Business incubators can cut high failure rate of small businesses
Entrepreneurs and innovators should be given support and resources to build and maintain a start-up
For years we’ve been told entrepreneurship and small businesses are key to economic and job growth. But all too often small businesses aren’t put in a position to succeed. That’s especially true in SA. According to the National Development Plan (NDP), small, medium and micro enterprises (SMMEs) will contribute 60%-80% to future GDP growth and generate 90% of 11-million new jobs in our country by 2030.
But there’s little chance of that happening while more than 70% of new businesses fail within less than two years of being in operation. While some level of failure is to be expected (entrepreneurship requires a higher tolerance for risk), that number is far too high. We need to ask why so many small businesses fail so quickly, and what can be done to lower failure rates...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.