Seed Academy, a for-profit social enterprise organization, did a research in South Africa (SA) to determine the relationship between entrepreneurship and job creation in the country. The tabled results established that although there is high entrepreneurial spirit across the country, they are not leading to job creations to the levels urgently needed by SA.
No Job Creation in the midst of High Entrepreneurial Spirit
The survey found out that while 50% of entrepreneurs ventured into business for the right reasons, only about 4% of such businesses employ more than 10 staff. Even more alarming, is the fact that up to 38% of such startup entrepreneurs do not employ any staff at all in their businesses.
Donna Rachelson, the CEO of Seed Academy complained, “Job creation should be a key outcome of entrepreneurial activity. Yet a large proportion of our entrepreneurs have no employees.”
Though little traction for Startups, Businesses Survival Rates are increasing
The survey also revealed that majority of the startup businesses are taking a long time to register some traction. There some businesses that have been in operation for half a decade with little to no sales.
However, …read more