Tap into the ‘next big thing’: the youth of Gauteng

Gauteng’s young entrepreneurs have innovation and drive worth investing in.

With StatsSA reporting that youth unemployment has risen to nearly 5 million, the outlook for South Africa’s youth is indeed a gloomy one. But all is not lost. Tough economic times spur innovation and ambition – something South Africa’s youths have in abundance.

Confronted with a lack of formal jobs, young South Africans are now making their opportunities.
According to the National Youth Development Agency (NYDA) Status of Youth Report 2022, entrepreneurs account for around 12% of youth employment in South Africans aged 15 – 34. Youth-owned enterprises made up nearly 24% of all SMMEs in the country in 2021.

Our young people are ‘hustling’ wherever possible – from selling food and running car washes to textile design and manufacturing, developing mobile apps, and capitalising on online influencer opportunities.

Most of South Africa’s young entrepreneurs tap into local networks for informal support: on just one dedicated Facebook page, over 860,000 ‘kasi hustlers’ share business ideas and advice. Their tendency to crowdsource ideas and engage closely with markets through social media networks lends itself to developing products and services that meet market needs and respond quickly to change as the market evolves. Their innovations are often so unique and tailored to address local needs that they may lend themselves to export to other underdeveloped markets with similar challenges.

Impressively, many of these businesses are built on only the available resources to the entrepreneurs, such as township delivery services using bicycles. One entrepreneur famously started a successful ice cream store in Soweto using his R350 COVID-19 grants.

Another notable business, AUKODesigns, a company founded by Kopano Makino and incubated at the Innovation Hub’s eKasiLab in 2023, is a 3D design service and solution company that specialises in Computer Aided design software, manufacturing technologies product/industrial design research and development in Johannesburg. This business brings dreams and ideas to life through 3D design services, products and education. To date, Auko Design has received technical support and linkages with Seda and NYDA to assist with scaling up its innovation.

In Orange Farm, a youth enterprise, All Day Jam was established in 2019 and incubated at eKasiLab in 2021. The company manufactures plant organic fruits and vegetables and produces jam from harvest. All Day Jam’s purpose is to create fresh, hand-made jams while retaining the highest quality standards. The company aims to infuse every bite of this bespoke product with a re-energising and tranquil feeling. These efforts highlight the spirit that prevails among the youth of Gauteng – they are determined and innovative. They identify gaps in the market and set out to fill them even when the going is tough.

They’re on the right track – tough times can birth big business, and it’s easier to take a chance on launching a business when you have little to lose but everything to gain. A study in the US found that the Great Recession of 2007-2009, which saw over 8 million jobs lost, drove a massive increase in entrepreneurship. This aligns with historical trends: a 2009 Ewing Marion Kauffman Foundation study found that over half of Fortune 500 firms were launched during previous recessions.

Unfortunately, small, medium and micro enterprises (SMMEs) owned by youths in South Africa account for most business closures, with the highest number of closures among the youngest cohorts of entrepreneurs. To us, this indicates that our young people have the creativity, drive and commitment necessary to come up with promising business ideas, but they may lack the experience and resources to make their businesses profitable and take them to the next level of growth.

Bonolo Scent, a pioneering enterprise incubated at eKasiLab in Sebokeng to manufacture eco-friendly laundry detergents, aims to provide effective cleaning solutions while minimising environmental impact to markets across Gauteng. Start-ups such as Bonolo Scent demonstrate that against all odds, with access to markets and funding, young entrepreneurs can shift the dial and contribute to Gauteng’s growth prospects. Gauteng certainly does not lack ideas and innovation; what is needed is investment flows and business guidance for SMMEs, especially those led by the youth.

Gauteng has all the infrastructure and resources youth-owned businesses need to get started, including advanced communications infrastructure, incubation hubs, business networks, a vast market, workshops, and business development events. Gauteng also offers numerous programmes to connect entrepreneurs with investors and mentors.

For prospective investors, Gauteng is a solid environment to identify innovative entrepreneurs and partner with them to create new revenue streams.

The investSA Gauteng One-Stop-Shop is positioned within the Gauteng Growth and Development Agency (GGDA) to provide an integrated service to investors by facilitating the entire value chain. Whether you are a prospective investor looking to invest in Gauteng or to expand your investment in the province investSA Gauteng can guide you through all the stages of your investment journey.