1. GLOBAL ENTREPRENEURSHIP MONITOR Funding Fair Wednesday 25 th May 2016

2. GEM in 1997

3. GEM in 2014/15

4. GEM studies individuals, their profile and characteristics such as perceptions, attitudes, aspirations and intentions Fledgling businesses that have not yet started New business start-ups Established business owners What makes GEM Unique?

5. GEM Objectives To measure differences in the levels of entrepreneurial activity between countries To uncover factors leading to the enhancement and hindrance of entrepreneurship To suggest policies that may enhance the national level of entrepreneurship

6. GEM economies by geographic region/economic level, 2015 Factor- driven economies Efficiency-driven economies Innovation-driven economies Africa Botswana, Burkina Faso, Cameroon, Egypt, Senegal, Tunisia Morocco, South Africa Asia & Oceania India, Iran, Philippines, Vietnam China, Indonesia, Kazakhstan, Lebanon, Malaysia, Thailand, Turkey* Australia, Israel, Japan*, Republic of South Korea, Taiwan Latin America & Caribbean Argentina, Barbados, Brazil, Chile, Colombia, Ecuador, Guatemala, Mexico., Panama, Peru, Puerto Rico, Uruguay European Union Bulgaria, Croatia, Estonia, Hungary, Latvia, Poland, Romania, Macedonia Belgium, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom North America Canada, United States

8. Entrepreneurial pipeline, 2015

9. Perceptions of good opportunities & capabilities in the adult population, 2001 - 2015 200120052009201320142015Africa region Efficiency- driven economies Perceive good opportunities 19.727.335.437.837.040.952.141.0 Perceived capabilities 30.435.235.542.737.745.463.653.0 Fear of failure 2625.529.527.225.530.327.233.0

10. Entrepreneurship intentions in South Africa, 2003-2015 YearIntentions % 200312.2 200510.7 200816.9 201019.6 201214.0 201315.4 201411.8 201510.9 Africa region39.3 Efficiency-driven economies26.0

11. Total entrepreneurial activity rates in GEM countries, 2015

12. Entrepreneurial activity in South Africa, 2001 – 2015 200120052009201320142015 Nascent entrepreneurial rate 5.33.6 6.63.95.5 New business ownership rate 1.41.72.54.13.23.8 TEA6.55.25.910.67.09.2 Established business ownership rate -1.31.42.92.73.4 Business discontinuance-2.93.53.9 4.8

13. Opportunity – and necessity-driven entrepreneurship in SA, 2001 - 2015 200120052010201320142015Africa region Necessity-driven (% of TEA) 18.239.536.030.328.233.230.2 Opportunity-driven (% of TEA) 64.757.060.768.671.365.767.7 Ratio (necessity vs opportunity) 0.30.70.60.4 0.50.4

14. TEA by age group in South Africa, 2001 -2015 200120052009201320142015Africa 18 - 24 years 3.43.14.77.84.86.315.0 25 - 34 years 5.36.17.414.19.010.924.0 35 - 44 years 9.17.27.711.57.512.322.6 45 - 54 years 4.34.55.910.97.48.019.9 55 - 64 years 1.95.42.26.04.94.414.5

15. TEA rates by gender in South Africa, 2001 – 2015 200120052009201320142015AfricaEfficiency- driven economies Male TEA rate 7.35.97.212.37.711.622.717.0 Female TEA rate 5.84.54.79.06.37.017.013.0 Ratio female to male 0.790.760.650.730.80.60.750.76

16. Distribution of TEA by sector in South Africa, 2015 South Africa Africa Agriculture 7.213.9 Mining 6.3 Manufacturing 3.69.2 Transportation 5.13.4 Wholesale/ retail 50.450.0 Information/ communication technology 1.01.2 Finance 2.50.9 Professional services 3.12.1 Administrative services 2.52.1 Health, education, government and social services 16.89.5 Personal/ consumer services 1.61.4

17. Recommendations and Policies Government policies Review of regulatory burden Simplify legislative requirements & empowerment framework for small businesses Ease restrictive labour laws Get rid of government cadre deployment Policing of competition laws Education & training Complete overhaul of the education system Address structural problems, i.e. shortages, poor infrastructure Internship, apprenticeships Mentoring & business support More experienced mentors, develop networks etc. Functional nationwide network of walk-in centres Access to finance Tax breaks for funders New funding models Initiatives such as the Western Cape Funding Fair

18. Questions