The country lags on start-up funding.
South Africa has strong start-up and taxation compliance procedures and, in terms of tax and regulation, it compares well with both mature and rapid-growth G20 economies, according to the EY G20 Entrepreneurship Barometer for 2013.
But, there are many common challenges for entrepreneurs and governments across the G20, with access to funding cited as the top priority for global action by 70% of entrepreneurs, while 79% of South African entrepreneurs say that they have difficulty accessing funding.
The cost of firing workers is also a notable detractor and highlights the ongoing need for labour-law reform in the country, EY said.
Of the 144 countries tracked by the World Economic Forum South Africa is 143rd on hiring and firing practices, 140th on flexibility of wage determination and last on the measure of co-operation in labour-employer relations.. .