Why aspiring young entrepreneurs are key to South Africa's future
Time:July 7, 2023
South Africa's youth, numbering just under 21 million, are the country's largest demographic group. According to the World Bank's Vice-President for Africa, Africa's youth are the continent's most "valuable asset" and represent untapped potential. In a real sense, they are the leaders, innovators, scholars and entrepreneurs of the future and will play a central role in determining the trajectory of South Africa's socio-economic development. The extent of this role, however, depends on providing youth with the necessary support to address the ills of economic exclusion, limited education and training, restricted access to finance and inequality.
An overview of youth entrepreneurship in South Africa
Research by Global Entrepreneurship Monitor analysed data from five regions, including Sub-Saharan Africa, and found that young people show a higher willingness to start a business than adults. Across all regions analysed, young people were 1.6 times more likely to have entrepreneurial ambitions than older generations.
"Young people hold the key to South Africa's future success and we must support them." -- David Morobe
Despite these encouraging opportunities, young, aspiring entrepreneurs in South Africa face some seemingly insurmountable obstacles. These include the devastating impact of the Covid-19 pandemic on the ability of millions of local small businesses to operate. In the wake of the pandemic, emerging entrepreneurs face other unique challenges, such as a growing energy crisis, rising costs of living and the turbulence of the recession.
In light of South Africa's Youth Month in June, David Morobe says: "South Africa's young people are in the best position to address the unique issues facing the emerging generation. History teaches us that many times the greatest examples of resilience and courage come in the face of extreme adversity. As a country, we face multiple challenges, but by supporting young entrepreneurs through a sustained and collaborative drive, we can help build leaders who can address our greatest obstacles. "
Youth are the drivers of innovation
As digital natives who grew up using technology, young people are in the best position to drive innovation. Some examples of this have emerged in recent years in areas such as fintech and e-commerce, where there is no shortage of good business ideas.
