‘Different this time’: New youth fund for business start-ups - TimesLIVE

A new partnership between the National Youth Development Agency (NYDA) and the National Empowerment Fund (NEF) is aimed at helping young South Africans access funding and the practical support they need to grow their businesses.

The two organisations had a signing agreement for the National Youth Fund at the NYDA’s head office in Sunninghill, Johannesburg, on Monday.

The funds will support youth-owned businesses in sectors with the potential to create jobs and grow.

According to NYDA CEO Ndumiso Kubheka, the initiative is about more than making funding available.

“Today is not simply about announcing a new fund. It is about demonstrating government institutions can work together to remove barriers that continue to prevent many young people from accessing finance, entering new markets, growing sustainable businesses and, of course, creating jobs,” he said.

The partnership will bring together funding, enterprise development, mentorship, market access and business development support.

The unofficial unemployment rate is 33.6%. Among young people aged 15 and 34 it stands at 47.4%. It’s embarrassing. Almost half of young people participating in the labour market are unemployed

“Through the collaboration the NEF and NYDA are bringing together funding, enterprise development, mentorship, market access support and business development interventions to ensure young entrepreneurs receive not only capital, but the support required to build successful and sustainable enterprises.”

NEF board member Mohammed Bhabha said the partnership was also an attempt to deal with the way government institutions often work separately.

“As government, as institutions, we work in silos, and we sometimes don’t get the bang for our buck,” he said.

He said signing the agreement was only the beginning: “The more we execute on these memorandums of understanding, the bigger the bang for the buck. Beyond this ceremony there’s a lot of work that lies ahead.”

He highlighted the country’s high unemployment rate, particularly among young people.

“The unofficial unemployment rate is 33.6%. Among young people aged 15 and 34 it stands at 47.4%. It’s embarrassing. Almost half of young people participating in the labour market are unemployed,” he said.

“Unemployment cannot be addressed through skills development alone. The economy must create opportunities for those skills to be used.”

He said young entrepreneurs also faced barriers such as a lack of resources and difficulty accessing markets.

Bhabha said the NYDA brought experience in youth enterprise development, grant funding, training, mentorship and market links, while the NEF brought financing, investment assessment and ongoing business support.

“For the entrepreneur, these services need to work together,” he said. “It’s not just about money. It’s not just about the environment. It’s also assisting people and creating an enabling environment to do so.”

Bhabha pointed to programmes already supported by the NEF as examples of how funding, training and employment opportunities could be linked.

The East Cape Academy Partnership supported 50 beneficiaries in the painting artisan trade over six months. Rising transport and living costs later resulted in their monthly stipends being increased from R2,500 to R3,000. Some beneficiaries have since found permanent employment, while others have moved into self-employment.

The Altitude Group Contact Centre Programme gave 50 young people practical experience in communication and customer service.

Bhabha said training had to be linked to real opportunities.

“We can’t train people so they are unemployed. We train them and have an unemployed trained person and the frustration grows because what did they study for? That absorption is crucial,” he said.

Through the City of Johannesburg Ways to Work Programme, 210 beneficiaries received support through accredited skills development, workplace learning and enterprise development.

Bhabha said the institutions would also need to track what happened after funding and training had been provided. “We need to understand whether supported businesses are trading, reaching customers, retaining employees and meeting their obligations.”

He said entrepreneurs should have a say in assessing whether government support was working. “We must also listen to entrepreneurs. Their experience of accessing support is an important part of assessing how well our institutions are working.”

Bhabha said the ultimate goal was to help more young people build sustainable businesses and create jobs for others. “We want them to be captains of industry. We start small. It’s nice to have a job, but it’s different to be captains of industry.”