Entrepreneurship is a growing focus of business development as it drives economic growth, employment and societal advancement as the number of entrepreneurial entities of all sizes grow. Due to the success of some of the world’s biggest corporations, which were started by entrepreneurs – sometimes in garages, bedrooms and basement – there is a growing of acceptance of entrepreneurship as a career path for many young people. In South Africa it carries even greater potential, as it has been posited as one of the solutions to the country’s high levels of youth unemployment.
Shifting perceptions to be more accepting of entrepreneurship as a career option is a critical building block to establishing a stronger entrepreneurial ecosystem. Trialogue’s Business in Society Conference 2024 hosted a panel discussion in which thought leaders debated strategies for growing the country’s entrepreneurial space in the interests of a building a more dynamic economy.
The session on enabling inclusive and sustainable entrepreneurship included Absa corporate citizenship managing executive Dr Steven Zwane, Gordon Institute of Business Science Associate Professor Anastacia Mamabolo, UVU Africa Group CEO Ian Merrington and entrepreneur and founder of PhalMosh Poultry Farm Mankoana Pheona Phalane. The panellists considered the attitudes and support needed to encourage entrepreneurial enterprise.
Shift mindsets to create opportunities for SA youth
South African youth find themselves under pressure to secure employment in an environment where job opportunities are sorely lacking. Having recognised the need for a social construct that embraces entrepreneurship, Absa is investing in entepreneurship education at high school level as a catalyst to addressing youth unemployment.
Zwane told conference delegates that investment in shifting this paradigm is not only a means to creating employment, but also encourages a problem-solving mentality to see existing opportunities, create new ones and drive higher education ambitions. He acknowledged the challenges in the shortage of qualified teachers, infrastructure and resources, but urged government to make space for entrepreneurship education that enables and draws entrepreneurship into the broader ecosystem.
Mamabolo noted that greater acceptance of entrepreneurship in society is necessary, even from business itself. Businesses need to create a conducive environment for entrepreneurship to thrive, rewarding calculated risks that deliver innovation, she noted.
Speaking to the rise of the ‘side-hustle’, she said: “One of the important things is allowing side hustles within organisations. We are pleading to HR managers to develop policies that are really supportive of side hustles within businesses because we’ve learnt that employees with side hustles are more creative and productive.”
Driving inclusivity in entrepreneurship
Mamabolo drew attention to the need for a better understanding of and support for inclusivity in the entrepreneurial space. Effort is needed to support the intergenerational opportunity that exists in many entrepreneurial endeavours to transform them from jobs-for-life to legacy businesses that can support multiple generations. “We are behind in this…a lot of businesses are struggling because there isn’t proper succession planning,” she explained.
While she spoke to the need for social diversity and inclusion in building local entrepreneurship as well as the intergenerational opportunities, she cautioned against taking a blanket approach to growing entrepreneurial enterprises. “There are individuals whose motive is to just run that business, not to grow that business. Others want to grow, and it is to these that we need to apply diagnostic tools.”
Similarly, employing a top-down approach to engaging informal and township entrepreneurs denies the realities of the ‘shadow’ entrepreneurial ecosystem that exists in these contexts. Mamabolo noted that the many entrepreneurs excluded from this top-down approach are familiar and comfortable with their own ecosystems, which may work quite differently to the mainstream ecosystem.
She stressed the importance of intermediaries to help these entrepreneurs navigate the growth process in a way that respects the networks in which they currently operate while helping them gain access to more formal, previously impenetrable networks.
“The important thing is for us to go to the entrepreneurs in the townships because they will not come to the big cities. Township businesses are embedded within the community, so community is the livelihood of the business. If we don’t go to them there will never be a point where they are part and parcel of the ecosystem and not destroy the connections and interlinkages they have formulated to deal with the institutional voids that we have in entrepreneurship.”
Strategies to support emerging entrepreneurs
Likening the entrepreneurial experience to one of creativity rather than science, Merrington advocated for an individual approach to supporting entrepreneurs from ideation to growth. “When we speak about models we mustn’t let the past precedent limit us. We are only limited by the extent of our imagination.”
He noted the importance of meeting individual entrepreneurs at the point they are at in their business life cycle with the understanding required for that stage. Where the early phase might require a deep understanding of their personal capacity and market demand, progressing them to ideation might require helping them to navigate partnerships and other relationships. Bringing enterprises to scale benefits from deeper expertise in the thematic area to drive competency in the particular sector they are in.
Phalane spoke to her experience of this mentorship process, which helped her build her professional character as well as formalise her business and compliance.
Qualities that drive successful entrepreneurship
While identifying the qualities that guarantee entrepreneurial success can be hard to define, Merrington noted several characteristics that improve the likelihood of succeeding. Besides being resilient, he listed curiosity and flexibility as the necessary qualities of an entrepreneur. A willingness to listen to advice and act on it is also required, as it the ability to embrace technology and change.
“We’re at an inflection point in a wave of technology that’s as big as the desktop computer and moving from analogue to digital. Generative AI (artificial intelligence) is going to have the same effect on us, and the ability embrace technology no matter what area of entrepreneurship you’re operating in is critical. Those who can embrace change, technology and innovation in their business model are going to give themselves an advantage.”
Finally, an understanding of the market and a willingness to learn is important to succeeding as an entrepreneur.
As to how to attract potential sponsors and mentors, Phalane encouraged entrepreneurs to secure their compliance while taking advantage of inexpensive avenues such as social media to publicise their ideas. “Be out there. Tell your story. Advertise. Go to programmes that help young people, women and people in rural areas. Don’t just sit with your idea and think you can get assistance.”
Watch the full panel discussion from Trialogue’s Business in Society Conference 2024.
