Judi Hudson

Described as "one of the biggest economic phenomena of the last decade", the astonishing speed at which South Africa has become the largest investor in the rest of Africa has eclipsed even the recent surge in interest from non-African investors such as China. Following a gradual increase on the continent after 1994, investment opportunities have taken off in the past five years.

To the casual observer, small businesses are poor stepsisters of large businesses. But small businesses play a vital role in any economy. They provide employment and competition, and a few innovate and grow to businesses of scale and sophistication. Importantly, in a South African context, a vibrant enterprise sector helps reduce the over-concentration of economic power.

Do South Africans have what it takes to become effective entrepreneurs? The 2002 Global Entrepreneurship Monitor (GEM) report reveals that South Africa has below the average rate of entrepreneurial activity compared to the 36 other countries taking part in the survey. South Africa comes last of all developing countries.