South Africa’s Inequality Dynamics and Implications for Small Businesses

South Africa’s small businesses low participation in the mainstream economy mirrors the structural inequality disparities. The genesis of this can be traced back in the 19th century land dispossession, the apartheid policy coupled with the Group Areas Act of the 1950’s and the Bantu Education. Inherent in the current education system is the massive production of skillsoriented to job-seeking despite the highly squeezed labour market which calls for job creators and support to enterprise development and cooperatives. The low entrepreneurship level coupled with the rising unemployment imply that South Africa is not keeping pace with the fastest growing population. Conversely, the high mortality rate of start-up in South Africa and the low entrepreneurial intentions stem from a divisive history that was designed to perpetuate dependency, augment inequalities and maintain racial superiority.