Youth Entrepreneurs: Building the Future of South African Business
As we commemorate International Youth Day, the South African Supplier Diversity Council (SASDC) recognises the power, potential, and perseverance of young entrepreneurs across the country. In a nation grappling with economic inequality and high youth unemployment, South Africa’s youth are not just looking for jobs — they’re creating them.
South Africa’s youth, defined as individuals between the ages of 15 and 34, make up more than 35% of the population. Yet this group faces extraordinary economic challenges. As of 2024, the youth unemployment rate remains above 44% — among the highest globally (Stats SA). But despite this, or perhaps because of it, young people are increasingly turning to entrepreneurship as a pathway to inclusion.
According to the Global Entrepreneurship Monitor (GEM), South Africa’s youth-led early-stage entrepreneurial activity has seen steady growth, particularly among individuals aged 18–24. The majority of these ventures are being started out of necessity — yet many are evolving into viable businesses, generating local impact and national relevance.
Youth-Owned Businesses on the Rise
The National Youth Development Agency (NYDA) and Small Enterprise Development Agency (SEDA) report that the number of youth-owned SMMEs has increased in the last five years — particularly in sectors like retail, technology, agriculture, and digital services.
Innovative youth-led startups are emerging in e-commerce, green tech, and fintech, while rural youth are venturing into agro-processing and sustainable farming. Young entrepreneurs are behind some of the most dynamic new brands in South Africa today — proving that with the right support, age is no barrier to impact.
The Barriers They Face
Despite the promise, young entrepreneurs face serious headwinds.
• Access to capital remains the most cited challenge for youth-owned businesses. Many young founders lack collateral, credit history, or financial networks to access traditional funding routes.
• Market access is another hurdle. Without strong linkages to supply chains or procurement systems, youth-owned businesses often remain stuck in early stages of growth.
• Skills gaps, limited business mentorship, and regulatory complexity further inhibit youth success — particularly for those in rural or township areas.
These systemic barriers demand a coordinated response from both public and private sectors — not as charity, but as an investment in the country’s economic future.
The Case for Inclusive Supply Chains
At SASDC, we believe that diverse and inclusive supply chains must include youth-owned businesses. Not only does this unlock innovation, but it builds long-term economic resilience.
Inclusive procurement is a powerful tool: when corporates source from youth-led SMMEs, they enable job creation, skills development, and wealth generation in communities most affected by unemployment. Programs that link youth entrepreneurs to large buyers, while offering business development support, have already produced success stories — and they can scale further.
Supporting youth entrepreneurs is not just an act of empowerment — it's a strategic move for organisations seeking fresh thinking, agile suppliers, and long-term partnerships.
Lighting the Path Forward
Government agencies like the NYDA, SEDA, and the Department of Small Business Development, along with private incubators and funders, are already providing tools for youth business growth. SASDC complements these efforts by:
• Advocating for inclusive procurement
• Facilitating corporate-supplier linkages
• Developing supplier capabilities
• Mentoring young black-owned businesses into larger value chains
On this International Youth Day, we recommit to amplifying youth enterprise — not as a trend, but as a transformation. South Africa’s future will be built by young hands and bold minds. Let’s ensure they have the tools, trust, and traction to lead.