How to achieve Responsible Entrepreneurship in South Africa
To mark Global Entrepreneurship Month Allan Gray has released research on responsible entrepreneurship in South Africa which reframes entrepreneurship as a force for long-term social and environmental value creation, instead of narrow and short-term definitions of success.
AGOF published important research this year collated from a wide range of sources on the challenges and solutions for achieving more responsible entrepreneurship in South Africa. AGOF is a key advocate of a sustainable, inclusive, and values-driven entrepreneurial ecosystem in South. The research aims to create a robust model for responsible entrepreneurship, tailored for the African market.
Defining and promoting responsible entrepreneurship in SA
AGOF’s Responsible Entrepreneurship Report of 2025 defines responsible entrepreneurship as a “sustainability-driven business approach that integrates financial profitability with ethical, social and environmental responsibility”. Entrepreneurship directly supports the achievement of the 17 United Nations global Sustainable Development Goals (SDGs), including alleviating poverty, ending hunger, promoting human and environmental health, and promoting responsible production and consumption of products.
Central to this model is the “Triple Bottom Line”: economic viability, social well-being, and environmental preservation. The research highlights that responsible entrepreneurs build long-term value by embedding sustainability into strategy, innovation, and operations ultimately creating meaningful financial and social returns.
Complementing this research, the Final Literature Review on High-Growth and Small and Growing Businesses (SGBs) co-led by AGOF, and Entrepreneurship to the Point (eTTP) – offers empirical insights into the factors that enable or constrain entrepreneurial success in South Africa. “The literature review provides practical guidance for entrepreneurs and policymakers to embed sustainability into growth strategies,” notes Maphefo Sipula, eTTP’s Head of Research and Impact.
“Together with eTTP, our work reinforces our commitment to advancing a values-driven, evidence-based understanding of entrepreneurship, one that integrates academic rigour, policy relevance and practitioner insight,” says Carl Herman, Head of Impact Assurance at the Allan Gray Orbis Foundation.
Understanding and addressing the common hurdles to responsible entrepreneurship
According to the research, one of the greatest challenges faced by small businesses is the administrative burden they carry versus large organisations. While small and medium enterprises (SMEs) are often sincerely dedicated to the community and society at large, large corporations find it easier to achieve a positive impact in environmental management, employment, local communities, and controlling and reporting procedures.
Smaller entrepreneurs also find it challenging to keep up with regulatory and environmental compliance without government incentives. A supportive ecosystem comprised of regulators, investors, legal experts and entrepreneurs could solve this challenge together, the research suggested.
A diverse African perspective
AGOF believes that the next step in the research of responsible entrepreneurship is to include more diverse African perspectives into the body of work on how to achieve greater levels of responsible entrepreneurship in the Global South. More practical models and instruments need to be developed to help small businesses evaluate their levels of responsible entrepreneurship.
“This responsible entrepreneurship model and instrument could be groundbreaking work in developing the first South African responsible entrepreneurship model or framework that is tested and validated in a Global South context. This instrument can be used to measure… entrepreneurs and organisations at various levels and the necessary areas of support and development.
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How to achieve Responsible Entrepreneurship in South Africa
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