All data is delayed
Loading...
See More

63% of small businesses fail

Nov 11 2010 14:03 I-Net Bridge

Related Articles

Exciting times for property entrepreneurs

Bridging the gap

French connection

Fearless pioneer

Start-ups might not be the business

'I fired myself as CEO'

 
Johannesburg - Small business failure rates are as high as 63% in the first two years of trading, Absa said on Thursday at its Small Business Roundtable in Johannesburg.

"The biggest challenge that the country faces is creating employment through building a culture of entrepreneurship, but this has been difficult.
   
"Entrepreneurs have a certain set of skills and don't have the funds to employ the other sets to run a successful business," Nico Jacobs, head of Absa Small Business said.
 
Jacobs highlighted the importance of small business to the economy.
   
"Small businesses have moved from employing 18% of the South African employable population in 1998 to more than 60% today."

Reasons why businesses fail included poor management as well as lack of structure and infrastructure.
 
However, the lack of financial know-how was the biggest reason.

"But this has not stopped new entrepreneurs from entering the market," Jacobs said.
 
"Currently the new entrants mainly range from people who are unemployed, retrenched or retirees who realise they can't survive on their pension.

"They are then forced to start their own business, but are not equipped to handle the rigours, do not have the financial support or knowledge."

Jacobs added that in order to tackle this issue, Absa Small Business had developed a classroom-based mentoring programme – the Enterprise Growth Programme (EGP).

"One of the key highlights of this programme is that it will help develop entrepreneurial skills, teach participants how to effectively implement their business plans, understand the various aspects of a business and how they all tie in together."
   
The EGP currently operates in KwaZulu Natal, the Western Cape, Limpopo and Gauteng.
 
"The national roll-out is scheduled for February 2011."
absa  |  entrepreneurs
NEXT ON FIN24X

Sound start-up advice

2014-11-25 07:35

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
15 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Goalkeeper saves five penalties with his FACE!

Nothing, and we mean nothing, will keep goalkeeper Scott Stirling from stopping the ball!

 
 

Men24.com

Hottie of the day: Jesselyn
This invention makes farts smell like chocolate!
11 things men don’t know about their clothes
Hilarious mortal kombat elevator prank!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...