INTRODUCTION TO ECONOMIC DEVELOPMENT (ED) IN SOUTH AFRICA

Economic Development in South Africa has been slow and although various efforts and programs have been put in place by Government, private sector involvement and a look at the broader eco system has become absolutely necessary. ED is a critical aspect of South Africa’s holistic growth and success as a nation.

Entrepreneurship is the back bone of any successful economy and is at the heart of innovation. With the many challenges we face as a nation, the time for economic, social and environmental inclusion is now.

Unemployment stands at 24.9 % according to the quarterly labour force survey. The SMME start-up failure rate in SA is at around 95% according to SASMEF. There are a number of reasons for this with the top three listed below:

  • Lack of suitable low cost funding for early stages of business growth. This is when the live business model still has to be tested and takes place during the 1st year of operating. More so, the lack of other non-monetary critical resources also hinders the growth of a new business.
  • Lack of business mentorship, training and support to new business owners. Mentorship has for many years been seen as an add on benefit to a start-up, statistics gathered from start-ups in recent years show that mentorship, training other non-monetary mechanisms are critical to the success of a new business.
  • Lack of access to larger deal flows and slow turnaround times. There is also an overall lack of beneficiation strategies across sectors, this will allow SMME’s to participate in the value chain even if they do not secure the deals.

Upon examining recent developments, it was clear to us that Atlantis enjoyed support across all three spheres of the development ecosystem. The information gathered on existing development plans will be used to help us unlock various opportunities.