The Top 7 South African Entrepreneurs
The State of Entrepreneurship in South Africa
The African entrepreneurship landscape is vibrant and growing, with South Africa playing a crucial role in driving economic development and innovation through entrepreneurial activity. Entrepreneurship in South Africa is thriving, with a substantial increase in startups and small businesses over the past decade. Currently, the country has over 2 million micro, small, and medium enterprises, of which 98% are formal businesses, as per UNCTAD. Early-stage entrepreneurial activity in South Africa has seen a notable increase from 10.8% in 2019 to 17.5% in 2021, and the percentage of individuals with entrepreneurial intentions has also grown. This rise was particularly noted by an increase in young people and women engaging in business ventures. Societal perceptions of entrepreneurship have also improved, viewing it as a viable career choice. A combination of governmental policies, private sector initiatives, and educational programs aimed at fostering entrepreneurial skills among the youth are driving entrepreneurship opportunities in South Africa.
However, the state of entrepreneurship in South Africa presents a mixed picture. Despite the widespread explosion of small businesses nationwide, these businesses contribute to less than a third of all formal jobs.
Lower than average entrepreneurial activity rate, a high business discontinuance rate, and limited access to entrepreneurial finance still need to be addressed. A startup's survival rate is low, with over 66% failing in the first five years, as per UNCTAD. A shortage of skills and startup know-how compounds these issues. Addressing these challenges will require enhanced government support, better coordination of programs, and increased private-sector initiatives to foster entrepreneurial growth and success.
Young Entrepreneurs in South Africa
With a young population of nearly 21 million, South Africa is majorly dominated by the youth, as per the African Business Quarterly. These young innovators are the next generation of leaders, scholars, and entrepreneurs who will be crucial in driving the nation's socio-economic development. The Global Entrepreneurship Monitor's (GEM) research also found that these individuals display greater entrepreneurial intentions than adults.
Youth entrepreneurship in South Africa is at the forefront of innovation, leveraging technology and creative solutions to address various societal challenges. These young business leaders contribute to economic growth and inspire a new generation of entrepreneurs.
However, many young people struggle to find employment opportunities that allow them to optimize their full potential. These young individuals could become the employers of the next generation of youth, but they need the right skills to flourish. Educational institutions and entrepreneurship labs nationwide must play a pivotal role in nurturing this talent to think like entrepreneurs, providing them with the necessary resources and mentorship to help them establish their own ventures.
Top South African Entrepreneurs
Here, we highlight some of the most successful and well-known South African entrepreneurs, detailing their journeys, achievements, and impact on the business landscape.
Patrice Motsepe
One of Africa's most successful entrepreneurs, Patrice Motsepe, found his passions while being exposed to mining through the mineworkers who frequented his father's restaurant and liquor hall. He also picked up essential business management skills. Motsepe attended a Roman Catholic boarding school and earned degrees in law from the University of Swaziland and the University of the Witwatersrand. In 1993, he became the first black partner at Bowman Gilfillan, specializing in mining and business law.
In 1994, he founded Future Mining, a company focused on rehabilitating unprofitable mining shafts. He leveraged his knowledge of mining and its workers, his network built at school, his insights into political and legal concepts, and his entrepreneurial thinking to build the business.
His big break came in 1997 when he bought marginal gold mines from AngloGold and transformed them into profitable ventures. ARM was listed on the Johannesburg Stock Exchange in 2002, merged with Harmony Gold and Anglovaal Mining's unproductive mines in 2003, and was renamed African Rainbow Minerals (ARM).
Motsepe's investment vehicle, Ubuntu-Botho Investments (UBI), acquired a significant stake in Sanlam in 2004, creating one of the top empowerment deals in South Africa. He also launched African Rainbow Capital (ARC) in 2016, investing in companies like Rain and Tyme Bank.
As a philanthropist, Motsepe was the first African to sign the Bill Gates and Warren Buffett Giving Pledge in 2013, committing to donate half his wealth to charity. The Motsepe Foundation, founded in 1999, addresses poverty and unemployment in South Africa. In March 2021, Motsepe was elected President of the Confederation of African Football (CAF).
Vusi Thembekwayo
Vusi Thembekwayo is a renowned South African serial entrepreneur, venture capitalist, and global business speaker. At 21, Vusi built and ran South Africa's only black-owned Forensic Marketing agency. By the time he was 25, he was heading a R400 million division at a multinational company and was a director of a listed South African company. Today, in addition to holding positions on multiple boards, he is the founder and CEO of MyGrowthFund Venture Partners, which invests in and mentors high-growth startups, fostering a new generation of African entrepreneurs.
As a global speaker, Thembekwayo shares insights on leadership, innovation, and entrepreneurship, drawing from his business experiences. He aims to disrupt how individuals, teams, and companies think and build value. He is deeply committed to youth development in Africa, supporting educational and mentorship initiatives through his foundation.
Vusi is also a best-selling author who offers practical strategies for success in his books. His impactful contributions to business and society continue to inspire and empower aspiring entrepreneurs across Africa. Vusi Thembekwayo's impressive track record of collaborating with C-Suite executives and entrepreneurs has led to numerous invitations to share his expertise through 180 presentations across four continents and 38 countries since 2015.
