Top sectors for South African entrepreneurs to capitalise on in 2015

business hours200x240A new year brings with it new opportunities and 2015 offers both established and aspiring entrepreneurs multiple business prospects to capitalise on due to the various challenges South Africa has had to overcome in 2014, or continues to battle in 2015.

This is according to Christo Botes, spokesperson for the 2015 Sanlam / Business Partners Entrepreneur of the Year competition, who says that the challenges the country currently faces, such as the weakened rand and poor infrastructure, has provided gaps in various sectors for entrepreneurs to capitalise upon. “While the problems the country has had to face over the last year, from water and power shortages, are negative, these issues also provide opportunities in the market for entrepreneurs to take advantage of.

“Entrepreneurs don’t fit into a structure. They are agile, versatile and quick decision makers. They are the first movers and have the ability to quickly capitalise on new opportunities, or market gaps, and turn a bad situation into a positive outcome,” says Botes.

Botes points to a few sectors that he views as providing significant opportunities for entrepreneurs in 2015:

Education: Both government and the private sector have allocated large budgets to improve this sector. More franchises are increasingly being established, especially technical and vocational education and training (TVET) colleges (formerly known as further education and training (FET) colleges), due to the demand for such facilities and skills in the country. One of the known listed groups in the education and training arena, ADvTECH, recently announced their acquisition of the Maravest Group, and as a result is now expected to grow their student base by 70% in 2015. This business, together with the Curro model, an independent education company that provides affordable private schooling from pre-schools through to tertiary education level, are proving that there is a dire need and still some further niche markets to be serviced in the marketplace.

Manufacturing: While the sector will continue to offer opportunities in 2015, entrepreneurs should be exploring export orientated manufacturing. Government offers attractive incentives, such as rebates and tax deductions, for component manufacturing, as well as an entrepreneur’s ability to develop overseas markets for such products.

As an example, in the automotive industry, vehicle brands, such as Mercedes, Toyota, VW, BMW and Ford, are being exported in greater quantities from South Africa, and this has led to a growing supply chain that can offer new opportunities. Local businesses are also increasing the manufacturing of vehicle components for brands manufactured elsewhere in the world, and thus becoming part of these countries’ supply chains. There are many other industries also offering such opportunities which entrepreneurs can explore.