Barriers to Youth Entrepreneurship Amid South Africa's Unemployment Crisis
South Africa's youth are increasingly turning to entrepreneurship as a means of survival amid a severe unemployment crisis. Recent data from Statistics South Africa indicates that unemployment for those aged 15 to 34 reached 45.8% in the first quarter of 2026, with the rate for those under 24 climbing even higher to 60.1%.
Minister in the Presidency Khumbudzo Ntshavheni recently delivered a blunt message to the country's youth, stating that the government will not create jobs for them. Speaking to Newzroom Afrika, she emphasized that the state's role is to create opportunities for economic growth, while the responsibility for job creation rests on entrepreneurial drive and economic development.
Ntshavheni pointed to Germany as an example where sustainable employment is driven by small, medium, and micro enterprises (SMMEs) rather than the state. While she urged youth to take their economic independence into their own hands, she acknowledged that the government must be pushed harder to provide better financial backing for young entrepreneurs.
For many graduates, the shift toward business is born of desperation. Individuals like Zwavhudi Nengalavhani and Makwana, both holders of degrees in indigenous knowledge systems, have launched ventures such as Ness Handmade Crafts and Phidiso Luxury Gifts after finding that qualifications no longer guarantee employment.
These young entrepreneurs face significant hurdles, including the need to manage finances, find customers, and maintain motivation without a safety net. Experts note that a widening skills mismatch and a lack of practical experience further complicate the transition from education to economic activity.
