Although South Africa has one of the highest gross domestic product per capita in Sub-Saharan Africa, it remains the most unequal country in the world in terms of income distribution. The country’s high unemployment rate, which has increased materially in the last decade and is particularly high among previously disadvantaged communities and youth (who are predominantly black) contributes to this inequality.
Senior government officials in South Africa have repeatedly stressed that small business is a catalyst to unlocking economic growth and creating jobs. Recent estimates show that SMME’s employ between 50 and 60 percent of South Africa’s work force and contribute a whopping 34 percent of GDP. Small business however has been relatively stagnant as approximately only 14% of these are formalized, capping their job creation and economic contribution potential.
While reasonably substantial in terms of size, South Africa’s rate of established entrepreneurship is extremely low compared to other African countries.
The Most Unequal Country In The World: Getting to the Root of the Problem
The Most Unequal Country In The World: Low Manufacturing Sector Growth Rate
The Most Unequal Country In The World: Limited Funding Options For SMMEs
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