Western Cape Entrepreneurial activity outpaces national and global averages, New 2026 Global Entrepreneurship Monitor: Western Cape Report
Media Release by Dr Ivan Meyer, Western Cape Minister of Agriculture, Economic Development and Tourism
The Western Cape’s entrepreneurial ecosystem is performing above the national and global average, with new research showing strong levels of early-stage entrepreneurial activity, new business ownership, innovation, digital technology adoption and international market participation.
The findings are contained in the 2026 Global Entrepreneurship Monitor (GEM) Western Cape Report, which was officially launched today by the Western Cape Government’s Department of Economic Development and Tourism (DEDAT), in partnership with Stellenbosch University. Stellenbosch University was appointed by the GEM Consortium to undertake the research study.
The study established a baseline for the Western Cape’s Total Early-stage Entrepreneurial Activity (TEA) rate, an important indicator of the province’s entrepreneurial activity. The Western Cape recorded a TEA rate of 15.0%, exceeding the South African average of 14.73% and the global average of 14.52%.
The province also recorded the highest new business ownership rate in South Africa at 8.7%, pointing to strong levels of new business ownership and a relatively mature entrepreneurial ecosystem.
The findings further position the Western Cape as a quality-driven entrepreneurial ecosystem characterised by strong innovation, adoption of digital technology, participation in international markets and aspirations for business growth.
The report, however, highlights areas requiring continued attention. While entrepreneurial intentions in the province are relatively high, there remains a gap between entrepreneurial aspirations and actual business start-up activity. Entrepreneurs continue to face challenges including operational costs, skills shortages and business discontinuance.
These findings underscore the importance of continued support for entrepreneurs through mentorship, access to finance, networking opportunities and targeted business support interventions.
Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer, said, “The Western Cape Government views entrepreneurship as an important driver of economic growth, innovation, job creation and increased economic participation. For this reason, I have identified business support as a one of my core priority areas in my portfolio as Western Cape Minister of Agriculture, Economic Development and Tourism. The GEM findings provide an evidence base to deepen our understanding of the province’s entrepreneurial landscape and inform targeted interventions that enable entrepreneurs to start, sustain and grow successful businesses.”
Minister Meyer added that in response to the Western Cape Government’s Growth for Jobs Strategy the Department of Economic Development and Tourism has set a five-year strategic target to increase the province’s TEA rate by 5%. One of the “pictures of 2035 success” is a province where entrepreneurship is considered a viable choice as an economic opportunity and citizens starting up a business – whether formal or informal – have access to the necessary support and an enabling environment. The baseline established through the GEM study will provide an important reference point against which progress towards this target can be monitored.
Achieving sustained growth in entrepreneurial activity will require collaboration across government, the private sector, development organisations, academia, business support organisations and entrepreneurs. The launch brings together stakeholders from government, business, academia, business development organisations and the broader entrepreneurial ecosystem to engage with the findings and consider how they can be translated into practical action.
The launch of the 2025/26 GEM Western Cape Report marks an important step in strengthening the province’s understanding of its entrepreneurial landscape. By using the findings to inform policy, strengthen partnerships and shape targeted support, the Western Cape Government aims to create an environment where more entrepreneurs can start, sustain and grow their businesses, contributing to inclusive economic growth and job creation across the province.
Media Enquiries:
Joe-Mark Arnold CPRP (PRISA)
Head of Communications
Department of Economic Development and Tourism
Western Cape Government
12th floor, Waldorf building, 80 St George’s Mall, Cape Town
Tel: 021 483 0848
Email: joe-mark.arnold@westerncape.gov.za
Website: www.westerncape.gov.za/dept/dedat