Black economic empowerment legislation could potentially have a positive effect on stimulating entrepreneurial activity in South Africa – and with the country’s level of early stage business activity measured to be at a relatively low level in comparison with other developing nations around the world, such an effect could not come at a better time.

That’s according to Nikki Kearns, director of business banking at Standard Bank, one of the sponsors of the 2005 Global Entrepreneurship Monitor Report (GEM).

Conducted by the University of Cape Town’s Graduate School of Business, the GEM Report provides empirical data on the level of entrepreneurship in developing nations which is intended to stimulate debate and inform policy.

“GEM 2005 indicates that South Africa’s level of entrepreneurial activity has decreased since the 2004 survey; however, as the effects of broad based black economic empowerment legislation take place in this country, it is my view that as the level of people entering the formal economy – as well as gaining access to banking systems – increases, more people will be in a position to exercise their business creativity than was previously possible,â€