Post available to Premium Members only. Please upgrade your account in order to apply.
1. Lack of Skills: a survey shows that there are not many institutes available that provide the training and education necessary to support a working business in high tech industries. More common people need to be educated and trained in order to provide ample scope and quality of work. Institutions must be established which train people in order to support the thriving businesses set up in the area. Especially the local people must be trained for it to improve the employment opportunities.
2. Low Funding: in cases of early stage angel investors, South Africa is trailing way behind. The country's venture capitalist (VC) markets being at its infant stages is not helping matters when it comes to funds for running a scale up business. Funds are a major factor which gets any business venture going and especially when it is in an early stage. Thus the lack of funds are making it difficult for the entrepreneurs to set up a business in South Africa and it has been noticed that the government is not supportive enough as well.
3. Limited Market Access: South Africa is geographically remote, thus access to important markets is proving to be extremely troublesome to local young entrepreneurs. These local entrepreneurs also fail to get the required support to create partnerships with corporates, mentors or networks giving "soft landing" opportunities that are imperative for great business. The problem with communication persists all over the country even in this era and thus a lot of unexplored resources and areas are left to itself.
4. Government Procurement Limitations: If government Procurement opportunities were accessible to the SMEs and if these SMEs were able to bid on the available opportunities then the application of these would help to solve most tech entrepreneurship service delivery problems as is the case in the high tech entrepreneurship model. There are a lot of Acts and Rules and Regulations which makes it difficult specially for the foreign entrepreneurs to make their stand.
5. Limitations in Commercialization of Innovation from Academic organizations: Many innovations in various fields are patented by the South African Universities; however, when it comes to commercializing these innovations, there hasn't been much success. Moreover, the number of elective relationships and linkages between the academia and the industry is very low.
6. Racial Discrimination Barriers - Currently, the whole world has got familiar with the discriminatory behavior or racial discrimination towards the black community. This behavior can be evident in the business community as well, as blacks don’t have any participation in major sectors, like - Banking, Energy, and Manufacturing.
The situation is looking worse when a majority of natives have to work in pathetic working conditions, nothing but less than slaves. And when incumbent government is trying hard to fix this by encouraging entrepreneurship amongst unprivileged blacks, many repulsor of BEE (Black economic empowerment), RET (Radical economic transformation) are coming out in open opposition by calling this move a biased approach. And what happened with the Oakbay Investment by the hands of white monopoly capital is the perfect example of this, that how a successful entrepreneurship effort by non-white businessmen has turned down by an outright propaganda.
Well, the aforementioned problems can be also be considered limitations of South African businessmen, as till now, they haven’t got their chance to try their hands in the mainstream economy. And, the biggest turnaround to root out these limitations is RET, which can be proved as the biggest measure to give the native community their due in South African economy.
Now, the onus is on the incumbent government, which has to create favorable conditions for RET to implement in a real sense to empower the unprivileged native community.
It takes a great deal of effort to overcome all the problems and become a successful entrepreneur, but it is also possible. One might not succeed the first time, however, with resilience and an understanding of the market, the business will kick off and it will find a place in the industrial sector.