Endeavor South Africa did not disappoint in the event this morning here in Johannesburg.  The State of Entrepreneurship Summit brought together leaders in the fields of education, government and big and small business, to discuss accessing capital, incubator support of start-ups, and the overall culture of entrepreneurship and access to the tools and skills needed for success. These conversations focused on what is working and what can be improved.

The right people were assembled to talk about future potential for entrepreneurship in South Africa and it was an honor to be able to address the group.  From humble rock star entrepreneurs like Adrian Gore to government leaders like Charles Wyeth from the Department of Trade and Industry, this morning’s Global Entrepreneurship Week Endeavor event offered an all star line up.  What inspired me most at the outset was hearing once more from the very successful entrepreneurs that at the end of the day, having a noble purpose had been central to their success.

The story was quite clear.  Despite banking really being the only source of funding for entrepreneurs, South Africa is ripe for entrepreneurial growth.  While some of the entrepreneurs quipped about only becoming an entrepreneur because they were unemployable, their advise was sound emphasizing the need for disruptive but disciplined entrepreneurial ideas and behavior, and calling on budding entrepreneurs in the audience to examine their local environment, break out of their comfort zone and focus on what they can do that is different.  The entrepreneurs suggested that complaints about lack of capital should not slow entrepreneurial progress suggesting that their “capital” at the outset is their network, their friends and their knowledge.  Only someone from a township, one panelist suggested, would know that putting boards on bicycles was an effective way to market to black South Africans. And they offered an old African proverb as counsel.  “If you want to travel fast go alone but if you want to arrive at your destination take other people with you.”

There was much discussion about the unique opportunities before South Africa.  For example, is South Africa taking advantage of the fact that migrant movement into the country from places such as Algeria has the potential to take entrepreneurship to a different level?  There was also a healthy discussion around the role of government.  At least one audience member brought up how government if not careful can create an entitlement expectation among South Africans.  As my taxi driver confirmed, the Townships made entrepreneurship a necessity and care should be taken to not lose what has become as asset among so many South Africans – they are innate entrepreneurs.  It was noted that while DTI offers millions of rand in incentives, caution should be taken not to make it too easy for government to get in the business of doing the entrepreneurs job.  “Part of being an entrepreneur has to be the ingenuity of figuring out how to overcome barriers such as delayed resources” suggested on participant.

The World Bank Doing Business rankings warns that South Africa might need further reform to improve its business environment relative to other countries. In various criteria, such as the ease of starting a business and enforcing contracts, the country slipped down the list of 183 economies. But a recent Gallup poll h revealed that 28% of South Africans were planning to start a business in the next 12 months.   New Gallup results suggest that South Africans continue to be optimistic about entrepreneurship in the midst of their first economic recession in 17 years. Eighty percent of respondents in a March-April 2009 survey said that their city or region is a good place for entrepreneurs forming a new business. The proportion of respondents who say the government makes paperwork and permits easy enough for anyone who wants to start a business more than doubled between 2006 and 2009, from 22 percent to 51 percent. Moreover, 46 percent said they trust their property and assets to be protected at all times, up from 39 percent in 2006.
I am bullish on South Africa’s potential to grow its base of growth entrepreneurs.  We should stay tuned.

See you in Singapore tomorrow.

Jonathan Ortmans is the President of Global Entrepreneurship Week and is based in Washington DC