Entrepreneurship in South Africa : a comparative study between the Global Entrepreneurship Monitor, the Global Entrepreneurship Index and opinions of industry experts in the entrepreneurship field

Abstract

Economic progress and development has been linked to constructive entrepreneurship; understanding the individual and institutional variables that support entrepreneurial endeavours is thus critical for positive economic development. Measuring these levels of entrepreneurship is a relatively new concept however is ultimately crucial to economic growth. The Global Entrepreneurship Monitor (GEM) and the Global Entrepreneurship Index (GEI) studies are currently the two largest studies of entrepreneurship measurement in the world. This study undertook to identify the validity of these reports in reference to the South African entrepreneurial ecosystem. The GEM and GEI frameworks were deconstructed and compared to one another as well as to expert s opinions in the field of entrepreneurship within South Africa. Thematic analysis of interviews and GEM and GEI results were also contrasted against one another. South African experts in the field of entrepreneurship suggested some measurement indicators used in the reports may be flawed. Emergent themes from interviews demonstrate how certain positive social policies may be destructive economic policies. While entrepreneurship does exist, it may be of a destructive nature / economic consequence, such as rent seeking activities. Neither report discusses productive, destructive or unproductive entrepreneurship and does not attempt to measure it. Ultimately both the GEM and GEI do not show any major structural gaps in framework on a global scale however when used locally they do demonstrate subjective gaps in a South African context