Updated: Sep 22, 2021
Entrepreneurs' Weekly Update – 6 September 2021
Rebuilding the economy through YOUR BUSINESS
Start with the end in mind, this is what keeps you focused and helps you achieve your goals. In the context of the South African economy, the end in mind is the 2030 National Development Plan Goals. The goals which include: eliminating poverty, job creation, and economic transformation have not yet been achieved. The question is how attainable are the goals, to answer this, we need to look at the current economic climate and use it as a test-and-measure to assess how we can achieve poverty eradication, employment creation, and economic transformation.
The unemployment report has recently been published. According to economics analytics reporter; Trading Economics, the "South African unemployment rate rose to 34.4% in the second quarter of 2021 from 32.6% in the previous period". The youth unemployment rate for individuals between the ages of 15-34 for the first quarter of 2021 stood at 46.3% and has increased to 64.40%. The South African GDP contracted in the first quarter by 3.20%. These indicators do not point towards a positive outlook for the economy with regard to achieving the NDP goals.
We talk about entrepreneurship as the solution to unemployment, however as a business owner, what is your opinion.
Is your business the solution to the problem?
The Global Entrepreneurship Monitor, one of the most trusted and credible sources when it comes to entrepreneurship research, reports that the SA business exit rate decreased from 6% in 2017 to 4.9% in 2019. This is still higher than the established business rate of 3.5%. This tells us that more businesses are being closed down, sold, or otherwise discontinued. This comes while we are dealing with unemployment which has been exacerbated by Covid 19. With the pandemic looming in the background and having dented the economy, we need to look at the problem, analyse the businesses themselves, and see whether they hold key to achieving the NDP goals.
I would like to put your business to the test as an entrepreneur, can you look inside your business and see the solution, can your business create employment, alleviate poverty and create economic transformation. If it cannot, you are doing business wrong.
The reports that have come out should not be daunting but rather lead to business owners having introspective moments and finding the solution within their own businesses.
Your business can rebuild the African economy and as your coach, I will help you build your business so you can build your country.
ActionCOACH Thabo Pitse