YOUTH ENTREPRENEURSHIP BY JESSIE TAYLOR
Five reasons why South Africa needs more young entrepreneurs
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frica’s population is growing, and in the next three decades, 60% of the continent’s population will be under the age of 25. But in South Africa, this growing population of youth face one of the highest unemployment rates in the world. However, South Africa’s youth also show a high propensity for entrepreneurship. More than half of all South African entrepreneurs are youth and encouraging more young people to start business interests could be the key to unlocking South Africa’s economic potential. Here are five reasons why South Africa needs more youth entrepreneurs: REDUCING YOUTH UNEMPLOYMENT South African youth are the most disadvantaged in the labour market. The latest Quarterly Labour Force Survey released by Statistics South African showed that the unemployment rate was 64% for those aged 15 and 24. It stood at 42.1% for those aged 25 between 34. In comparison, the national rate stands at 34.5%. Only around 2.5 million of South Africa’s 10 million young people aged 15 to 24 are active in the labour force. And those that are inactive say their primary reason is discouragement, in that they have lost hope of finding a job that suits their skills or in the area they reside. The antidote is for entrepreneurs to create their own employment, in the areas in which they live. BUILDING THE INFORMAL SECTOR Young entrepreneurs working in the informal sector outnumber those in the formal sector. While historically disadvantaged communities often lack access to resources and education, their informal sectors offer an opportunity for young businesspeople to make a lasting difference. More than half of South Africa’s unemployed population live among the 22 million South Africans whose homes are in townships and informal settlements. This means that entrepreneurial activity that impacts these areas is likely to have some of the most meaningful impacts, in areas that need it most.
16 | Public Sector Leaders | June 2022
