‘Government initiatives alone can’t address SA’s unemployment rate’

The battle for South Africans to look for different ways to fight the high rate of youth unemployment continues.

FNB says government initiatives alone cannot address the high rate of unemployment in the country. Therefore, there needs to be bold initiatives from the private sector to help.

SME (small and medium-sized enterprises) Development Head at FNB, Heather Lowe, is of the view that the private sector does have the necessary will in place to help with unemployment, however, job creation is not usually a core competency.

“That is why partnerships between the private sector and quality business growth agencies with proven expertise can make a difference,” adds Lowe.

Ways to tackle unemployment

Catherine Wijnberg, founder and group CEO at Fetola says there are multiple reasons that can limit job creation such as lack of economic growth, and lack of preparedness youth have for employment and entrepreneurship.

She views entrepreneurship as one of the solutions to youth unemployment. At the age of 28, it is advisable for aspiring entrepreneurs to have work experience, networks, and exposure to the world of business.

To address youth unemployment, there would need to be programs to unlock economic growth and effective small business development solutions. “Solutions such as business accelerators would empower the youth to create their own opportunities,” adds Wijnberg.

She is of the view partnerships between the private sector and small business accelerators are key to building businesses that thrive. Partnerships between the two can create long-term beneficial societal impact and inclusive economic growth.

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Benefits of education and entrepreneurship

“Entrepreneurship success rates also increase with post-matric education, which encourages advanced thinking, organisational skills and inner resilience, or grit.”

“As work experience and higher education are both highly beneficial for successful entrepreneurship, how best can we enable this?”

Wijnberg says young people with work experience and education usually have the insight needed to identify a market for their business and the confidence to launch it. She believes it is important to understand how to optimise the necessary foundations to successfully launch thriving Small, Medium and Micro Enterprises (SMMEs).

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