The dynamics of digital entrepreneurship ecosystem in South Africa

Abstract

South Africa values entrepreneurship as a key to economic growth and poverty alleviation. The rapid growth in digital technologies has led to new digitally enabled entrepreneurial opportunities. However, these digital entrepreneurial ventures do not grow in silos; they are part on an interconnected system that influences their formation and development, a digital entrepreneurship ecosystem. This study explores the dynamics of the digital entrepreneurship ecosystem (DEE) in South Africa, with an objective of exploring the micro- and macro-level factors that influence the DEE in South Africa and how these enable or hinder the DEE in South Africa. This exploratory study adopted a qualitative approach as a method with purposive sampling. Semistructured interviews were conducted, relevant documentation collected and reviewed. The findings revealed that at a micro-level, the availability of digital skills, entrepreneurs with leadership skills, a passion for entrepreneurship, and an entrepreneurial mindset are essentials for the success of DEE and the digital entrepreneurs in South Africa do possess the relevant skill. At a macro-level, while a few factors emerged, the findings suggest the government is the most critical factor for South African DEE to see success. It was evident that government needs to play a leading role, collaborate with the private sector to make available the required support in enabling the DEE to thrive. While the government continues to make resources available in this regard, a gap seems to exist in implementation i.e., in the way that these resources are allocated. Both the micro and macro-level factors influence the DEE.