Entrepreneurship a solution to youth unemployment – but there are challenges

The creative economy is thriving, with content creators, designers and beauty professionals making their mark.
With nearly half of South Africa's youth struggling to find traditional jobs, entrepreneurship is a viable alternative.
FNB says the crisis faced by the youth needs innovative solutions, not just job creation. Youth entrepreneurship is a sustainable catalyst for job creation and economic growth.
Janis Robson, Head of Business Development at FNB, notes that the youth are increasingly turning to entrepreneurship as a deliberate and empowered choice to build their futures.
Side hustles and formal businesses
Robson adds that more than 35% of the businesses that bank with them with a turnover of less than R5 million are comprised of young entrepreneurs aged 18 to 35.
'There are a mix of skilled professionals, graduates, and those without formal qualifications, many of whom are running side hustles or growing formal businesses.'
She says trends indicate that the largest share of youth-led businesses falls into business and administrative services, followed by community services, retail, construction and transport.
Additionally, the creative economy is thriving, with content creators, designers and beauty professionals making their mark, particularly in metro areas.
'Youth are also increasingly leveraging technology to develop scalable solutions that address local challenges.'
ALSO READ: Political events happening in June expected to affect South African SMEs
Entrepreneurship challenges faced by youth
Robson notes that opportunities are growing, but young entrepreneurs are still faced with significant challenges.
One of the biggest challenges is access to funding, followed by gaps in industry-specific skills and general business knowledge.
'Safety concerns, crime, and credibility issues, especially among young women, also limit business growth.
'Many also struggle with financial literacy, which can lead to early business closures. Some start ventures while job-hunting, only to abandon them when formal employment becomes available.'
Mental health in entrepreneurship
Phumla Mavundla, Head of Marketing at Metropolitan, has highlighted the need for entrepreneur programmes to also focus on mental health. By placing mental wellness at the core of entrepreneurship, the initiative is breaking new ground and making a bold shift in a space where emotional resilience is often overlooked.
She stresses that entrepreneurs frequently encounter significant pressures, from financial challenges to societal expectations, and when these stresses go unaddressed, they can lead to anxiety, burnout, and ultimately, business failure.
It was noticed through one of their programmes, the Metropolitan's Collective Shapers (MCS), that funding alone is not enough; entrepreneurs also need resilience, emotional support, clarity, and strong financial literacy to succeed.
ALSO READ: 4 business pitch mistakes that could be costing you investors — and how to avoid them
Funding is not everything
Mavundla added that too many programmes assume that if we give entrepreneurs capital, they will thrive.
However, no amount of funding can compensate for burnout and poor financial decision-making under stress or isolation.
Entrepreneurs need programmes that help them build resilience, emotional agility, and long-term strategic clarity.
'The future of entrepreneurship depends not just on bright ideas, but on healthy, resilient minds capable of executing them.'
NOW READ: Report reveals there is no lack of funding for small businesses – here's the problem

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

IOL News

4 hours ago

• IOL News

Are we inviting the World Bank's interference or seeking genuine support?

