South Africa has one of the highest gaps between the rich and the poor in the world. Over 10 Million people live below the international poverty line, the majority falling within the Black population. This is exacerbated by a high unemployment rate of 36.3% (8.9 Million people), StatsSA. The Hope Factory plays an active role in transformation through ensuring the sustainability of small black businesses. We build economic hope through personal, financial and business development.
One of the key ways to rectify inequality and poverty issues within South Africa is to address the high unemployment rate. Entrepreneurial Development, with the aim of creating sustainable small businesses, is a solution to addressing some of the country's socio-economic challenges. However, 71% of small businesses in South Africa fail within their first year of operation due to a lack of support and skills.
Statistics show that 70% of businesses that are mentored are more likely to succeed than those without support. The Hope Factory therefore provides entrepreneurs with access to experienced business mentors and financial and industry experts who address key entrepreneurial challenges. A comprehensive business analysis is conducted with each entrepreneur, followed by a personal and business development plan, including goals and tasks that are monitored with the business mentor.
Research has shown that every entrepreneur has the potential to positively impact the lives of seven people within their immediate community. With more individuals starting and succeeding in their own businesses, the South African economy has the potential to grow as it provides opportunities for those who are currently unemployed to become economically active. Creating sustainable small businesses therefore addresses some of the country's greatest socio-economic challenges.