The Impact of Modern Technology on The Financing of Startups In South Africa: Using Artificial Neural Networks.

Abstract

This study investigates the predictive impact of modern technology on startup financing, with a particular focus on the relative roles of government support policies and entrepreneurial initiatives in South Africa over the period 2001–2024. To this end, an artificial neural network (ANN) model was employed, implemented via Python software, owing to its robust predictive capabilities in complex economic environments.

The empirical findings demonstrate the efficacy of both predictive models; however, forecasts derived from the government support variable consistently outperformed those based on the entrepreneurial initiatives variable. This outcome suggests that state-led policies are poised to exert a more pronounced influence on startup financing compared to entrepreneurial efforts, at least within the studied context. Nevertheless, the results do not undermine the potential for synergistic cooperation between the public and private sectors, which remains a critical avenue for advancing sustainable development objectives.