THE AFRICAN ENTERPRENEURSHIP EXPERIENCE PART 2

The above discussion established that South Africa has a very low enterprise density. Only 2 per cent of the South African population are entrepreneurs as compared to an average of 10 per cent elsewhere in the world (Ntsika, 1997). In comparison with a selected sample of the developing economies particularly that of three neighbouring states of Southern Africa, namely Lesotho, Swaziland and Zimbabwe have on average a higher enterprise density than South Africa.

The low number of enterprises in South Africa can be attributed to the previous policies that were not in favour of individual initiatives in business, but were more inclined to favour large corporations and big businesses. This can also be attributed to the policies of apartheid, which restricted non-whites from owning and operating businesses in designated urban areas. The low number of enterprises does not augur well for solving the current nagging problem of unemployment, especially in the black communities, both in the urban and rural areas of South Africa.

However, culture is a missing concept in the theory of entrepreneurship and economic development. Moreover, it has led wittingly or unwittingly to a tendency that has come to be known as the ''Eurocentric or paternalistic approach to development''. This is true where there has been a historical incident of colonialism as is the case in South Africa, and Africa where the previous colonial governments created a black underclass, which was robbed of role models from which the young generation could be inheriting entrepreneurial skills.

It is therefore concluded that the SMMEs sector could play a vital role in the economy by creating the much-needed jobs, and thus help in the alleviation of poverty and in facilitating the distribution of income. As Smuts stated above: "There should be no restrictions relating to the provision of resources and know-how; in particular, there should be no distortions and imperfections in the market for capital, (skilled) labour, and essential facilities such as transport, utilities and business premises.''