UWC Colloquium Monday 15th September
GEM in 1997
GEM in 2014
GEM Study • Most authoritative and informative study in the world • Used by policy makers in planning small business policies
What makes GEM Unique? • GEM studies individuals, their profile and characteristics such as perceptions, attitudes, aspirations and intentions • Fledgling businesses that have not yet started • New business start-ups • Established business owners
GEM Measures •TEA…early-stage entrepreneurial activity - nascent - new businesses
•GEM distinguishes between - opportunity - necessity - age - gender
GEM Objectives • To measure differences in the levels of entrepreneurial activity between countries • To uncover factors leading to the enhancement and hindrance of entrepreneurship • To suggest policies that may enhance the national level of entrepreneurship
0% Algeria India Libya Iran Vietnam Philippines Botswana Angola Uganda Ghana Malawi Nigeria Zambia Suriname Russia Malaysia Macedonia Croatia Poland Slovakia Hungary Romania Bosnia South Africa Guatemala Lithuania Estonia Latvia Jamaica China Uruguay Mexico Argentina Brazil Thailand Panama Peru Colombia Chile Indonesia Ecuador Italy Japan France Belgium Germany Spain Finland Greece Norway Slovenia Korea United Kingdom Czech Republic Taiwan Switzerland Portugal Sweden Puerto Rico Luxembourg Ireland Netherlands Israel Singapore Canada USA Trinidad & Tobago
Total entrepreneurial activity rates in GEM countries, 2013
45%
40%
35%
30%
25%
20%
15%
10%
5%
Factor-driven economies Efficiency-driven economies Innovation-driven economies
Relative rankings, 2002 - 2013 SA’s TEA ranking
SA’s TEA rate
Median
Year 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012
2013
20th out countries 22nd out countries 20th out countries 25th out countries 30th out countries 23rd out countries 35th out countries 27th out countries 29th out countries 22nd out countries 35th out countries
Number of positions above/ below median
of
37
6.3
19
1 below
of
31
4.3
16
6 below
of
34
5.4
17
3 below
of
34
5.2
17
8 below
of
42
5.3
21
9 below
of
43
7.8
22
1 below
of
54
5.9
27
8 below
of
59
8.9
30
3 above
of
54
9.1
27
2 below
of
69
7.3
9.6
12 below
of
67
10.6
10.3
1 above
Perceptions of good opportunities & capabilities in the adult population, 2001 2013
Potential entrepreneurs 2001 Perceive good opportunities 19.7 Perceive capabilities 30.4
2005 27.3 35.2
2009 35.4 35.5
2013 Ave SSA 37.8 74.5 42.7 78.9
Entrepreneurial attitudes in SA towards entrepreneurial intentions, 2003-2013
Entrepreneurial intentions Good career choice High status to successful entrepreneurs Media attention for entrepreneurship
2003 12.2 48.0* 48.0 47.5
2005 10.7 55.2 56.0 54.4
2009 13.3 63.7 64.0 63.9
2013 Ave SSA 15.4 58.3 74.0 77.8 74.7 80.2 78.4 77.5
Opportunity – and necessity-driven entrepreneurship in SA, 2001 - 2013
Necessity-driven (% of TEA) Opportunity-driven (% of TEA) Ration of Necessity vs. opportunity
2001
2005
2009
2013
Ave SSA
18.3
39.5
32.7
30.3
38.6
64.7
57.1
63.7
68.6
57.9
3.53
1.44
1.94
2.26
1.56
Entrepreneurial activity in South Africa by gender, 2002 - 2013 2002 2005 2009 Male - opportunity 3.9 3.4 4.6 - necessity 2.2 1.9 2.3 - total 7.3 5.9 7.2 Female - opportuntiy 2.7 2.1 3.0 - necessity 2.6 1.8 1.6 - total 5.8 4.5 4.7
2013 Ave SSA 8.8 21.7 3.3 10.2 12.3 32.4 5.8 17.3 3.1 12.0 9.0 29.9
Motivation for early-stage entrepreneurship by race, 2005 -2013
Black African - opportunity driven - necessity driven Coloured - opportuntiy driven - necessity driven Indian - opportunity driven - neccesity driven Whites - opportunity driven - necessity driven
2005 22.9% 29.3% 9.3% 2.1% 6.4% 3.6% 19.3% 3.6%
2009 49.1% 30.1% 3.0% 0.6% 1.8% 0.6% 9.7% 1.2%
2013 58.3% 27.4% 1.5% 1.2% 1.8% 0.9% 7.3% 0.9%
Distribution of educational levels for TEA in South Africa, 2001 -2013
2001
2005
2009
2013
Ave SSA
None
0.0
0.0
13.2
5.1
30.1
Some secondary Secondary degree
45.5
42.5
29.9
33.4
30.6
43.2
44.6
42.5
48.2
23.9
Post secondary
11.3
12.9
14.4
13.3
15.5
Youth findings
67% of the youth agree with this statement
“Where I live working for the government is the best way to earn a good living�.
“Young adults start their own business because they cannot find a job”.
“Young adults that start of the their own youth business agree with have to work these statements too hard for little money”.
61%
TEA
Male
13.1%
Female
8.9%
34% Believe men should earn more than women and that young women are disadvantaged in starting a business due to religious and or cultural beliefs
40% Believe a young woman’s primary responsibility is to start and maintain a family
Policy
Necessity -Driven businesse s
Opportunitydriven businesses
High-growth businesses
Policy
Opportunity -driven businesses
NecessityDriven businesses
High-growth businesses
Policy
NecessityDriven businesses
Opportunitydriven businesses
Highgrowth businesses
Challenges facing South Africa, 2014 • • • • • • • • • • •
Poor quality with respect to primary and secondary education High drop out rate with respect to education Extremely low levels of students taking maths & sciences Poor quality of maths and science education Low levels of potential and intentional entrepreneurs Low levels of conversion from early-stage business to established businesses High business failure rates High levels of corruption & nepotism High levels of crime Credibility in eyes of overseas investors Unemployment & underemployment