from DION HENRICK in Cape Town
CAPE TOWN, (CAJ News) – AMID calls for labour laws to be made more flexible to help aid the growth of small businesses, start-ups have emerged as the biggest job creating opportunity in South Africa.
This is a boost to the continent’s most advanced economy but whose country is going through its worst unemployment crisis, partly blamed on the coronavirus pandemic.
Headcount growth within South African start-ups has grown by 20 percent in the past 12-months, with more predicted as 50 percent of South Africa’s most-experienced professionals plan to make their next move to a start-up.
The survey findings, from recruiter Robert Walters, follow a ‘record-breaking’ year for African start-ups raising.
These raised over US$4 billion, with South Africa and Nigeria leading the way.
“After any period of economic change, we typically see a wave of entrepreneurial or start-up activity. So, it doesn’t surprise me to hear of the success of these businesses,” said Megan Prosser, Senior Manager, Robert Walters South Africa.
“Combine this with the support from the Future of Africa programme and we have a prime hotbed for fast-growth companies in emerging industries,” the official added.
Future of Africa is an accelerator for start-ups helping young people find jobs.
Interestingly, these relatively new 10-30 person companies are managing to draw some of the region’s top talent away from established firms who typically offer much higher levels of job security.
“Post pandemic we have seen a seismic shift in what professionals want from their employer – with purpose, culture, and people, rated above competitive pay and the well mapped-out corporate ladder,” Prosser said.
Small businesses in the region currently represent over 60 percent of new job vacancies.
The World Bank has rated highly startups job creation prospects.
– CAJ News