Youth business fund: How much has government given to entrepreneurs?

Millions in funding have been given to young businesspeople across the country in the last three years.

Through grants, loans and investment support, the Department of Small Business Development (DSBD) has sought to aid entrepreneurs via the Youth Challenge Fund (YCF).

However, of the thousands of applications received since its inception, the department has approved less than 3% of applicants.

Youth Challenge Fund

The YCF was launched in December 2021 and is targeted at businessmen and women aged between 18 and 35.

Applicants looking for funding are approved based on the quality of their business plans and their direct involvement in the enterprise, which also needs to be 100% South African-owned.

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In a written response to a parliamentary question, the department revealed that it had received 3 437 applications between 2021 and February 2025, but only 90 had been approved.

“More than 2094 applications have been rejected, declined or closed. The remaining applications are still being processed and reviewed,” the department clarified.

Through those 90 approved applications, however, the department has approved R192 million across all provinces, with R274 million available for the programme as a whole.

Presidential initiative

The YCF was launched as part of President Cyril Ramaphosa’s 2021 plan to create 15 000 youth-owned startups within three years.

Enterprises prioritised include information technology, manufacturing, agri-business and retail, among others.

Funding is a blended mix of grants and loans determined by the relevant industry, and covers between 30% and 70% of the business’s budget.

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So far, R47.3 million has been given to female-owned businesses, while male-run enterprises have received R144.7 million.

R64 million has gone to businesses in Gauteng, with the Northern Cape receiving the second-highest allocation with R26 million.

Entrepreneurs in the Western Cape, KwaZulu-Natal, Mpumalanga, Limpopo and North-West all received between R14 million and R18 million, respectively.

No debt or gambling

Gambling operations, multi-level marketing schemes, loan services and similar operations are not eligible for assistance and no funding is permitted to be used to pay debts to a third party.

Compiling a strong business plan is key to receiving support, with SME South Africa outlining the 10 aspects of a good business plan.

Business plans must begin with an executive summary and include an overview of the business, how it fits into the current market and a risk analysis, among other important points.

In defining the YCF’s aims, DSBD concluded, “To support entrepreneurs with any required adjustments to their business model, improving the viability and competitiveness of registered youth enterprises.”

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