Mashatile Urges South African Youth: Embrace Entrepreneurship to Thrive!

Potchefstroom, South Africa - As the sun set over Potchefstroom’s North West University’s Rec Farm Stadium, Deputy President Paul Mashatile delivered a passionate address on June 17, 2025, during South Africa’s Youth Day commemoration. Emphasizing the urgency of addressing the alarming rise in youth unemployment, Mashatile laid bare the uncomfortable truth: over 9.2 million young people in South Africa are neither employed, in school, nor undergoing training. This staggering figure, highlighting a youth unemployment rate of 62.4%—the highest in years—demands immediate action and innovative solutions.

Mashatile urged the nation’s youth to take the reins of their future by embracing entrepreneurship rather than waiting for job opportunities that may never come. „We must empower you to become the job creators of tomorrow,“ he proclaimed, aligning this vision with the ideals for which South Africa’s youth fought valiantly in the struggles of 1976. The Deputy President also pointed to the ongoing collaboration with organizations like the Harambee Youth Employment Accelerator as a vital step in tackling youth economic exclusion and fostering an entrepreneurial spirit.

Challenges Facing Young Entrepreneurs

South African youth hoping to enter the entrepreneurial landscape face a tough road. The country’s informal economy is notably small and fragmented, often presenting risky pathways for those just starting out. Many systemic issues hinder their progress, including a regulatory environment fraught with challenges, the legacy of spatial apartheid, rampant crime, and infrastructural inadequacies. These difficulties trap young entrepreneurs in an environment where competition is stifled, leaving them largely confined to low-margin sectors like retail and services.

Despite these obstacles, engaging youth in informal work can significantly improve their chances of transitioning into formal employment. Statistics indicate that informal work increases the likelihood of moving into formal sectors by 5.2 percentage points compared to the unemployed. This illustrates the need for greater support and reduced red tape around informal economy trade to lessen costs and increase access.

Opportunities for Growth

Interestingly, tailored initiatives have shown substantial promise. For instance, organizations like Green Riders are creating structured opportunities for young people in last-mile delivery, providing not only training but also the chance to earn between R7,000 to R12,000 monthly. Other partners, such as Kwanalu and Word of Mouth, are doing their part by equipping young entrepreneurs with the vital skills needed to navigate the market, resulting in over 400 new businesses and significant revenue generation.

The government’s strategy aims to align closely with its 2030 National Development Plan, recognizing that small and medium enterprises (SMEs) are critical for economic transformation. Funds like the Spaza Shop Support Fund and the Youth Challenge Fund have already begun channeling significant financial resources into these budding enterprises. Such backing positions young South Africans to capitalize on emerging markets, particularly in informal settings.

Looking Forward

During a recent meeting with the Harambee Youth Employment Accelerator, Mashatile reiterated the necessity for „mass entrepreneurship,“ underscoring a collective mission to revamp the landscape for young business owners in South Africa. This call to action is not just a political statement; the potential for job creation through entrepreneurship could result in the generation of 450,000 to 900,000 jobs by 2030, which could lower the current youth unemployment rates by 3-6%.

The gears are beginning to turn. The sector is ripe for growth with potential partnerships that promise additional earnings for those willing to take risks. South Africa is on the brink of potentially transforming its youth into the formidable economic drivers of tomorrow, but it requires a joint effort from both the public and private sectors to create a more accessible and friendly environment for budding entrepreneurs.

As Mashatile’s vision gathers momentum, the possibility of a brighter future for South Africa’s youth through entrepreneurship grows more tangible. Indeed, there’s something to be said for taking initiative—it’s a call to arms that could redefine economic opportunities for generations to come.