Crucial research in the fight against youth unemployment shows that mentoring young entrepreneurs is sorely lacking in South Africa, and help is especially needed in the writing of business plans.
The researchers found that many young people could become entrepreneurs if they have proper guidance and funding to kick-start their businesses.
The research was a joint project between Walter Sisulu University, the University of Johannesburg, and the University of Fort Hare, with Tafadzwa Mambiravana from the Department of Sociology as a co-author.
Methodology
For this study, the authors set out to explore the impact of a lack of business mentorship on businesses run by young people. They found that in the Buffalo City municipality in the Eastern Cape, the absence of youth mentorship has widened the inequality gap and triggered deep youth poverty.
The study highlighted that mentoring was highly needed to write business plans.
Twenty young entrepreneurs were interviewed for the study, and most said they did not receive mentoring to help them in their businesses.
The authors pointed out that mentorship is critical globally to boosting entrepreneurship and driving long-term economic growth through career advancement and employment creation. However, it was essential in Africa, with its young population.
Findings
In South Africa, youth unemployment accounts for 73% of the unemployment rate. This is causing an enormous drain on the fiscus.
The study has found a strong need for entrepreneurial mentoring among the youth in the Buffalo City Metro (East London). It highlighted that young entrepreneurs in the metro were competent and had passion, personality, attitude, creativity, and customer care, but there were high levels of interest in mentoring for business plans, company start-ups for junior entrepreneurs, resource requirements, and legal aspects of an enterprise.
The researchers said they also found an absence of business knowledge, low education levels, and limited platforms to expose youth to entrepreneurial skills and knowledge required to drive innovative ventures.
The study found it imperative to develop entrepreneurial knowledge among the youth and entrepreneurial programs that Link youngsters up with other business organizations such as the Chamber of Commerce, South African United Business Confederation (SAUBC) and the Global Business Round Table to boost their confidence and inspire them.
“These interactions also allow youth to experience first-hand the challenges successful entrepreneurs face,” the researchers concluded.
“The findings of the study point to vital insights for local government officials and policymakers. Given the high unemployment in South Africa, supporting youth entrepreneurship remains a strategic and innovative method for promoting youth development and growth. The study has noted the eagerness of youth in the Buffalo City Metro to indulge in entrepreneurship; however, hindrances that emanate from limited business knowledge start-up capital, among others, adversely affects them,” the researchers concluded.
