New research highlights drivers of responsible entrepreneurship in SA
The findings redefine entrepreneurship beyond profit generation, positioning it as a lever for societal resilience, sustainable development and inclusive growth.
Published during Global Entrepreneurship Month, the research compiles data from a range of studies to build what Agof calls a “sustainability-driven business approach” for the local market.
This model integrates profitability with social responsibility, environmental stewardship and ethical conduct. It aligns directly with the UN Sustainable Development Goals, including poverty reduction, education, health, and responsible consumption and production.
Defining responsible entrepreneurship
Agof’s Responsible Entrepreneurship Report of 2025 identifies three core characteristics of responsible entrepreneurship:
- Creating long-term financial and social value.
- Embedding sustainable practices into business strategy.
- Balancing economic growth, environmental preservation, and community well-being, triple bottom line.
The research argues that while entrepreneurship is already seen as central to South Africa’s economic development, its potential to contribute to broader societal impact remains underutilised.
Embedding sustainability in growth strategies
A supporting report – the Final Literature Review on High-Growth and Small and Growing Businesses (SGBs) – developed with entrepreneurship to the point (ettp), analyses the enablers and constraints for responsible entrepreneurship in South Africa.
It provides practical guidance for embedding sustainability into growth strategies for entrepreneurs, ecosystem partners and policymakers.
Carl Herman, head of impact assurance at Agof, says the work is aimed at advancing an evidence-based understanding of entrepreneurship that combines research, policy and practitioner insight.
SMEs face higher compliance hurdles
The research finds that small businesses, despite being deeply rooted in their communities, often struggle more than large companies to meet environmental, regulatory and reporting standards.
High administrative costs and limited technical capacity make it difficult for SMEs to maintain compliance without external support.
Larger organisations, in contrast, have established systems for environmental management, employment practices and social impact reporting.
Ecosystem collaboration essential
The reports call for a stronger enabling ecosystem, including policymakers, regulators, financiers, and legal and technical experts, to help small businesses adopt responsible practices without compromising growth.
This, it argues, is where South Africa can unlock the full value of entrepreneurship – not just for economic contribution, but for resilience, inclusivity, and sustainability.