Later this year the World Bank Group will launch the second pilot edition of its B-READY report, a new benchmark for assessing global business climates. Image: Wikipedia Has the World Bank's flagship business index already been hijacked — from a South African perspective — even before the country's debut in the pilot phase? Money, as Ayn Rand wrote, is the barometer of a society's virtue. In her 1957 novel Atlas Shrugged, Rand observed: 'When you see that trading is done not by consent but by compulsion, when you see that to produce, you need permission from men who produce nothing, when money flows to those dealing in favors rather than goods — when corruption is rewarded and honesty becomes self-sacrifice — you may know your society is doomed.' Nearly seven decades later, her words remain chillingly relevant. Later this year (September–October 2025), the World Bank Group (WBG) will launch the second pilot edition of its Business Ready (B-READY) report, a new benchmark for assessing global business climates. South Africa is set to join the third pilot in 2026, alongside 184 economies, before the project's full rollout in 2027. B-READY, an evolution of the discontinued Doing Business survey, evaluates regulatory frameworks and public services affecting firms. For South Africa, the index focuses on 10 key areas — business entry, utilities, labour, financial services, taxation, dispute resolution, and more — spanning four departments: Employment and Labour; Finance; Small Business Development; and Trade, Industry, and Competition. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The WBG has already critiqued South Africa's 'hard regulations', including BEE policies, local content rules, and collective bargaining, arguing they stifle implementation and breed corruption. A February 2025 WBG report, Driving Inclusive Growth in South Africa, also highlighted weak market competition as a critical flaw. Notably, the report's contributors included prominent South African economists and private-sector representatives — Tania Ajam, Haroon Bhorat, Mcebisi Jonas, and others. While the World Bank is a respected institution, its reports often reflect local biases rather than impartial Washington analysis. South African policymakers are well aware of this — and of attempts to influence policy through institutions and 'experts' of perceived gravitas. B-READY's methodology relies on firm-level surveys and confidential expert input, raising questions about transparency. In a country with low internet penetration and a gatekeeping culture, how representative will these surveys be? The selection process — scouring LinkedIn, conferences, and embassy directories — hardly guarantees objectivity. The Doing Business report's demise in 2020 followed data manipulation scandals involving China, Saudi Arabia, and the UAE. Is South Africa immune to such interference? With competing economic agendas, disjointed governance, and external pressures (including from Trump-aligned figures), the risk of distortion is real. Domestically, the DA is challenging labour laws in court, while AfriForum lobbies foreign governments against B-BBEE. Meanwhile, institutions such as the CIPC, Competition Commission, and SARS — though theoretically capable of enabling business — remain inefficient and disjointed. Consider recent examples: CIPC's mass deregistration of 'non-compliant' companies, under the guise of FATF compliance, ignores South Africa's unemployment crisis. Private-sector exploitation of undocumented workers (Uber, SPAR franchises) flouts labour and tax laws. Tshwane's revenue crackdown exposes rampant illegal utility connections by businesses. Will the World Bank's surveys capture these realities? Or will its findings — like past reports — be skewed by advocacy masquerading as research? A 2005 evaluation of WBG research (led by Nobel laureate Angus Deaton) found that the Bank elevated favourable studies and ignored inconvenient ones, blurring the line between analysis and agenda. South Africa doesn't need external interference — it needs will. Regulatory bodies must function cohesively. Policies should enable, not strangle. And if B-READY is to be Rand's 'noble medium', it must resist becoming another tool of coercion. The question lingers: Is the World Bank's index a genuine reform tool—or a new frontier of influence against South Africa? * Makgwathane Mothapo is a marketing and communications practitioner. ** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media. Get the real story on the go: Follow the Sunday Independent on WhatsApp.

The Star

5 hours ago

• The Star

The state of the adult industry in SA: A market under pressure

I started the Lola Montez Brand over 20 years ago. It was the first of its kind. An adult store that was more boutique than a store that made it safe for women to shop. It was a place where couples could get real advice about their relationship and purchase a range of toys to spice up the bedroom. We went from 1 to 4 stores and back again over the years and recently closed all our bricks and mortar outlets to be online. We still offer the same educated and honest advice. I have wondered for some time now whether it is just me or whether we are all suffering. Yes, there certainly are more players in the market with fierce online competition. If your algorithms aren't perfect, you are nowhere to be found. Don't even think about advertising on social media, you'll be banned faster than you can say Butt Plug. I'm assured it's the same for everyone. The South African adult industry, once dominated by a few brick-and-mortar stores offering high-end, discreet and knowledgeable service, is now navigating choppy waters. A convergence of economic, regulatory, logistical, and digital challenges is threatening the survival of longstanding adult retailers and reshaping the landscape of the industry entirely. The Decline of Physical Retail: A Perfect Storm Retail across all sectors has been under pressure, but adult retail in South Africa faces unique hurdles. High commercial rentals—especially in premium, upmarket areas—have made it nearly impossible for adult stores to compete for desirable locations. Despite a more progressive approach to sexual wellness, adult shops still face stigmas that prevent them from gaining access to malls and retail zones with high foot traffic. Zoning laws and landlord reluctance mean many are forced into industrial areas or low-traffic locations, which impacts visibility and footfall and keeps the industry feeling sleezy. Coupled with rising utilities and security costs due to persistent load shedding and crime, maintaining a physical presence has become financially untenable for many businesses. The shift to online retail, accelerated by COVID-19, has only exacerbated this decline. Regulatory Red Tape and Technical Hurdles Beyond rental issues, South African adult retailers also face harsh regulatory and logistical hurdles The South African National Standards (SANS) require that all rechargeable adult toys—those containing lithium batteries—meet strict safety compliance standards. Importers must register, test, and certify each model, even if it's a variation of an existing design. This costly and time-consuming process significantly delays product launches and adds to overheads. Moreover, lithium batteries are considered dangerous goods for air transport, leading to additional courier fees and complex logistics. These costs are passed on to the consumer, making locally-sourced products far more expensive than the same items bought from international platforms—many of which skip compliance and safety procedures entirely. The Online Competition Conundrum Online giants like Temu, Shein, and Wish have further eroded the profitability of local Players. These platforms offer cheap adult toys, shipped directly from overseas, often without duties being paid or regulatory compliance being met. These products are rarely covered by warranties and come with no after-sales service or consumer protections. Consumers, facing their own financial constraints, are increasingly opting for lower-cost alternatives, despite the risks. The result? Local adult stores can't compete on price and are losing market share rapidly. Reputable South African brands that offered education, discretion, high-quality products, and in-store expertise are being edged out by volume-based, faceless e-commerce operations. The Bigger Picture: Industry at Risk This collision of factors—regulatory barriers, high rentals, unfair import practices, and international competition—is having a significant impact on the adult industry as a whole. Once-thriving businesses are closing their doors, scaling back operations, or being forced to compromise on quality to survive. The broader implications are concerning - fewer safe, informed spaces to explore sexual health and wellness, job losses in an already struggling economy, and a decline in consumer rights and product safety standards. What Can Be Done? If the adult industry in South Africa is to survive and thrive, multi-pronged action is needed: Lobby for Fair Access: Retailers and advocacy groups must lobby municipalities and shopping centres to treat sexual wellness retail like any other health and beauty offering. Education is key to breaking down stigma. Simplify SANS Processes: Regulatory frameworks must be reviewed and streamlined for small businesses. Consideration should be given to exemption categories or partnerships for low-risk devices. Local Manufacturing Incentives: Encouraging local production of adult toys could reduce reliance on expensive imports and create jobs. Government incentives for manufacturing could drive innovation and economic inclusion. Consumer Education: Campaigns must highlight the importance of quality, safety, and after-sales support. Consumers need to understand what they lose when they buy from anonymous overseas platforms. Collective Bargaining and Bulk Shipping: Local retailers could form cooperatives to pool resources for compliance testing and shipping, reducing costs and increasing bargaining power with regulators and couriers. Our wholesalers have entered the retail market making competition even more difficult. Digital Excellence and Hybrid Models: Investing in sleek, educational online stores with excellent service, discreet delivery, and local credibility could win back customers. Hybrid models that blend online with experiential pop-ups or events could also offer a future path. Those who have the capital are trying. Temu is still winning. The adult industry in South Africa is at a crossroads. Without urgent and coordinated efforts to address the unique pressures it faces—from compliance costs to online competition—it risks becoming an underground or entirely imported market, devoid of trusted local brands and service. Preserving the industry isn't just about pleasure products—it's about access to safe, shame-free sexual wellness resources in a country that needs them more than ever.

