Blue Catalyst aims to match ideas with finance

Despite South African president Thabo Mbeki citing increased entrepreneurship as the key to halving the country's 31% unemployment rate by 2010, reports suggest there is still a long way to go.

With a study by the Global Entrepreneurship Monitor suggesting that the country has fallen in a worldwide entrepreneurship league table, a new venture - called Blue Catalyst - has now been launched in Johannesburg to try to connect budding entrepreneurs with people who can help realise their dreams.

Its chief executive, Kevin Fleischer, told the BBC's World Service that Blue Catalyst is inviting experienced entrepreneurs, mentors, investors and patrons to participate in a formalised network.

The link between the entrepreneurs and sources of finance is not very efficient Kevin Fleischer, Blue Catalyst

He believes that a lack of skill and a lack of confidence in the individual's ability to start a business is the main problem.

He also thinks there are not enough role models to encourage people wishing to venture into new businesses, although he recognises that the biggest drawback in often a lack of finance.

"It isn't that there is a shortage of finance - it seems that the communications link between the entrepreneurs and sources of finance is not very efficient," he said.

"South Africans are full of enthusiasm and they are very innovative, but they are not particularly good at commercialisation," he said.

I firmly believe there is support for people who have the right ideas Itumeleng Kgaboesele, ceo Sphere Holdings

One major problem is the perception that many entrepreneurs in the country are arrogant.

A prevailing attitude tends to be: "I have a great idea and therefore the world owes me a business," said Mr Fleischer, although he thinks that is born out of inexperience and naivety rather than arrogance.

Poor education

He does concede however, that South Africans don't realize how much hard work it needs to actually make a business succeed.

But some entrepreneurs lay the blame on poor education.

"The primary difference is the level of skills that you have in a country - due to our history a significant number of people have not had access to quality education," said Itumeleng Kgaboesele, an entrepreneur in Johannesburg who launched his own venture capital company Sphere Holdings.

Compared to a country like Thailand, where 19% of all adults have their own business, the number of South Africans who succeed remains very low.