GEM Angola 2010 – Global Entrepreneurship Monitor

Method: A total of 2000 adults and 32 experts for business and start-ups were interviewed for the survey.

Survey of entrepreneurs:

• 2.3 Million entrepreneurs in Angola recently started their business.
• Thus, 32% of all adults in Angola (between 18 and 64 years old) own a business. This is the 5th highest figure worldwide.
• Most start-up entrepreneurs are between 35 and 44 years old.
• 33% of all entrepreneurs are male, 31% female. Back in 2008, female entrepreneurs represented a 5% higher share than male entrepreneurs.
• Most start-ups (42%) are being started because of economic necessity. Other reasons for commencing a business are: Increase of income (17%) or a mix of reasons (27%). Only 14% start their business to become independent.
• As a general rule, countries with a relatively low GDP show relatively high figures of business start-ups. Vice versa, relatively few persons start a business in countries with a higher GDP.
• 79% of all start-ups sell consumer goods, only 13% deal with the processing and manufacturing of goods.
• Most new companies in Angola sell for the national market: 63% have no international clients at all. Only 6% of all start-ups offer their products mainly (to more than 75%) to international clients.
• Most start-up companies do not use new technologies and innovation. 68% of all interviewed persons state that they do not use technologies younger than 5 years old.
• 50% of all new businesses fail due to lack of economic success or lack of access to external finances.

Survey of experts regarding the general conditions for business start-ups:

• All the success factors, considered worldwide as important for commencing a business, are rated in a relatively negative way by the experts. However, not only negative observations were stated:
  • Financial assistance (positive: Capital for new businesses is available, negative: access to credit is difficult)
  • Political conditions (positive: The tax system in Angola is predictable, negative: high level of bureaucracy)
  • Government programmes (positive: One-Stop-Shop for business registration)
  • Education and Professional Training (positive: Higher general level of education, better training in management skills; negative: Level of education still not satisfactory, primary and secondary level curriculum does not focus on entrepreneurship)
  • Service sector (positive: Access to bank services is relatively good, negative: high costs of contracting the services for starting a business)
  • Openness of markets (positive: New laws improve the situation yearly, negative: Politics of antitrust)
  • Physical infrastructure (positive: Access to infrastructure is given, negative: Infrastructure is in bad conditions)
  • Social and cultural norms (this success factor was rated the most positive of all – positive: One’s own initiative is valued, negative: High risk of being self-employed)

New programme to strengthen entrepreneurship
Programa de Fomento ao Empresariado (PFE):

• The programme is managed by the Ministry of Economics and the Boston Consulting Group
• The programme shall be implemented in all provinces of Angola until mid-2012.
• Its objective is to offer solutions to the most urgent problems of entrepreneurs in Angola.
• Fields of activities of the PFE:
  • Access to bank credits (especially for MSME)
  • Government guarantees to improve access to credits
  • Risk capital (direct Government investments in companies)
  • Fostering entrepreneurship (Capacity Building and Consulting Services for entrepreneurs)
  • Subsidies (especially for priority sectors)
  • Enhancement of business associations (thus improvement of competitiveness of several sectors).