TimesLIVE

7 hours ago

• TimesLIVE

FAIS ombud upholds complaint against Luvuyo Burial and Consulting

The office of the ombud for financial services providers has issued a determination in favour of Pumelele Mantingani after financial services provider Luvuyo Burial and Consulting failed to honour a funeral policy claim. Luvuyo Burial's failure to honour the claim has also resulted in its licence as a financial services provider being suspended by the Financial Sector Conduct Authority (FSCA). Mantingani, who took out a funeral policy with the company in September 2020, lodged a complaint with the ombud's office on October 28 last year after Luvuyo Burial and Consulting failed to honour a valid claim after the death of her uncle, Mbuyeni Katshi, on July 17 2024. Mantingani submitted her claim on July 27 2024. Luvuyo Burial and Consulting, based in Khayelitsha, Cape Town, acknowledged the claim and committed to payment, but only partially honoured the obligation, paying R5,000 of the R10,000 due. Despite further assurances, the balance remains unpaid. Numerous attempts were made by the ombud to resolve the matter amicably. Though Luvuto Burial undertook on more than one occasion to settle the outstanding balance, it failed to do so. During the investigation, it also came to light that Luvuyo Burial was operating without an underwriter, raising serious concerns regarding its compliance with regulatory requirements. In assessing the evidence, the office found that the policy was valid and that the deceased was listed as an insured life. However, Luvuyo failed to act in accordance with the policyholder protection rules, which require that: 'An insurer must, within two business days after all required documents in respect of a claim under a microinsurance policy or a funeral policy have been received, assess and make a decision whether the claim submitted is valid, and authorise payment of the claim, repudiate the claim or dispute the claim and notify the claimant of the dispute.' The ombud said the company's failure to process the claim appropriately reflected noncompliance with treating customers fairly outcome 6, which states that 'customers do not face unreasonable post-sale barriers when they want to change a product, switch providers, submit a claim or make a complaint'. As a result, the ombud upheld the complaint and ordered that Luvuyo Burial and Consulting pay the complainant the outstanding balance of R5,000 with interest at a rate of 11.25% per annum from the date of the determination until the date of final payment. 'Given the respondent's failure to comply with regulatory requirements, a copy of this determination was referred to the FSCA for its attention and possible enforcement action. 'As a result, the respondent's licence as a financial services provider was suspended by the FSCA on April 14,' the ombud said.