JOHANNESBURG, May 5 — South Africa needs more thanr 49,000 small and medium-size enterprises (SMEs) growing at a rate of 20 per cent per annum in order to meet the National Development Plan (NDP) target of creating 11 million jobs by 2030.
In comparison, the country would need no less than 8.2 million small and micro-enterprises to create the same number of jobs, according to the Endeavour jobs calculator, a global tool developed by the International Labour Organization (ILO), National Statistics Agencies and Endeavor Insights, which takes into account the different factors that are essential for job creation.
Endeavor is a global entity which specialises in helping high-impact businesses realise their big dreams, which includes scaling their businesses to become dominant players in local or global markets.
“The Endeavor job calculator can estimate how many entrepreneurs, such as businesses, are required to create new employment opportunities,” its Managing Director South Africa, Catherine Townshend, said here Monday.
“Endeavor believes that by providing much-needed support to scale up businesses by way of helping them think bigger and make more informed decisions, they are able to multiply their success,” she added.
“This in turn has a net positive job-creation impact on the local economy. Based on South Africa’s urgent need to create jobs at a rapid scale, it is clear that the country needs more support for businesses that have the potential to scale and create jobs much quicker than micro-enterprises or start-ups.”
Townshend explained that evidence of maximising the potential of scalable SMEs could be found in the success achieved by Endeavor SA through its network of entrepreneurs.
“Our active portfolio of 22 South African Endeavor entrepreneurs created nearly 5,000 new jobs in 2014 and contributed more than 1.0 billion Rand to the local economy. These successes are replicated in other markets and we are increasingly witnessing a global shift towards providing support for scale-ups.”