Youth unemployment in South Africa remains one of the country’s most urgent socio-economic challenges. Yet, the solution many continue to champion is also one of its most under-supported: youth entrepreneurship.
With the official youth unemployment rate hovering above 32% and a staggering 62% among those aged 15 to 24, South Africa finds itself at a critical junction. Despite millions of young people hungry for change, only 3.5% are engaged in early-stage entrepreneurial activity, according to the Global Entrepreneurship Monitor 2024. Less than 10% believe they have the skills or confidence to start a business.
No ad to show here.
In other words: we’ve told young people to be job creators, but we haven’t handed them the keys to the ecosystem.
As Youth Month 2025 unfolds under the theme “Skills for the Changing World”, Luncedo Mtwentwe, host of the SAICABiz Impact podcast, is calling for a more meaningful and systemic approach to youth entrepreneurship.
“Building a business is like raising a baby. It takes years before it can even walk. Most people give up too soon because the system doesn’t reward patience,” says Mtwentwe. “Funders overseas often back people who’ve failed before, because it shows growth. Here, failure is still stigmatised.”
Mtwentwe isn’t alone. Across the SAICABiz platform, young entrepreneurs like Alunga Madala are voicing similar sentiments. Madala, speaking on a recent youth panel, went so far as to call South Africa’s high unemployment rate an “opportunity.” He stressed the untapped potential if young people are equipped with real tools, not just motivational slogans.
But turning that opportunity into real impact takes more than attitude. It takes access, structure, and long-term investment. Here are five actionable ways government and private sector leaders can walk the talk and start backing young founders in a meaningful way.
1. Flexible, milestone-based funding
Too many youth-led businesses fail before they begin because of inaccessible or rigid capital models. Mtwentwe argues for a shift toward staged funding. These are small grants tied to actual progress: first customers, working prototypes, or team formation. These models offer accountability while reducing risk and pressure.
2. Long-term mentorship with teeth
“Once-off bootcamps aren’t enough,” says Mtwentwe. “Young founders need consistent, accountable guidance.” Think structured mentorship over 12 to 24 months. Experienced entrepreneurs or executives can help build confidence and navigate roadblocks across every phase, not just pitch days.
3. Networks, not just contacts
It’s not just about who you know. It’s about who opens the door. Procurement pipelines, supply chains, and investor rooms are often locked to youth without the “right” networks. Systemic solutions include active matchmaking into corporate supplier programmes and guaranteed access to investor showcases.
4. Real-world skills taught early
Pitching, pricing, budgeting, and negotiating are all skills that can be taught. Yet most young South Africans only encounter these concepts once they’re already trying to run a business. Entrepreneurship education needs to start at school level and be scaled through youth accelerators, TVETs, and community hubs. The Department of Education’s 2030 plan to institutionalise entrepreneurship in schools is a strong start. The private sector can move faster.
5. Normalise failure
This is arguably the hardest cultural shift and also the most urgent. Failure should not disqualify a young founder from future funding. Instead, it should be a rite of passage. “Failure should feel like part of the process, not the end of the road,” says Mtwentwe. This requires funders, corporates, and incubators to actively reward resilience and experimentation.
More than ideas. A path to impact.
If South Africa’s youth are expected to lead the way in building new industries and solving legacy problems, then the scaffolding must meet them where they are. That means capital with compassion, education with application, and mentorship with muscle.
As Mtwentwe concludes:
“If we get this right, we’re not just helping youth succeed. We’re investing in the job creators, solution builders, and future economic backbone of this country.”
And in a world that’s rapidly changing, that may be the smartest investment South Africa can make.
