Skip to main content

What you need to know about starting your own company in South Africa

| Research tools

A new startup survey, which claims to be the largest of its kind in South Africa, reveals interesting insights into the business environment in the country.

The survey, conducted by Seed Academy, gauged the views of almost 1,500 startup entrepreneurs.

Nearly half of the entrepreneurs surveyed said creating a business out of an idea that came to them from the environment in which they live, work and play was their main motivating factor.

Worryingly, a large portion of the countries entrepreneurs have no employees.

The survey revealed that entrepreneurs are taking long periods to gain traction. It also found that business survival rates are on the increase.

The majority of entrepreneurs reported starting businesses in the Information Technology (22%), Creative (12%), Wholesale and Retail (9%) or Social and Community Services (9%) sectors. Mining and Automotive were amongst the least popular sectors for aspiring entrepreneurs.

Business owners that have been in existence for more than 2.5 years reported having more than 10 years prior work experience.

Seed Academy recommended that entrepreneurs starting a new business may wish to do so in parallel with full time employment.

The company provided an infographic on the state of startups in South Africa:

StartupGraphic

Pin It

Related Articles

By: Staff Reporter - IOL Cash is king, credit is hard to come by and side hustles often bring in more than 9-to-5 jobs. That’s life for many young South Africans. But Gen Zs are not sitting back waiting for a break. They’re making a plan and figuri…
By 2030, Gen Z will be the biggest-spending generation in much of Sub-Saharan Africa, and already, South Africa's youngest consumers are changing the way the country pays.
Checkers has taken the lead in South Africa’s fast-growing on-demand grocery delivery market, outpacing rival Pick n Pay’s asap! service.
By: Trade Intelligence New data from Trade Intelligence reveals key shifts in South Africa’s FMCG retail landscape, with Discounter and E-commerce formats outperforming other channels in 2024.
By: Siphelele Dludla – IOL Business South African small businesses are continuing to display resilience, demonstrating remarkable resilience and optimism for the future in the face of political and economic uncertainty.