An expert sees this shift significant for people who have previously faced structural barriers to entrepreneurship.
Entrepreneurship plays a significant role in employing South Africans. However, some people have not been able to get the winning formula due to different challenges.
The world is evolving, and so are the trends that will make entrepreneurship successful.
Pat Mokgatle, Partner: Entrepreneurial Business at BDO says the democratisation of entrepreneurship has never been more evident.
“Digital transformation and remote work capabilities have dismantled geographical constraints, allowing aspiring business owners from all backgrounds to participate in the global marketplace.”
He sees this shift as significant for people who have previously faced structural barriers to entrepreneurship.
Five trends creating new opportunities
Digital transformation
Mokgatle says entrepreneurs must take advantage of the accelerated adoption of digital technologies, which has enabled business owners to launch and scale businesses with minimal initial investment.
“Digital tools are now essential for driving innovation and maintaining competitiveness in today’s market.”
He adds that social media has made it easier for local businesses to reach international markets.
“Brands that leverage the social media world very well will continue to benefit from the global market beyond our shores.”
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Remote work revolution
The normalisation of remote work has opened doors for many entrepreneurs to build global teams and access diverse talent pools.
Mokgatle says this flexibility has made entrepreneurship more viable for those balancing business ownership with other responsibilities.
“This new phenomenon post covid has allowed entrepreneurs to release some liquidity in terms of the rental savings from utilising less space as they work remotely, the downside to this is that teams tend to.”
Sustainability focus
He believes environmental consciousness has created new market opportunities, especially for entrepreneurs focused on sustainable solutions.
“This growing sector allows innovative thinkers to address global challenges while building profitable enterprises.”
This opportunity has connected local entrepreneurs to funders who want to back sustainable projects.
He details the importance of positioning and reporting back on the company’s ESG objectives will give an advantage to startups because a lot of small and medium enterprises (SMEs) are under the impression that this kind of work is for bigger corporates.
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Mokgatle adds that there has been an increased focus on brands building communities, and he foresees this trend continuing in 2025.
This can be brands that build communities through running clubs to book clubs.
“Creating a community for your brand ensures that your product has advocacy from day-to-day users.”
“We look at products that get this right and they thrive as they cultivate a community-based model that sees their products or services generate revenue daily.”
SME funding
He says there has been an increase in short-term financing opportunities as SMEs depend on the cash flow.
“The ability to utilise short-term financing without the need to have collateral is a great way to uplift an entrepreneur especially when typically, debtors take between 30 to 45 days to pay.
“This not only starves the business of the oxygen it needs but puts the entrepreneur under immense pressure therefore funding the business in the short term becomes pivotal.”
Mokgatle says the governance and funding readiness of any business will be paramount to unlock the funds available in the market.
“Financial literacy programmes, scalable business support service and expert guidance in navigating regulatory requirements are becoming increasingly available to entrepreneurs from all backgrounds.”
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