Effect of Contextual Factors on the Entrepreneurial Ecosystem in South Africa

Having the proper infrastructure is crucial because it fosters prosperous enterprise and a skilled labor force capable of solving environmental issues. There are worries about the potential negative effects of human capital centered on innovation, despite studies showing benefits. This study examines how contextual factors such as business environment, infrastructure, and human capital, influence South Africa’s entrepreneurial ecosystem. Multiple Regression Technique was used for analysis. Findings showed that each of the three factors has a remarkable impact, with business environment showing the highest positive relationship to the Ecosystem Index. The results highlight the significance of focusing on sustainable activities when developing human capital. To promote a more sustainable entrepreneurship environment, the study suggests that policymakers should implement incentives, allocate finances for infrastructure, and establish educational and knowledge-sharing initiatives to encourage the sustainability of the entrepreneurial ecosystem. Future research directions will focus on investigating how additional contextual factors affect ecosystems in various regions and industries. The study also suggests the evaluation of gender equality in access to financial and business assistance.