“With a majority of African nations diversifying from traditional sources of income, entrepreneurship is increasingly seen as a key to economic growth. So far, entrepreneurship has yielded huge returns for entrepreneurs, and according to experts, there lies great untapped potential to drive the African continent into its next phase of development.” says Raphael Obonyo.
Nigeria, Egypt, South Africa, Algeria and Morocco are listed among the countries with the highest gross domestic product growth rate, leading to Africa being documented as a third-world continent with great economic potential. However, development remains a critical challenge for these emerging economies. This is due to numerous factors, such as the lack of socio-economic infrastructure, funding to stimulate change and lest we forget, the negative impact caused by the COVID-19 pandemic.
But, is it really all that bad? We’ve all heard the saying, “for every problem, there is a solution.” Well, this problem presents an opportunity for a renewed focus on the importance of entrepreneurship development, particularly for the youth.
According to the DBSA, numerous studies have indicated that entrepreneurship is key in driving sustainable economic growth. The youth in Africa, aged 15-24, is recorded as the largest and growing proportion of the population and projected to increase by 42 per cent by 2030. According to this population report, youth can be a positive force for development when provided with the knowledge and opportunities they need to thrive.
“Entrepreneurship, if well managed, can create more jobs on the continent and increase the middle class which is essential in sustaining economic growth. There is need to integrate entrepreneurship training in formal education in Africa to prepare the youth for the future,” says Mr. Wadongo.
So what exactly does the youth entrepreneurial development entail?
Entrepreneurship drives innovation, thereby offering new products and services that meet the current demands of the market. It also plays a central role in the creation of job opportunities, ultimately contributing to productivity, regional and national economy.
Therefore, driving youth entrepreneurial development is critical and refers to enhancing young entrepreneurs’ knowledge and skills through coaching and training programmes. Building youth development skills involves providing youth access to resources and networks that encourage radical transformation.
According to Jessie Taylor, here are five reasons why South Africa needs more youth entrepreneurs:
1. Reducing youth unemployment
South African youth are the most disadvantaged in the labour market. 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.
2. 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.
3. Creating more jobs
Not all entrepreneurs hire staff and those who are hiring staff tend to employ between two and four people. Especially in the informal sector, entrepreneurs are not likely to hire ten or more people. This means that making an impact on unemployment through entrepreneurship requires large-scale entrepreneurial activity and cannot rely on only a few business owners.
4. To encourage other young entrepreneurs
Young entrepreneurs receive the least support in terms of business development, with only around 15% of business development services directed toward youth. This is even worse in rural or township areas, which often do not have traditional small business support structures. But the more youth who enter into entrepreneurship, the more likely there are to be programmes developed for this sector.
Topic: 2 Importance of promotion of youth entrepreneurship and innovation in Africa.
“With a majority of African nations diversifying from traditional sources of income, entrepreneurship is increasingly seen as a key to economic growth. So far, entrepreneurship has yielded huge returns for entrepreneurs, and according to experts, there lies great untapped potential to drive the African continent into its next phase of development.” says Raphael Obonyo.
Nigeria, Egypt, South Africa, Algeria and Morocco are listed among the countries with the highest gross domestic product growth rate, leading to Africa being documented as a third-world continent with great economic potential. However, development remains a critical challenge for these emerging economies. This is due to numerous factors, such as the lack of socio-economic infrastructure, funding to stimulate change and lest we forget, the negative impact caused by the COVID-19 pandemic.
But, is it really all that bad? We’ve all heard the saying, “for every problem, there is a solution.” Well, this problem presents an opportunity for a renewed focus on the importance of entrepreneurship development, particularly for the youth.
According to the DBSA, numerous studies have indicated that entrepreneurship is key in driving sustainable economic growth. The youth in Africa, aged 15-24, is recorded as the largest and growing proportion of the population and projected to increase by 42 per cent by 2030. According to this population report, youth can be a positive force for development when provided with the knowledge and opportunities they need to thrive.
“Entrepreneurship, if well managed, can create more jobs on the continent and increase the middle class which is essential in sustaining economic growth. There is need to integrate entrepreneurship training in formal education in Africa to prepare the youth for the future,” says Mr. Wadongo.
So what exactly does the youth entrepreneurial development entail?
Entrepreneurship drives innovation, thereby offering new products and services that meet the current demands of the market. It also plays a central role in the creation of job opportunities, ultimately contributing to productivity, regional and national economy.
Therefore, driving youth entrepreneurial development is critical and refers to enhancing young entrepreneurs’ knowledge and skills through coaching and training programmes. Building youth development skills involves providing youth access to resources and networks that encourage radical transformation.
According to Jessie Taylor, here are five reasons why South Africa needs more youth entrepreneurs:
1. Reducing youth unemployment
South African youth are the most disadvantaged in the labour market. 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.
2. 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.
3. Creating more jobs
Not all entrepreneurs hire staff and those who are hiring staff tend to employ between two and four people. Especially in the informal sector, entrepreneurs are not likely to hire ten or more people. This means that making an impact on unemployment through entrepreneurship requires large-scale entrepreneurial activity and cannot rely on only a few business owners.
4. To encourage other young entrepreneurs
Young entrepreneurs receive the least support in terms of business development, with only around 15% of business development services directed toward youth. This is even worse in rural or township areas, which often do not have traditional small business support structures. But the more youth who enter into entrepreneurship, the more likely there are to be programmes developed for this sector.
5. Poverty Alleviation
Research has shown that young entrepreneurs can earn around R10 000 a month, immediately uplifting them from the poverty associated with unemployment. This amount almost doubled for entrepreneurs working in the formal sector. In addition, the job opportunities created by entrepreneurs also uplift others out of poverty. Creating employment thus has a positive impact on the individual, their family, and society as a whole.
To truly transform Africa’s economy, the country needs more youth entrepreneurs to create a lasting impact on job creation and poverty alleviation. This requires us as a society to encourage entrepreneurship as a career path, rather than as a last resort, and to provide these young people with the support they need to start enterprises.
5. Poverty Alleviation
Research has shown that young entrepreneurs can earn around R10 000 a month, immediately uplifting them from the poverty associated with unemployment. This amount almost doubled for entrepreneurs working in the formal sector. In addition, the job opportunities created by entrepreneurs also uplift others out of poverty. Creating employment thus has a positive impact on the individual, their family, and society as a whole.
To truly transform Africa’s economy, the country needs more youth entrepreneurs to create a lasting impact on job creation and poverty alleviation. This requires us as a society to encourage entrepreneurship as a career path, rather than as a last resort, and to provide these young people with the support they need to start enterprises.
