The report, which carries out an annual assessment of entrepreneurial activity and the aspirations and difficulties of individuals in the country, is based on the results of the Global Entrepreneurship Monitor (GEM) 2020/2021 Global Report and was presented this Thursday, in Luanda, at the Catholic University of Angola.
The GEM consortium investigates entrepreneurial activity in more than 120 economies and was based, in Angola, on data from a survey of 2000 individuals, aged between 18 and 64, concluding that the number of 'early stage' entrepreneurs in Angola has grown from year to year.
In 2020, the percentage of the angolan adult population that considers itself as such approached 50 percent, the highest of all the economies analyzed.
The intention to start a business is also higher among the angolan population than in any of the other countries analysed, with respondents pointing to two motivations: earning a living due to the scarcity of job offers and making a difference in the world.
However, intentions do not correspond to a high success rate.
On the one hand, the rate of established businesses did not go beyond nine percent, suggesting difficulty in making a business survive beyond the start-up phase (corresponding to the first three and a half years).
On the other hand, the business termination rate was 39 percent in 2020, which, compared to the 'early stage' entrepreneurship rate, allows us to conclude that for every five businesses started in Angola, four do not survive.
The study also concluded that the 'early stage' entrepreneurial activity in the youngest age group, between 18 and 24 years old, was the one that registered the greatest growth in 2020, with a clear increase in 'start ups' and young entrepreneurs in Angola.
"The ecosystem has undergone rapid transformations mainly motivated by two aspects: a young entrepreneurial population with an increasing expression and, associated with this, new business models based on digital and new technologies", points out the report.
Another important data reveals that Angola was the only country that registered, in 2020, a percentage of 'early stage' entrepreneurship among women above 40 percent and in the last year, the rate of female entrepreneurs in this category was higher than that of female entrepreneurs (51 percent and 48 percent, respectively).
In 2020, the year that was marked by the pandemic crisis, the fear of failure, which had been relatively low, was close to the values of 2014 (35 percent and 37 percent, respectively), with an 84 percent increase in risk perception compared to 2018.
The study indicates that the ability of the Angolan population to reinvent entrepreneurship "is currently the structural condition that most facilitates the entrepreneurial impulse, with the transfer of research & development (R&D), education and training and government programs".
The analysis therefore calls attention to the need to adopt policies and programs to support entrepreneurship aimed at specific groups and designed according to their needs, taking into account the scarcity of opportunities for certain social groups, namely women and young people.
The GEM Angola 2020/2021 study resulted from a partnership between the Portuguese Innovation Society, the Center for Studies and Scientific Research of the Catholic University of Angola and Banco de Fomento Angola.