Exploring responsible entrepreneurship in South Africa for a sustainable future

November marks Global Entrepreneurship Month, a time to reflect on the role of entrepreneurs in shaping economies around the world. In South Africa, the Allan Gray Orbis Foundation (AGOF) has released pivotal research aimed at reframing entrepreneurship beyond mere financial success, advocating for a model rooted in long-term social and environmental value creation.

AGOF's recently published Responsible Entrepreneurship Report of 2025 asserts that responsible entrepreneurship should be defined as a “sustainability-driven business approach that integrates financial profitability with ethical, social, and environmental responsibility.”

This ambitious vision aligns with the United Nations’ 17 Sustainable Development Goals (SDGs), which seek to address pressing issues such as poverty alleviation, hunger eradication, and the promotion of responsible production and consumption practices.

The core principles of responsible entrepreneurship

The AGOF research identifies three foundational characteristics of responsible entrepreneurship. Primarily, it encapsulates the ‘Triple Bottom Line’ of sustainable innovation by balancing economic growth with social welfare and environmental stewardship.

This holistic approach ensures that enterprises strive not only for financial success but also for social well-being and ecological preservation.

Moreover, the Final Literature Review on High-Growth and Small and Growing Businesses (SGBs), co-led by AGOF and Entrepreneurship to the Point (eTTP), provides crucial insights into the barriers faced by entrepreneurs in South Africa.

“The literature review offers practical guidance for entrepreneurs and policymakers to embed sustainability into growth strategies,” remarks Maphefo Sipula, eTTP’s Head of Research and Impact. This collaborative endeavour reinforces AGOF's commitment to fostering a values-driven, evidence-based philosophy of entrepreneurship.

Addressing hurdles on the path to responsible entrepreneurship

Despite commendable intentions, small and medium enterprises (SMEs) encounter substantial hurdles that hinder their capability to mimic their larger counterparts concerning social and environmental impact.

The research highlights an overwhelming administrative burden carried by SMEs compared to large organisations, making it difficult for them to fulfil regulatory and environmental compliance without suitable government incentives.

A supportive ecosystem comprising regulators, investors, legal experts, and entrepreneurs is essential to address these challenges collectively. This unified approach is critical to enabling SMEs to thrive and contribute meaningfully to South Africa's economic and societal fabric.

A diverse African perspective moving forward

Looking ahead, AGOF emphasises the necessity of integrating diverse African perspectives into the discourse on responsible entrepreneurship.

Research should continue to evolve, developing practical models and instruments for small businesses to assess their levels of responsible entrepreneurship.

Such tools need to cater to the distinct contexts of developing economies across the Global South.

“This responsible entrepreneurship model could pioneer groundbreaking work in shaping the first South African framework for responsible entrepreneurship, tested and validated in a Global South context,” notes Carl Herman, Head of Impact Assurance at AGOF.

Developed instruments would provide a means to measure organisational practices within various sectors, paving the way for targeted support and development.

BUSINESS REPORT