The Global Entrepreneurship Monitor (GEM) report for 2013 has been released and having read it, I thought I will summarise some of the highlights of the report (with more emphasis to sub-Saharan Africa economies):
• GEM (Global Entrepreneurship Monitor) study represents over 75% of the world’s population and 90% of world’s total GDP.
• Namibia and South Africa are efficiency-driven economies. Angola, Botswana, Ghana, Malawi, Nigeria, Uganda and Zambia are factor-driven economies.
• Efficiency-driven economies are driven by industrialisation and an increased reliance on economies of scale, with capital-intensive large organisations more dominant.
• Factor-driven economies are dominated by subsistence agriculture and extraction businesses, with a heavy reliance on (unskilled) labour and natural resources.
• Among the factor-driven economies, the sub-Saharan African economies have the highest TEA rates, especially Zambia and Nigeria with 39% of the adult population (18-64 years old) involved in early-stage entrepreneurial activity.
• In the efficiency-driven group, the highest TEA rates were found in the Latin American and Caribbean economies, while lower levels were reported in MENA and Europe.
• Trinidad and Tobago and the United States showed the highest TEA rates among the innovation economies.
• Italy and Japan have the lowest TEA rates in 2013, 3.4% and 3.7% respectively.
• Entrepreneurs do indeed experience higher levels of job satisfaction than employees. Empirical research suggests that this is because they value the independence and lifestyle flexibility of running their own business
• Necessity-driven entrepreneurs have low well-being levels compared to opportunity-driven entrepreneurs
• Sub-Saharan African rates of female early-stage entrepreneurship are comparable to their male equivalents. Notable cases are Ghana, Nigeria and Zambia which exhibit more participation of women than men.
• Early-stage (startups) in innovation-driven economies exhibit highest degrees of well-being
• Individuals in factor-driven economies tend to report more positive attitudes on perceived opportunities to start a business
• Sub-Saharan economies exhibit lower proportions of new product with European economies. Growing emergent economies like Colombia, Chile, Taiwan and South Africa have high rates of new products (over 70%) but also high proportions in new markets (over 50%).
• 69% of individuals in the Sub-Saharan African economies often see good opportunities to start a business in the region
• 47% of individuals in the Sub-Saharan economies also exhibit having intentions to start businesses.
• Only 12.8% of South Africa’s population (18-64 years) have entrepreneurial intentions to start a business within 3 years. Uganda (60.7), Malawi (66.7), Botswana (59.2)
• Only 37.9% of South Africa’s population (18 – 64 years) perceives entrepreneurial opportunities to exist in the country.
• Only 42.7% of people in SA perceive to have entrepreneurial capabilities.
• South Africa’s Total Entrepreneurship Activity (TEA) level is now at 10.6% (2013) from 7.3% in 2012 and 9.1% (2011). Showing improvements.
• However South Africa ranks lower than other African countries in terms of Total Entrepreneurship Activity (TEA).
• TEA rate for other Sub-Saharan African countries are as follows: Zambia (39.9%), Botswana (20.9%), Malawi (28.1%), Angola (22.2), Ghana (25.8), Nigeria (39.9) and Uganda (25.2).
• Sub-Saharan Africa shows the highest regional TEA rates, there are high rates of discontinuance relative to TEA. Angola and Malawi have higher business discontinuation rate than TEA.
• The establishment rate for South Africa is 2,9% and the discontinuance rate is 4.9% which means South Africa’s economy is losing entrepreneurs more than it is establishing them.
• In the Sub-Saharan region, people between 25 & 35 years are the biggest (32%) group engaged in early-stage entrepreneurial activity.
• Primary solutions for improved TEA in the country: Primary education, health, infrastructure, macro-economy stability.
• Secondary solutions: Labour market efficiency, market openness, tech readiness, research and development transfer, cultural & social norms, commercial and professional infrastructure, physical infrastructure, access to finance, government policy and programs.
Below is the link to the full GEM 2013 report: