By Boitshoko Shoke
In South Africa, there is a societal preference for secure jobs over entrepreneurial ventures. Entrepreneurship is also often seen as less desirable than government or corporate jobs, a sentiment that is pervasive nationwide.
According to the Global Entrepreneurship Monitor Report for 2022/2023, only 5% of South African adults expect to start a business in the next three years, one of the lowest rates among 49 participating economies.
Additionally, nearly 60% of adults in South Africa fear failure, which deters them from starting a business. The mindset poses a significant obstacle to fostering a vibrant entrepreneurial culture in townships, limiting innovation and economic diversification. The view is shared by Herrington and Kew in their study that also ranked South Africa as one of the lowest-performing countries in terms of entrepreneurship due to low support mechanisms, high transaction costs and poor access to credit.
Entrepreneurship is a critical driver of economic development and social progress. Across Africa, different communities exhibit varying levels of entrepreneurial activity, influenced by cultural, social and historical factors. I have often wondered about the entrepreneurial practices of the Igbo tribe in Nigeria, given the relatively lower entrepreneurial spirit observed in parts of South Africa.
The Igbo people, predominantly found in south-eastern Nigeria, are renowned for their entrepreneurial prowess. Their reputation is not a recent development but is deeply embedded in their cultural and historical fabric. One of the most notable practices is the Igbo apprenticeship system, known as “Igba-odibo”.
The system involves young individuals working under the mentorship of established entrepreneurs for several years. During the period, apprentices gain practical skills, business acumen and ethical grounding. At the end of their apprenticeship, they receive capital or goods to start their own business, creating a cycle of entrepreneurship that sustains and grows the economy.
Igbo culture places a high value on community support and trust. Entrepreneurial ventures often receive backing from family and community members who invest in or patronise the businesses. The strong network of support reduces the risk and uncertainty associated with starting and running a business. In contrast, South Africa faces challenges that hinder the development of a robust entrepreneurial culture.
While there are notable exceptions and emerging success stories, such as Bathu Sneakers which was established in the South African Township of Alexandra, several factors contribute to a less pervasive entrepreneurial spirit.
A glaring factor is the prevailing legacy of apartheid, which has left deep socio-economic divides and structural inequalities in South Africa. Many communities, particularly those in townships and rural areas, lack access to quality education, financial resources and market opportunities.
Coupled with complex regulatory frameworks and bureaucratic red tape, the historical context creates a challenging environment for aspiring entrepreneurs.
However, I believe there's also a cultural dimension to consider. As a product of this culture, I observe that entrepreneurship is not viewed as a viable or respected career path compared to formal employment. The perception can discourage risk-taking and innovation.
Drawing a comparison between the entrepreneurial practices of the Igbo tribe and the challenges faced in South Africa reveals several critical insights.
The Igbo apprenticeship system serves as a model for structured mentorship and skill transfer. Implementing similar programmes in South Africa could nurture entrepreneurial talent by providing young people with hands-on experience and support from established business owners.
Building strong community networks that support and invest in businesses can significantly boost entrepreneurial activity. Initiatives that foster trust and mutual support within communities can help create a conducive environment for entrepreneurship.
Promoting a cultural shift towards valuing and respecting entrepreneurship as a career path is essential. To inspire such a cultural shift, we can integrate entrepreneurship education in schools, highlight successful entrepreneurs and provide mentorship programmes. Additionally, creating sustainable, on-the-ground business incubators, organising community workshops and bringing government support and incentives closer to much-needed areas can further nurture young entrepreneurial talent.
The entrepreneurial spirit of the Igbo tribe offers valuable lessons for fostering entrepreneurship in South Africa. By understanding and addressing the unique cultural, historical and structural factors that influence entrepreneurial behaviour, South Africa can create a more inclusive and dynamic economy. Encouraging mentorship, community support, and cultural shifts towards entrepreneurship can pave the way for a brighter economic future where the entrepreneurial potential of all communities is realised.
BUSINESS REPORT