With an alarming youth unemployment rate staggering at 45.5%, small businesses may be the alternative to tackle unemployment and contribute to a progressive economy.
According to founder and group CEO of Fetola, Catherine Wijnberg, joblessness is a setback to the economy, ultimately many fall prey to poverty, social unrest and food insecurity.
Fetola, in partnership with FNB Youth Start-up Accelerator (FNBYSA), is a small business development agency that works with stakeholders to help start and grow successful small businesses, hoping to curb unemployment. So far, Fetola has graduated over 2000 thriving small and medium-sized enterprises (SMEs).
“South Africa needs to address the fundamentals underlying youth unemployment. These are the lack of economic growth which limits all job creation, and the lack of preparedness youth have for employment and entrepreneurship. Entrepreneurship is widely slated as the solution to youth unemployment in South Africa,” said Wijnberg.
There are many successful entrepreneurs with no formal education. However, Wijnberg explained work experience and a formal education, preferably higher education, harness prospective business owners to identify their niche market and start building successful businesses.
“Aspiring entrepreneurs have work experience, networks, and exposure to the world of business. Entrepreneurship success rates also increase with post-matric education, which encourages advanced thinking, organisational skills and inner resilience, or grit. Young people with work experience and education are more likely to have the insight needed to identify a niche market for their business and the confidence to launch it.”
She highlighted a marriage between the private sector and small business agencies, such as Fetola, help build entrepreneurial skills of young people, including providing resources to establish SMMEs that would blossom.
“Successfully addressing youth unemployment requires unlocking economic growth, coupled with effective small business development solutions such as business accelerators, to empower young people to create their own opportunities. Ultimately, it is the partnerships between the private sector and small business accelerators that are needed to build businesses that thrive, create long-term beneficial societal impact and more inclusive economic growth.”
Wijnberg said FNB distributed a grant funding of R977 500 to the first intake of participants of the Youth Start-up Accelerator Programme in 2022.
Added SME Development head at FNB, Heather Lowe: “As a bank established by entrepreneurs, FNB has long been committed to offering entrepreneurs meaningful support. Our intention with the FNB Youth Start-up Accelerator is to create a supportive ecosystem for young entrepreneurs, via an investment which has the potential to scale exponentially and make a lasting impact.”
Wijnberg beamed at the success rate of Fetola and FNBYSA partnership, saying: “Now in its third year, the programme has been extremely successful, creating purposeful impact and long-term sustainable returns. In the latest cohort, 12 youth businesses saw growth above 200% while participating in the programme.
“Outlier Leaf Print Herbals experienced 1024% growth. MV Muhali Holdings and The Rambo’s Shisanyama both reported over 600% growth, illustrating what is possible with the right support. More than 90% of the SMEs that have gone through our programmes are still active today, despite a disruptive and challenging environment. Not only have participants increased their turnover and profitability, but they have also proved that with some assistance and direction, small business entrepreneurs can achieve impressive results.”
The Star