South Africa probably has more than 2.5 million micro-enterprises, i.e. mostly informal businesses that employ fewer than 4 people. According to some estimates, between 30% and 70% of households in informal settlements are involved in some kind of income generation activity (Valodia, 2000, and Napier et al, 2002), and small businesses contribute an estimated 7 to 12% of South Africa’s GDP (Dewar 2005). How can these entrepreneurs take their business to the next level ? What sort of tools could possibly help them increase their profits and contribute further to South Africa’s prosperity?
By talking and listening to a representative sample of 500 such entrepreneurs, we have sought to identify some of these tools, the means that could help them and their businesses achieve their full potential, reduce poverty and share in South Africa’s economic growth. These tools aim at addressing some of the entrepreneurs’ most typical challenges, such as lack of access to finance, poor levels of managerial, financial and technical skills, or the lack of access to risk mitigation (insurance).
Thanks to this survey, we have a more precise idea of the needs of entrepreneurs, and are in a better position to develop products that can close the gap between what is currently on offer and what small entrepreneurs need most to expand their business.
