The Global Entrepreneurship Monitor (GEM) report provides valuable insights into the entrepreneurial ecosystem of various countries, including South Africa. This article compares the GEM statistics for South Africa from 2020 to 2023, focusing on fear of failure, perceived opportunities, and total early-stage entrepreneurial activity.
1. Fear of Failure
In 2020, South Africa reported a fear of failure rate of 43.8%, indicating that nearly 44% of the population feared starting a business due to fear of failure. This percentage decreased to 40.6% in 2022 and further reduced to 38.5% in 2023. This downward trend suggests an improvement in the entrepreneurial mindset, with fewer individuals held back by fear of failure.
2. Perceived Opportunities
The perceived opportunities indicator measures the percentage of the population that sees opportunities to start a business. In 2020, this figure stood at 34.4%, which increased to 37.4% in 2022 and 40.1% in 2023. This growth indicates a rising number of individuals recognizing potential business opportunities, a positive sign for the country’s entrepreneurial landscape.
3. Total Early-Stage Entrepreneurial Activity (TEA)
TEA measures the percentage of the population involved in starting or running a business. In 2020, South Africa’s TEA rate was 11.4%, which decreased to 10.4% in 2022. However, there was a significant increase to 13.4% in 2023, indicating a growing number of individuals engaging in early-stage entrepreneurial activities.
The significant growth in total early-stage entrepreneurial activity in 2023 indicates a thriving entrepreneurial ecosystem. These findings highlight the progress made in fostering a supportive environment for entrepreneurs in South Africa. Now, we need to align ESD to this.
Note: The statistics used in this article are based on the Global Entrepreneurship Monitor reports for South Africa in 2020, 2022, and 2023.
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