03 Mar Entrepreneurship and Today’s Youth
Youth Unemployment has been highlighted as a serious issue in South Africa and according to the latest statistics from The Global Entrepreneurship Monitor, there is a low number of established small businesses in this country. The report suggests that our rate for new business entrepreneurs is lower than other Sub Saharan countries.
Small business start-ups have been recognized as a valuable employment provider in South Africa. The GEM report established that many smaller businesses are in fact closing down due to circumstances such as profitability problems as well as difficulties in gaining access to finance.
An interesting finding in the report on the youth in South Africa was that 61% believed that becoming an entrepreneur meant having to work hard for very little money. Apparently only a quarter of the youth have the potential to become entrepreneurs. With the high youth unemployment in our country it may be necessary to encourage and educate school goers to view entrepreneurship as an opportunity to have a viable career.
With youth unemployment at roughly 42%, government has embarked on state programs which are promoting entrepreneurship amongst the youth. Perhaps the focus needs to be on encouraging young people to start their own business to achieve their economic independence. Entrepreneurship can perhaps give the youth of the future not just hope or financial independence, but the ability to create jobs for their community.