Innovation key to growth, Minister tells entrepreneurs

18 November 2015

 

Several Johannesburg entrepreneurs took advantage of the opportunity presented by the Global Entrepreneurship Week (GEW) to gain invaluable insight into business, showcase their products and network with peers.

 

Held at the Gordon Institute of Business Science (GIBS) in Sandton this week, the GEW is a precursor to the Global Entrepreneurship Congress (GEC) to be hosted by the City of Johannesburg in 2017. It will be the first time that the congress is held on African soil.

Speaking to more than 500 delegates, who included academics and policymakers, Small Business Development Minister Lindiwe Zulu said there was a need in South Africa for innovative ideas to develop and hone business and entrepreneurial skills to build a thriving economy.

“The GEW is one of the world’s largest celebrations of entrepreneurs, innovators and job creators, especially those who launch start-ups that bring ideas to life, drive economic growth and expand the frontiers of human fulfilment. Business failure is often attributed to the lack of entrepreneurial knowledge and skills such as innovation and risk-taking. These should therefore not be overlooked as essential ingredients to SMME success,” said Minister Zulu.

She said in a bid to improve business and entrepreneurial skills, her department, in partnership with technical, vocational, education and training colleges, would soon launch centres of entrepreneurship in all provinces.

She also stressed the importance of meeting the National Development Plan (NDP) target, which sets out to create 11 million jobs by 2030. To reach this target, Minister Zulu said, South Africa required SMME growth of 20% a year.

“This means that small businesses will have to contribute roughly 800 000 jobs a year until 2030. In South Africa, SMMEs contribute 55% to the GDP and are estimated to be more than a two million in number,” she said.

She added that there had been a steady increase in the number of start-ups in the country. A recent survey also showed that there had been a spike in the number of start-ups led by blacks.

“It’s encouraging that the survey’s results reveal a marked change in the start-up landscape ... Despite the upward trend in the number of SMMEs registered since 2000, there is growing consensus that South Africa’s business activity rate still lags behind its BRICS’ peers,” she said.

Speaking during a plenary session on entrepreneurial inspiration, Xolani Ndzaba, CEO of Lethabo Milling, said the key to success for any entrepreneur was identifying key market gaps and to be resilient.

“Being resilient and adaptive is extremely important. Being an entrepreneur is tough but through discipline, opportunities are boundless,” said Ndzaba.

SMMEs and supporting agencies exhibiting at the GEW included the Small Enterprise Finance Agency, ABSA, SABS Design Institute, Brains Empowerment, Mthuzimele Services and Kwa-Sisonke Freight Logistics.