Entrepreneurial Ecosystem in South Africa: Pillars, Models, and Solutions

ENTREPRENEURIAL ECO-SYSTEM
IN
SOUTH AFRICA

ENTREPRENEURIAL ECOSYSTEM 2
Table of Contents
1.0 Introduction....................................................................................................................................3
2.0 LITERATURE REVIEW.......................................................................................................................3
2.1 Entrepreneurial Ecosystems: Definitions and Related Concepts...............................................3
2.2 Entrepreneurship Ecosystem Pillars and Models.......................................................................5
2.2.1 Model by Feld......................................................................................................................7
2.2.2 Model by Isenberg..............................................................................................................7
2.2.3 Model by World Economic Forum (WEF)............................................................................7
2.3 Proposal for Entrepreneurial Activity in South Africa................................................................7
2.4 Solution for the South African Entrepreneurial Ecosystem........................................................8
4.0 Concluding Remarks......................................................................................................................10
References............................................................................................................................................11

ENTREPRENEURIAL ECOSYSTEM 3
1.0 Introduction
The number of new firms and independently employed people has expanded significantly
increased in the most recent years. The rate of entrepreneurship has dramatically increased
within 10 years achieving the 10% level in 2012. This can be known as the Entrepreneurship
Miracle. There is no other advancement driven economy that has seen its entrepreneurship
rate developing to this degree over 10 years. This Entrepreneurship Miracle has halfway been
caused by open arrangements, planned and unintended. Entrepreneurship can be seen and
estimated from various perspectives and can have different outcomes. The ascent of
entrepreneurship did not run as an inseparable unit with an expanding ingenuity of the
economy. The rate of (youthful) high-development firms is still rather fair, despite the fact that
this rate has expanded to some degree throughout the most recent years. The goal of this
report is to examine the entrepreneurial ecosystem with a specific end goal to give bits of
knowledge to new approach headings (Dhesi, 2010).
In what manner can the entrepreneurial ecosystem be adjusted to fortify beneficial
entrepreneurship rather than general rates of new companies and independent work? On the
off chance that the development in the number of new companies and independently
employed has not prompted an expansion in advancement, what should be done to accomplish
this? The general message is that development by entrepreneurs requires underway,
dispersion, and utilization. For this, researchers such as Watkins, Meisers, and Visser (2012)
require profound skill and the associations between sets of mastery at an ideal subjective
separation.
This paper will center around the area where government's part is almost overwhelming, in
particular, the national structure conditions. In the event that these national system conditions
are not empowering activities at the neighborhood level, the impacts of nearby activities are
probably going to remain problematic.

ENTREPRENEURIAL ECOSYSTEM 4
2.0 LITERATURE REVIEW
2.1 Entrepreneurial Ecosystems: Definitions and Related Concepts
The entrepreneurial ecosystem is a somewhat late idea, with no mutual definition yet. It
comprises of the segments entrepreneurial and ecosystem (Fillis, 2010). Entrepreneurial alludes
to entrepreneurship. Entrepreneurship is a procedure by which chances to make novel
merchandise and enterprises are found, assessed, and abused. All the more comprehensively
characterized, it is the procedure by which people seek after open doors for development.
Development includes making new an incentive in the public eye. This development can be
arranged towards investigation, i.e. seeking after circumstances that are drastically new, or
towards abuse, refining existing openings. The entrepreneurial ecosystem writing every now
and again limits entrepreneurial firms to high-development entrepreneurial firms, with the
claim that this kind of entrepreneurship is a vital wellspring of advancement, efficiency
development, and work, or to technology-based new businesses. What is clear, in any case, is
that the researcher ought not to stir up factual pointers of entrepreneurship like independent
work (self-employment) and private ventures (small businesses) with the procedure of
entrepreneurship (Satish and Rajesh, 2014).
The second segment is 'ecosystem'. As per Alexandre and Nicolás (2016), an 'ecosystem' is a
natural group of associating life forms and their physical condition. This ought not to be taken
excessively strict with regards to entrepreneurial ecosystems. The entrepreneurial ecosystem
idea underlines that entrepreneurship happens in a group of related on-screen characters.
More, specifically, the entrepreneurial ecosystem writing centers around the part of the (social)
setting in empowering or compelling entrepreneurship, the interdependencies between
performing artists inside the framework. The entrepreneurial ecosystem approach imparts to
more settled ideas like bunches, mechanical areas, advancement frameworks and learning
districts the emphasis on the association's outer conditions for development and business
execution. Be that as it may, it doesn't do as such from the beginning stage of the firm yet puts
the entrepreneur on the inside (Evans, 2011).
According to Robert, Albert, and Ernest (2017), the entrepreneurial ecosystem idea focuses on
how entrepreneurship is empowered by an extensive arrangement of assets and on-screen