Entrepreneurship in Africa

Africa is surely a developing country. Thus, entrepreneurship and social innovation will play a vital role to its growth and economic boom. That’s why the government proposes policies and developments in terms of promoting entrepreneurship and ecosystem to foster the entrepreneurial thinking of Africans. One of their ways to start is through education. Problem is, South Africa has its own weakness in terms of economic and historical past that is a big hindrance on achieving the future growth and success of the country.

Since 1994 where the first democratic elections were held, the government has realized the important role of entrepreneurship to the point that it can change the totality of the economic status of the nation. The government realizes that in order to change the socio-economic status of the country, they should instill entrepreneurship at the grass roots level and up despite high unemployment, deep social and class divides and a highly unequal society.

The government commences of the initiatives like:

1. Policies to assist and support SMEs (Small and Medium Enterprises).

2. Also, the country’s trade and industry department started the competitiveness fund that provides financial assistance to entrepreneurs to cover around 50% of its costs or capital.

3. Government organizations run programs to encourage youth entrepreneurship.

4. National Youth Development Agency offers support to youth in finding resources for business and business development.

5. Province-specific efforts are also present on developing entrepreneurship on specific provinces to support the specific needs of people to these communities and areas.

Today, entrepreneurship is the primary priority of the government and receives continued emphasis in schools and universities, though the gap between the idea and practical innovation is still in the process. A good number of initiatives have been developed to encourage entrepreneurial thinking because it is believed to the start of it all. Thus, basic education and training were established to adults to gain skills and training.

Entrepreneurship combined with social innovation is the primary key to the nation’s success which gained momentum the last few years. As a matter of fact, the country has seen in the past few years a drive toward social innovation, especially in entrepreneurship. With 10% of the South African population living in urban informal settlements, this remains a social issue for the government, however, it is also a potential market that budding entrepreneurs.

Today, the unemployment is still at 27%, still a primary battle in the African economy. But, the potential for entrepreneurship, which is the key to success, is also great. The solution could be proper implementation of the government’s initiatives that push bigger hopes to entrepreneurial thinking of its people. If this is made possible, the coming years of Africa would be their start on becoming a country that they deserve.

Humphrey Kariuki Ndgewa, CEO of Dalbit International, has been blogging regularly since last year. Drawing on his vast experience as an industrialist, Humphrey writes about balancing business-minded innovation and sustainable development.