12 years, along with an average economic growth of 5.4 per cent every year over this time to achieve this goal. But this can only be obtained through working together and placing emphasis on entrepreneurship and enterprise building.

Young Entrepreneurs aims to create an environment for young people to venture out and create opportunities for themselves and others. These opportunities create a favourable landscape for economic growth. How do you get to play a role in the upliftment and growth of the country? By standing with the Young Entrepreneurs foundation and impacting the lives of young people to make these changings that are the benefit of the country as a whole.