Talk:Thousand Rand Challenge

From Startup

The Thousand Rand Challenge is interesting. I would like to know what formal research is being done into what makes these businesses successful, what percentage are successful, what the breakdown is between micro and SME's after a year and after 3 years, and how sustainable are these businesses.

Hallberg of the IFC says SME's generally are not labour intensive, do not contribute to job growth in a country until the startup rate exceeds the failure rate, and that only SME's that keep growing generate real job growth.

Personally I see the bulk of micro business creation as more of a poverty alleviation programme with micro business as the vehicle. However most developing countries need this and for SME's to be grown into medium and large businesses.

Rob Smorfitt http://main-spring.blogspot.com http://www.mainspring.co.za