Why So Many Small Businesses in South Africa Fail – And How to Change That
The lifeblood of South Africa’s economy lies in its entrepreneurs. Small and Medium-sized Enterprises (SMEs) contribute around 34% to GDP and employ approximately 60% of the labour force (Small Enterprise Development Agency – SEDA). Yet, despite their crucial role, many startups struggle to survive beyond the first few years due to limited business acumen, financial limitations, and obstacles to market access.
To bridge this gap, Leverage Leadership’s New Venture Creation Skills Programme provides aspiring business owners with the essential skills and practical tools needed to establish and sustain successful ventures.
The Challenges Facing South Africa’s SMEs
According to the Global Entrepreneurship Monitor (GEM) Report, South Africa ranks among the countries with high entrepreneurial intent but low sustainability rates. Common challenges include:
- Limited Business Knowledge – Many entrepreneurs lack structured training in finance, operations, and strategic planning.
- Access to Capital – Funding constraints make scaling difficult for startups.
- Market Adaptation – Business owners often struggle with market research, customer retention, and competitive positioning.
Without adequate training and mentorship, numerous promising ventures falter before they realise their full potential.
How the New Venture Creation Skills Programme Creates Sustainable Businesses
Leverage Leadership’s programme is designed to transform entrepreneurial ambition into long-term business success. The structured training covers key areas such as:
- Entrepreneurial Mindset Development – Understanding what it takes to think, act, and grow as a business leader.
- Market Analysis & Customer Insights – Identifying market opportunities and building competitive strategies.
- Financial Management & Cash Flow Planning – Practical tools to manage business finances, budgeting, and growth projections.
- Marketing & Sales Strategies – Crafting effective marketing plans and customer engagement techniques.
- Business Planning & Risk Management – Structuring a scalable business model with a roadmap for success.
This skills-based approach helps business owners not only launch their ventures—but sustain them.
Why Skills Development is Critical for South Africa’s Economic Growth
Research from the OECD and World Bank shows that countries with strong entrepreneurship ecosystems experience higher job creation and economic resilience. In South Africa, this means that investing in structured skills development programmes can lead to:
- Increased SME survival rates
- More job opportunities through small business expansion
- Stronger local economies and community development
By equipping entrepreneurs with knowledge, practical skills, and mentorship, the New Venture Creation Skills Programme plays a direct role in building a more sustainable SME sector.
In a country where entrepreneurship is a key driver of economic growth, ensuring that new business owners have the right skills and knowledge is no longer optional—it’s essential.
Leverage Leadership’s New Venture Creation Skills Programme provides a structured pathway to reduce failure rates and build thriving businesses that contribute to South Africa’s economy. Find out more: New Venture Creation Skills Programme
