Running a business in South Africa has become increasingly difficult. The challenges range from the economic after-effects of the COVID-19 pandemic to limited access to finance, increased global competition, shifting trade relations, technological change and governance issues.
As researchers with an interest in urban economies, we set out to understand the biggest challenges facing businesses wanting to grow in South Africa’s Western Cape province. The study involved surveying 426 businesses to draw on the views of employers directly.
Our findings show that their biggest constraints were shortages in digital, soft, and environmental sustainability skills. The gaps were the result of weaknesses in education and vocational training.
These findings align with problems in the broader South African labour market, like poor schooling, limited practical skills and a mismatch between what people learn and what employers actually need.
Skills shortages affect not only job seekers but also business productivity, growth and competitiveness.
