Inspiring young entrepreneurs in South Africa’s small business sector are overcoming challenges, embracing innovation, and making a positive impact on the economy and society.
Johannesburg, South Africa (02 August 2023) – In the heart of South Africa’s vibrant business landscape, small businesses are making a significant impact. Employing up to 60% of the country’s workforce and contributing 34% of GDP, they form a crucial foundation for economic growth and prosperity.
But what’s truly inspiring is the increasing number of young people joining this entrepreneurial path.
According to data from the Global Entrepreneurship Monitor, early-stage entrepreneurship activity among 18-24-year-olds has skyrocketed from 3.4% in 2002 to an impressive 19.3% in 2021. Similarly, for those aged 25-34, the figure surged from 5.3% in 2001 to 19% in 2021.
One remarkable young entrepreneur, Adam Young, captured the essence of success when he founded ROWDY Bags on the steps of UCT in 2012. This Cape Town-based business quickly blossomed into an award-winning, internationally acclaimed leather goods brand.
“At ROWDY Bags, we are a team of young, passionate individuals committed to the slow fashion movement,” explained Adam Young, co-founder of the brand.
Their vision for a sustainable future in fashion propelled them from a single dreamer to a team of about 20 dedicated employees.
The pandemic threw unforeseen challenges at ROWDY Bags, halting 95% of their direct-to-customer sales during lockdown. With resilience and innovation, they made a strategic pivot, manufacturing cotton face masks, which helped them recover lost sales. This agility and forward-thinking also played a crucial role in ROWDY’s expansion into international markets.
According to Colin Timmis, Country Manager of Xero South Africa, a global small business platform, a robust network, a well-crafted business plan, and a positive attitude towards digital adoption are vital factors in young entrepreneurs’ success. Embracing technology early on and integrating digital tools into their operations can create efficiencies and boost profitability.
“Young entrepreneurs and small business owners are often already digital natives and are leading the way when it comes to embedding technology at an early stage and innovating to do things differently. It’s great to see so many businesses setting an example for those thinking of starting a business. Understanding the importance of digital tools and embedding them from the start will put young entrepreneurs in a strong position to create efficiencies and boost profitability,” said Timmis.
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Radio Stations Unite to Rally Around SA Country Legend Tommy DellHowever, access to funding and support remains a significant obstacle for many young entrepreneurs. Thankfully, financial advisors and accountants can provide valuable guidance and help young business owners tap into various funding opportunities. Xero’s 2023 State of Small Business Report revealed that technology and accountants were the two most critical factors that helped small businesses survive and grow in the past year.
“Professional advice can unlock resources to access funding, mentorship, and training programs aimed at the youth that can propel businesses forward. Our research found that 60% of small businesses believe accountants are key to economic growth. Almost half (49%) go to their accountants for business advice and guidance,” adds Timmis.
“We know that small business owners and entrepreneurs have so many great ideas to grow and innovate, but funding to do this is often the hurdle. That’s why we’ve launched a Beautiful Business Fund to help support small businesses in key areas like tech innovation, sustainability, skills, and supporting their communities.”
Starting a business as a young entrepreneur in South Africa is an opportunity for immense growth and impact. Despite the challenges, adaptability and resilience remain key traits that enable the youth to overcome obstacles and thrive in the dynamic business landscape.
For years, small businesses have played a vital role in stimulating economic growth, empowering families, and addressing unemployment, poverty, and inequality in South Africa. Their indomitable spirit and innovative minds continue to shape a brighter future for the nation.
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