Submitted:
09 December 2025
Posted:
10 December 2025
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Abstract
Keywords:
1. Introduction
2. Literature Considerations
| Government Support | The efficacy of government support programs for small enterprises significantly impacts entrepreneurial success. |
| Education in Entrepreneurship | Enhanced entrepreneurship education and training are necessary to cultivate essential skills and tackle challenges such as business failures. |
| Policy and Infrastructure | Policy changes, a robust entrepreneurial culture, and enhancements in physical infrastructure are essential for creating a more supportive environment. |
| Access to Funding | Numerous entrepreneurs encounter difficulties in obtaining essential funding, encompassing initial capital and continuous financial support for expansion. The risk-averse nature of financial institutions and the necessity for collateral, often absent among entrepreneurs, further complicates the situation. |
| Bureaucracy and Red Tape | The regulatory environment in South Africa presents significant challenges, often characterised by bureaucracy and red tape, which can impede entrepreneurs' focus on their business operations. |
| Skills Shortage | A deficiency in critical business skills, including financial management, marketing, and operations, can adversely affect the success of numerous businesses, especially during their initial phases. |
| Infrastructure Constraints | Insufficient infrastructure, characterised by unreliable electricity supply and limited transportation options, can markedly elevate operational costs for businesses. |
| Crime and Corruption | The elevated crime rate and pervasive corruption in South Africa present substantial challenges for businesses, adversely affecting profitability, security, and overall stability. |
| Energy security | Energy security is compromised by loadshedding and other energy supply challenges, which adversely affect business productivity and operations nationwide. |
| Market Competition | South Africa exhibits a competitive market landscape, necessitating that entrepreneurs demonstrate innovation and adaptability for success. |
| Macroeconomic Factors | Weak economic conditions and inadequate support for businesses can significantly influence entrepreneurial activity. |
| Early-Stage Entrepreneurial Activity (TEA) | The Total Early-Stage Entrepreneurial Activity (TEA) level has varied considerably in previous years. In 2021, TEA was 17.5%, decreased to 8.5% in 2022, and subsequently increased to 11.1% in 2023. This signifies a turbulent entrepreneurial landscape shaped by several external influences. |
| Gender Disparities | Men exhibit a marginally higher propensity to initiate firms than women, with male Total Entrepreneurial Activity (TEA) at 12.7% against female TEA at 9.7%. This gender discrepancy underscores the necessity for focused assistance to promote female entrepreneurship. |
| Motivations for Entrepreneurship | A considerable segment of South African entrepreneurs is motivated by necessity rather than opportunity. This tendency is especially evident among males, who frequently establish firms to generate income owing to limited employment prospects. |
| Impact of COVID-19 | The COVID-19 epidemic significantly affected business endeavors. Lockdowns and limitations impeded commerce and markets, resulting in a decrease in firm ownership and entrepreneurial aspirations. In 2023, the proportion of adults planning to initiate a new business over the following three years declined to 10%, marking the lowest level in two decades. |
| Entrepreneurial Environment | The quality of South Africa's entrepreneurial ecosystem has seen variations. The GEM 2023/2024 Global Report indicated a decrease in the overall entrepreneurial environment score from 4.1 in 2022 to 3.6 in 2023. This number encompasses several elements, such as financial accessibility, governmental policy, and market dynamics. |
| Challenges Faced by Entrepreneurs | Entrepreneurs in South Africa encounter several obstacles, such as restricted access to capital, insufficient support systems, and elevated competitive levels. These impediments can obstruct the development and viability of nascent enterprises. |
| Positive Signals | Notwithstanding the hurdles, there are encouraging indicators, such as the resurgence of the company departure rate to pre-pandemic levels. This indicates the perseverance of enterprises maneuvering through the complex economic landscape. |
3. Entrepreneurship Trait and Process: The Influence of Culture and Individuals
4. Research Methodology
5. Discussion of Results
- Table 1. 1: Demographic Data of the Participants.







6. Discussion of Research Findings
7. The Diverse Perspectives of Entrepreneurship in Enhancing Developments
8. Concluding Remarks
9. Recommendations
10. Declarations
Funding
Availability of Data and Materials
Acknowledgement
References
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| Low Overall Activity | The total entrepreneurial activity (TEA) rate in South Africa exhibits fluctuations, yet it typically remains below the average observed in efficiency-driven economies. |
| Incentives and Anxiety: | A considerable number of individuals recognise opportunities; however, many are reluctant to initiate businesses due to the apprehension of failure. |
| Emphasis on Survival: | The main motivation for numerous new entrepreneurs is to generate income, highlighting the issues of unemployment and poverty. |
| Restricted Digital Integration: | Although certain entrepreneurs expect a rise in digital technology utilisation, a limited proportion possess customers beyond South Africa. |
| Challenges to Ecosystems: | The entrepreneurial ecosystem faces challenges such as bureaucratic obstacles, insufficient research and development, and an absence of entrepreneurship education within educational institutions. |
| Decrease in Established Business Ownership: |
There has been a decline in the number of established businesses in South Africa. |
| Elevated Business Exit Rate: |
A greater number of businesses are closing than those being established. |
| Prospects in Information and Communication Technology: |
Rapid advancements in ICT, attributed to the fourth industrial revolution, are perceived as potential catalysts for entrepreneurial growth, despite existing challenges. |
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