Share

Mentorship needed for entrepreneurial success in SA - CEO

Cape Town - The failure rate of start-ups in South Africa is too high and mentorship could be what is needed, according to Adrian Gore, founder and CEO of the Discovery Group.

In his view, "old retired white guys" could give back by helping start-ups and add value through mentorship.

"Perhaps the focus in SA should be on creating opportunities and then the natural entrepreneurs will respond," Gore said at a business breakfast hosted by Deloitte and Accelerate Cape Town on Thursday.

"It is about tech support, training and working with communities to identify challenges and then addressing the problems and needs in the communities in an entrepreneurial way," he said.

Following discussions with Minister of Finance Pravin Gordhan post Nenegate in January 2016, the CEOs Initiative SME work stream, led by Gore and Bidvest founder Brian Joffe, brought together experts in the public, private and NGO sectors to explore solutions for stimulating entrepreneurial activity. One of the outcomes was the set-up of an SME Fund.

"Yes, SA needs jobs or we run the risk of disaster with an army of 5 million unemployed people. If you have no job, you have no hope and no self-esteem," said Gore.

"But who creates jobs? Big business and government can't create jobs. Government has budget constraints and big business grows through efficiencies. Only entrepreneurs and SMEs create jobs. That is why the SME Fund wants to stimulate this sector by creating a proper environment."

READ: Innovating with the right mentorship is key

The aim is to create a network for entrepreneurs. R1.5bn has already been raised for the project.

"Where will it lead to? I do not know. As we go along we will learn and listen, but it captures the intent and goodwill of business," said Gore.

"Successful companies make a country more efficient. You don’t have to export to create jobs. The supply chain of a company can, for instance, be used to help start-ups."

The aim is for a successful SME Fund to create a knock-on effect.

"I hope the structures we are creating will make a more viable business sector. Small businesses become medium-sized businesses if they are successful and then they create jobs. We should try to coordinate all our lofty goals," said Gore.

"We need to celebrate successful entrepreneurs and maybe also do entrepreneurial training in schools."

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders