Entrepreneurs continue to struggle to enter South Africa's mining industry, which is still being dominated by established participants and "old timers", Endevour MD Malik Fal argues.
South Africa has a long history in mining, and is currently still the one of world's richest countries in terms of its mineral reserves, with an estimated value of $2,5-trillion.
But, Fal said that the country's mineral riches were still largely owned by big corporates, even though some entrepreneurs had been able to achieve great success in the capital-intensive sector.
Endeavour's new study entitled 'State of Entrepreneurship in South Africa', released in partnership with FNB on Wednesday, argues that the country's Mining Charter had been a good starting point for encouraging new entrants.
"Government is playing a vital role in encouraging the growth of smaller entrepreneurs by offering incentives to large mining companies using services and products of smaller companies at the upstream stages of the value chain," said Endeavour search and selection analyst Rezaan Daniels.
However, he pointed out that the sector was still highly regulated, which often complicated the entry of smaller participants into the sector.
Daniels said that innovative thinking and the development of relevant products would be key to future entry. Fal added that there was space for entrepreneurs to enter the value-add minerals segment. Despite having extracted minerals for more than 130 years, the industry has, hitherto, added little value to these resources locally, but is now coming under increasing pressure to beneficiate products ahead of export.
"There are still very big business opportunities in the mining and manufacturing industries in South Africa and entrepreneurs need to develop innovative goods and service to ensure future growth in these industries.
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