As someone born in 1981, five years after the watershed events of June 16, 1976, Youth Day has always held a profound and complex meaning for me.
While I did not experience the brutality and oppression of that day directly, its echoes resonated deeply throughout my upbringing in a transforming South Africa. Youth Day is not merely a historical observance; it is a living reminder of the sacrifices made by a generation of young people who, with courage and
conviction, confronted an unjust system. They fought for a future where opportunity, dignity, and self-determination would be accessible to all, irrespective
of race or background. Their actions laid the foundation for the democratic South Africa we inhabit today, and it is our collective responsibility to ensure their legacy translates into tangible progress for the current generation.
From Job Seekers to Job Creators: Youth Entrepreneurship Rising
From an entrepreneurship and Micro, Small, and Medium Enterprise (MSME) perspective, Youth Month
should serve as a powerful call to action. The dreams of economic liberation and opportunity, for which the youth of '76 marched, are still largely unfulfilled
for many young South Africans. The statistics paint a stark picture: according to the latest data from Statistics South Africa, youth unemployment remains
a significant challenge, with a disproportionately high number of young people struggling to find formal employment. While the exact figures fluctuate,
the overall trend of youth unemployment persistently hovers at alarming levels, often exceeding 40% for those aged 15-34. This is a crisis that
demands innovative and sustained solutions.
However, amidst these challenges, there's a powerful narrative of resilience and ambition emerging through youth entrepreneurship. Despite the
formidable barriers, young South Africans are increasingly turning to self-employment, starting their own businesses and creating opportunities where
none existed. While comprehensive, up-to-date figures from Stats SA on youth entrepreneurship are still emerging, the anecdotal evidence and regional
reports suggest a growing appetite for entrepreneurial ventures among the youth. The Global Entrepreneurship Monitor (GEM) Report for 2023/ 24,
while noting a decline in overall entrepreneurial activity in South Africa, still highlights pockets of nascent entrepreneurial spirit. The FinScope Survey 2024,
in its deep dive into financial inclusion, further illuminates the landscape of informal sector businesses, where many young entrepreneurs begin their
journeys, underscoring the need for tailored financial and non-financial support.
Powering Youth Enterprise Through Policy and Purpose
This is where the Small Enterprise Development and Finance Agency (SEDFA) steps in. Established under the National Small Enterprise Amendment Act of
2024, SEDFA is a merged entity designed to be a comprehensive enabler for MSMEs. Our mandate is clear: to provide integrated financial and
non-financial support to micro, small, and medium enterprises, with a deliberate focus on underserved groups, including the youth. Our existence is
deeply rooted in national policies like the National Development Plan (NDP) 2030, which envisions MSMEs as the primary drivers of job creation, aiming for
90% of the 11 million jobs needed by 2030 to come from this sector. The National Integrated Small Enterprise Development Strategy and Framework
also outlines the critical need for a robust ecosystem that fosters entrepreneurship, particularly among the youth.
SEDFA is committed to bridging the gap between entrepreneurial aspirations and actual business success for young South Africans. Our approach is
multi-faceted, aligning with the Department of Small Business Development's MSME and Cooperatives Funding Policy and its Incubation and
Business Development Services Policy. We understand that access to finance is a persistent hurdle. This is precisely why SEDFA administers and implements
The Youth Challenge Fund. This fund is specifically designed to address the unique financial needs of young entrepreneurs, providing seed funding,
working capital, and expansion finance to viable youth-led ventures.
Beyond funding, we recognize that capital alone is often insufficient. That's why our support extends to robust non-financial interventions. Through our
Annual Performance Plan, SEDFA prioritizes various youth entrepreneurial programmes and interventions, including mentorship, business development
services, and capacity building. This aligns with the GEYODI Policy and Framework, which champions inclusive entrepreneurship, recognizing the need
for tailored support for youth, women, and people with disabilities. We also draw inspiration from policies on Youth Development from the Department
of Women, Youth and People with Disabilities, and the National Treasury's Financial Inclusion Policy, ensuring our efforts contribute to broader national goals
of economic participation.
Youth Entrepreneurship Beyond Borders: Lessons
from BRICS and Beyond
Looking beyond our borders, the global landscape underscores the imperative of youth entrepreneurship. The African Union's Agenda 2063, in its vision for
a prosperous and integrated Africa, places significant emphasis on empowering its youthful population through skills development and
entrepreneurship. Similarly, the UN's Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 9
(Industry, Innovation, and Infrastructure), implicitly advocate for fostering an environment where young people can innovate and create sustainable
enterprises.
Across the BRICS nations, there's a shared understanding of the demographic dividend that youth represent. Countries like India, a leading force in the
BRICS Youth Chapter's Entrepreneurship Working Group, have implemented diverse programs to foster a vibrant startup ecosystem among their
young population. China, with its vast digital economy, has seen an explosion of youth-led tech ventures. This collaborative spirit within BRICS, as highlighted
by the BRICS Youth Chapter, offers valuable lessons and opportunities for knowledge exchange in youth development.
Further afield, nations like Saudi Arabia are investing heavily in diversifying their economies through youth empowerment initiatives, fostering
entrepreneurship as a key pillar of their Vision 2030. African peers like Nigeria, Rwanda, and Kenya are also making significant strides. Nigeria's multitude
of youth enterprise development programs, Rwanda's focus on digital entrepreneurship and incubation, and Kenya's push for technical and vocational
training linked to entrepreneurship, all provide compelling models. And then there's Estonia, a small Baltic nation that has become a global leader in
digital entrepreneurship, demonstrating how strategic policy and a supportive ecosystem can enable young people to thrive in the digital age.
Youth Day for South Africans is a moment for introspection, a time to honour the past while actively shaping a more inclusive and prosperous future. For
SEDFA, it is a reaffirmation of our unwavering commitment to unlocking the entrepreneurial potential of our youth. By providing access to capital
through initiatives like the Youth Challenge Fund, coupled with crucial mentorship and business development support, we aim to empower a new generation
of job creators, innovators, and nation-builders. The spirit of '76 lives on, not just in memory, but in the boundless potential of every young South
African entrepreneur.