“As we join other progressive nations around the globe who have embraced this noble initiative, I am confident that it will immensely benefit South Africa and future generations,” said Lindiwe Zulu, minister of small business development.
The initiative is a collaboration between the Innovation Hub, the Industrial Development Corporation (IDC) and the Wits Business School.
“I have no doubt that the collective wisdom of all partners will empower us to respond appropriately to the many complex socio-economic challenges that confront our nation,” she said.
Zulu also mentioned the concern for the lack of success in small businesses in the country with a majority of the failed small businesses being too black or female owned.
(READ MORE: Entrepreneurship on the decline among S.African women)
“Statistics tell us that small businesses have only 37 per cent chance of surviving four years and only a 9 per cent chance of surviving 10 years. Seventy per cent to 80 per cent of small businesses fail in their first year, and only about half of those which survive remain in business for the next five years,” said Zulu.
Another major issue was the lack of information surrounding SMMEs and co-operatives. The information is imperative in order to effectively execute the plan to create, grow and sustain SMEs.
(READ MORE: SME funding is not government’s responsibility alone: Zulu)
Zulu states that small businesses and co-operatives are important in creating an economy that benefits everyone.
“It is this partnership that holds the key to unlock our country’s economic potential, thus affording us a golden opportunity to launch a sustained onslaught on poverty, unemployment, inequality and underdevelopment.”
South Africa now joins the global network of Startup Nations which include the likes of: Startup Britain, Startup Malaysia, Startup Australia, Startup Brazil and Startup Vietnam – to name a few.