Meghan Moir | People Manager | Retail Capital | mail me |
President Cyril Ramaphosa declared youth unemployment a national priority in his newsletter ahead of Youth Day this year, saying that youth unemployment is a ‘huge mountain to climb’ but that efforts were underway to address the challenge.
This is substantiated by Statistics SA’s release of the unemployment figures for the first quarter of 2022, showing that unemployment is highest among those aged 15 to 24 years at an unacceptable 64%.
Not only is this unsustainable but it represents an existential threat to the country and its economy.
Addressing youth unemployment
The President is right, it is a huge mountain to climb, but it is possible and everyone who can, should be doing everything they can to address youth unemployment.
It’s clear to all of us who have an interest in the economy broadly, and the small and medium enterprise (SME) sector specifically, that small businesses must thrive if we are to see any real dent in the unemployment levels in the country.
It is absolutely crucial that every stakeholder appreciates that one of the keys to reducing youth unemployment is supporting the SME sector. The government’s own national development plan spells this out when it says that 90% of new jobs should be created by the SME sector by 2030.
While there’s much cynicism as to whether this target will be achieved, what can’t be denied is that more needs to be done, and quickly, because without a vibrant SME sector, we have little hope of creating new jobs.
Working with SMEs shines a light on how important the sector is for employment, and youth employment.
SMEs employ the most people, and the positive impact of funding on business growth and thus job creation, can be accelerated further if entrepreneurs adjust their people strategies to put youth front and centre.
The potential
If we look at our organisation, our talent management strategies include considering not only the skills, competencies, and experience of younger candidates, but the future potential we see in them and the value they can add.
We nurture our young talent by taking them on personal growth journeys and are able to harness this untapped potential and accelerate their development within a nurturing, agile, high performing environment.
Many key positions in our organisation are held by young talent. We recognise that this strategy gives us a competitive edge. This is not a box-ticking exercise, it is strategic. The more a business utilises the potential and skills of young people, the more relatable it becomes to young people and their needs.
From a funding perspective, it also means that our team resonates with young entrepreneurs.
So, what can businesses do in their own areas of influence? It starts with empowering young people in business. This doesn’t exclude those with more experience as they provide the much-needed mentorship our youthful talent needs for their development; rather it drives a generational mix where young people’s natural energy and dynamism are harnessed to add value.
For many young people it is becoming increasingly difficult to find traditional employment, and that many of our youth look to start their own business as a means of survival, or to grow their earning potential. This is one way we can address youth unemployment – to shift the efforts of our young people from seeking jobs to creating marketable opportunities for themselves.
Obstacles
Access to working capital is one of the main obstacles South African entrepreneurs of all ages face. This may be a hurdle that hinders a young entrepreneur from looking to start their own business, and this should not be the case.
We back entrepreneurs and offers accessible, flexible, and convenient funding solutions that address barriers to entry and other challenges.
It is crucial for young business leaders to surround themselves with as many people as possible who have been on the same or similar journeys. If you don’t have access to a platform that pools expertise across various fields, then reach out to mentors and take as much positive advice as possible.
It is vital that we all look around our own networks and see where we can lend a hand and leverage off of the resources we have access to, in order to give brave young people the support they need to embrace entrepreneurship, and make a meaningful impact on our economy.
