63% of small businesses fail
"The biggest challenge that the country faces is creating employment through building a culture of entrepreneurship, but this has been difficult.
"Entrepreneurs have a certain set of skills and don't have the funds to employ the other sets to run a successful business," Nico Jacobs, head of Absa Small Business said.
Jacobs highlighted the importance of small business to the economy.
"Small businesses have moved from employing 18% of the South African employable population in 1998 to more than 60% today."
Reasons why businesses fail included poor management as well as lack of structure and infrastructure.
However, the lack of financial know-how was the biggest reason.
"But this has not stopped new entrepreneurs from entering the market," Jacobs said.
"Currently the new entrants mainly range from people who are unemployed, retrenched or retirees who realise they can't survive on their pension.
"They are then forced to start their own business, but are not equipped to handle the rigours, do not have the financial support or knowledge."
Jacobs added that in order to tackle this issue, Absa Small Business had developed a classroom-based mentoring programme – the Enterprise Growth Programme (EGP).
"One of the key highlights of this programme is that it will help develop entrepreneurial skills, teach participants how to effectively implement their business plans, understand the various aspects of a business and how they all tie in together."
The EGP currently operates in KwaZulu Natal, the Western Cape, Limpopo and Gauteng.
Reference: Https://www.fin24.com
We do need these programs especially in Poor performing provinces
Well thought Mr Jacobs because really people fail just because they lack some skills and therefore need to be equipped.
ReplyDeletePeople like Nico Jacobs should be given some round of applause... I mean Its good to hear that we still have those people in this world of selfishness, people who don't think only for themselves but for others too... That is very rare nowadays.
ReplyDeleteSmall businesses need to be equipped and developing entrepreneurs need to be trained in order to be able to take calculated risks and be able to compete with large businesses.
ReplyDeleteI say forward with the mentoring programme it is really needed.
ReplyDeleteMr Jacobs is such a hero.....people like him are really scarce these days. ...
ReplyDeleteThere are many people who are unemployed because they lack skills and qualifications so big up to Mr Jacobs. This will help to decrease the unemployment rate in our country. We really need people like him. Continue with your work and bring change to our country.
ReplyDeleteThey fail because they dont get enough support from other businesses there's too much competition instead.
ReplyDelete