NEWS RELEASE                                                                                                    23 May 2001

CITY OF CAPE TOWN COUNCIL PAYS TRIBUTE TO ENTREPRENEURS

Small and micro business is playing a huge part in the Cape Town economy and young people should look to entrepreneurship to get ahead in life.

This is the Entrepreneurs Day message from the City of Cape Town Council’s Executive Committee member responsible for Economic Development, Tourism and Property, Councillor Kent Morkel.

He referred to a recent survey by the Council on Economic Trends and Future Prospects for the city in which it emerged that some 90 per cent of Cape Town firms are micro or small formal businesses that contribute 50 per cent of total output.

“There is no doubt that there are fewer formal jobs these days and that the youth should be trained to look forward to becoming entrepreneurs with their own businesses,” Councillor Morkel said. “The labour force grew from 1,3 million in 1999 to 1,5 million in 2000 and a large percentage of this year’s matriculants will not find jobs in the formal sector.”

The survey revealed that 48 per cent of annual turnover in Cape Town comes from micro and small business that make up 40 per cent of employment.

Growth areas for entrepreneurs are tourism, education and training, information and communications technology, health, medical services and equipment, the film industry and media.

“Our survey has found that future prospects for growth in Cape Town are excellent - and certainly better than elsewhere in the country,” said Councillor Morkel. “Many business opportunities are waiting for those who are trained in entrepreneurial skills.”

He said net new business registrations (registrations less liquidations) increased by 33 per cent between 1999 and 2000. Most of these were in finance, real estate, trade, catering and construction.

“This goes to show that small business development and the entrepreneurial spirit are booming in Cape Town. Today we salute the entrepreneurs for their great contribution to our economy,” he said.

To give assistance to small businesses, the City of Cape Town Council will be hosting Small Business Week. The aim is to give practical advice to small business people and receive feedback from them on how the Council can best help them to grow.

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