AFTER a month of deliberation, the judges of the Business Partners Entrepreneur of the Year competition selected 16 finalists as the country’s most promising and resilient emerging, small, and medium businesses.
This year marks the post-Covid return of the competition, which is aimed at celebrating and showcasing the accomplishments of South African entrepreneurs and SMEs who are setting new benchmarks within their industries; often despite all odds.
Commenting on this year’s cohort of finalists is competition spokesperson and executive general manager for impact investing at Business Partners, David Morobe, who says: “This year’s finalists have proven their mettle in the face of a harrowing economic environment. Each of the businesses selected by the judging panel was chosen for their inherent resilience as well as their ability to serve as entrepreneurial role models for South Africans and aspiring businesspeople.”
Moving forward despite the uphill climb
South Africa currently has one of the highest start-up failure rates in the world, with 70% – 80% of small businesses failing within the first five years of operation. The pandemic catalysed an era of hardship for millions of SMEs across the country, with lockdown regulations interrupting ‘business as usual’ and compelling many entrepreneurs to change direction in order to keep their doors open.
And while South Africa presses on towards post-pandemic recovery, the past few years have presented their fair share of headwinds for both new and existing ventures. Civil unrest, adverse weather conditions, infrastructural failings and the ongoing energy crisis have all played out locally amidst the turbulence of geopolitical uncertainties abroad.
The recent SME Index conducted by Business Partners revealed that the major challenges facing small businesses are cashflow, unfavourable economic conditions and lack of access to funding. These factors are among the most significant contributors to the erosion of business confidence as well as several other key metrics.
According to the 2022 Global Entrepreneurship Monitor, total early-stage entrepreneurial activity in South Africa decreased by roughly half when compared to 2021. Likewise, fear of failure among small business owners increased to 59% from where it was at 53% the previous year.
Of encouragement is the fact that the percentage of South Africans who have identified promising opportunities for starting a business increased to 61%, compared to 58% in 2021. Morobe says: “Contests like the Entrepreneur of the Year competition play a vital role in honouring the pioneers and innovators who find creative ways to thrive, even in the most trying circumstances.
What we hope to achieve through this competition therefore goes beyond the recognition of achievement – it’s about so much more. It’s about promoting entrepreneurship as a rewarding career path and in doing so, to build a nation of entrepreneurial thinkers who can tackle some of the country’s most pressing issues such as poverty and unemployment.”
Business Partners announced KwaZulu-Natal’s KCM Environmental Services, headed up by Kevin Munsamy as a finalist in the small business category. Finalists stand a chance of winning prizes valued at R2 million, including cash prizes of over R500 000 coupled with ongoing mentorship support.
