Entrepreneurship in South Africa : improving access to finance

For a rapidly developing country, South Africa has relatively very low levels of entrepreneurship. This thesis will investigate the reasons for the anemic number of new ventures and, most specifically, tries to address one of the biggest obstacles South African entrepreneurs face: limited access to capital. I have collected data from 47 South African entrepreneurs through questionnaires to survey their level of access to capital, their awareness of the resources that are available to them and to identify which organizations are the most helpful to them in terms of providing educational and financial support. Furthermore, I solicited their opinions on the future of entrepreneurship in their country and tested it against both conventional wisdom and academic hypotheses. I have compared what literature says is happening with what seems to be actually occurring. The findings are that, like many other developed and developing nations, South Africa struggles to provide entrepreneurs with clear paths to capital. Entrepreneurs are also unsure of how to approach venture capitalists and other organizations for funding so education remains a key component to increasing the level of entrepreneurship. There are encouraging signs such as the increase in local organizations aimed at the rural population and women which, studies have shown, are key demographics to eradicate poverty through building new businesses. Several recommendations are outlined, mainly the enhancement of the role of government in fostering the growth of entrepreneurship through programs that are efficient and that attract international investors.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2011

Author dc:creator

• Alexander, Amanda, M.B.A. Massachusetts Institute of Technology

Advisor dc:contributor.advisor

• Matt Marx.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/65776

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/65776