The report of South Africa’s Global Entrepreneurs Monitor (GEM SA) titled Igniting start-ups for economic growth and social change – contains the facts, data and figures that highlight trends in entrepreneurship in South Africa. The result of the report shows the basic principle to be recognized when developing an informed effect aimed at assured economic recovery.
The global pandemic increases the economic challenges of the country. It is generally known that income has been influenced, that advance job losses are likely, and that many small, medium and micro businesses may not survive under these extreme conditions, according to Angus Bowmaker-Falconer, the co-author of the Igniting start-ups for economic growth and social change report.
Most small and medium businesses are owned by local people, and this means that they have to fight in order to stay afloat after one to three month without no or limited commerce and revenue. The early stage business, around 3,5 years, is likely to be destroyed by this current condition.
The report mentioned that it may need several years to build the economic and the social recovery again. During 2008/2009, Global Entrepreneurs Monitor’s research related to the global financial crash showed a big depression in early-stage business activity around the world. Business ecosystem needs more than two years to achieve pre-2007 level after the great financial crash. The improvement curve was determined directly by country-specific economic policy and financial support responses.