As a trusted advisor to Fortune 500 companies and blue-chip corporations worldwide, Vusi has become one of Africa's wealthiest young individuals. He was the youngest African entrepreneur to appear on the cover of Entrepreneur Magazine and has also been featured on CNBC, Bloomberg, and Inc500.
Ryan Bacher
Bacher was a sales manager at NetActive, an Internet service provider, when he and his two partners, Lawrence Brick and Jonathan Hackner, were given the opportunity to build an online store for Makro, South Africa's wholesale giant. The initial plan was to run a online flower shop site for a single test to prove its capability.
On February 14th, 1999, they unexpectedly received approximately $1800 (R30 000) worth of orders in one day, equivalent to a month's revenue at a typical flower shop.
Since the "test" site performed exceptionally well on Valentine's Day, the three partners operated the 'NetFlorist' website. "What's really crazy is that people were paying for us to provide a service. We had no stock and knew nothing about flowers. We just sent the orders to a flower shop in Sandton," says Ryan Bacher.
By 2007, the business had grown large enough to invest in its own warehouses and delivery vehicles. The business owners also expanded the venture to confectioneries, gifts, and jewelry while successfully fulfilling same-day delivery. NetFlorist has now become one of South Africa's leading online retailers.
Sibongile Sambo
Sibongile Sambo founded SRS Aviation, the first black female-owned aviation company in South Africa. Her aviation journey began after being rejected for a flight attendant position due to height requirements. Undeterred, Sibongile pursued her passion by establishing SRS Aviation. The company offers various services, including private charters, tourist flights, and cargo transport, catering to domestic and international clients.
Sibongile's impact on the aviation industry is profound. She has overcome significant obstacles, including securing funding in a capital-intensive field and entering a traditionally male-dominated industry. Her success is a beacon of inspiration for women who aspire to enter the aviation sector or other challenging fields. Through her leadership and perseverance, Sibongile has paved the way for greater diversity and inclusion in aviation, encouraging women to pursue their dreams and achieve excellence.
Arlene Mulder
Arlene Mulder is a prominent South African entrepreneur and co-founder of WeThinkCode_, a nonprofit organization dedicated to training Africa's next generation of software engineers. WeThinkCode_ aims to develop critical coding skills among young Africans by offering a tuition-free two-year course and securing internships with leading tech companies for its students.
Since its inception in 2015, WeThinkCode_ has trained over 1,000 students, with an impressive 91% employment rate for graduates. The organization has partnerships with major companies that provide financial support and internship opportunities. Arlene's vision for WeThinkCode_ stemmed from her background in investment banking and her passion for technology and education. Recognizing the skills gap in Africa's tech industry, she sought to create a platform to empower young people with the tools needed to succeed in the digital economy.
Under Arlene's leadership, WeThinkCode_ has received numerous accolades, including being named one of the top coding academies in Africa. Her efforts have significantly contributed to bridging the digital divide and fostering innovation on the continent. Arlene was also awarded the Forbes Woman Africa Technology and Innovation Award in 2019, signifying her influence and impact in the industry.
Mahlatse Mamaila
During the COVID-19 lockdown, Mahlatse Mamaila realized that a third of farmers in Gauteng province in South Africa found it challenging to source clean fuel for harvesting and delivering crops. She realized that waste cooking oil could be used to meet the demand for fuel by using the oil to produce biodiesel. To realize her vision, she pivoted from her former position as a financial advisor by building a venture in the renewable energy sector. In 2020, she learned how to source, process, and convert used cooking oil into biodiesel, and she launched 'Ino Biodiesel.'
Manaila's company would be a key player in global decarbonizing efforts to tackle climate change by producing biodiesel. With rising fuel prices, biodiesel is also an affordable alternative for consumers. The company can convert 100 liters of cooking oil into 80 liters of biodiesel and has achieved a monthly production capacity of 40,000 liters of biodiesel. The product is in high demand, with primary consumers in construction and mining.
Mamaila also works with women to help them grow agricultural produce that can be used during shortages or turned into oil. She also supports schools and medical clinics during load-shedding phases by providing power through biodiesel.
Aisha Pandor
Two years after working as a consultant, Aisha Pandor decided to take a leap of faith and start her entrepreneurial journey. Pandor and her husband founded SweepSouth in 2014, a platform that connected homeowners with skilled domestic workers, offering a reliable service for home cleaning. The platform allows booking, management, and payment to domestic cleaners.
Aisha is among a handful of black female tech founders in South Africa and internationally. Under her leadership, the company is one of the fastest-growing tech startups in the country, and it received an R30 million investment in 2019 from Naspers Foundry. The company currently operates across 4 South African cities. The startup was also the first South African business to be accepted into the well-known ‘500 Startups' accelerator based in Silicon Valley in San Francisco.
Through her venture, Aisha creates better opportunities for underemployed and unemployed laborers by creating thousands of jobs for women. Fifty thousand previously unemployed/underemployed workers have gained employment through her venture.
Aisha's work has helped her gain recognition nationally. She has been awarded several titles in the past decade. The Mail and Guardian's Top 200 Young South Africans in 2012, Forbes Africa recognized her as a top African millennial in 2016, and she was also awarded the Price Check Female Entrepreneur of the Year.
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