Abdullah Mohamud in South Africa
In the heart of Africa’s socio-economic transformation lies a burgeoning movement driven by women and youth: social entrepreneurship. This dynamic sector not only fosters economic growth but also addresses pressing social challenges, particularly in South Africa.
Social entrepreneurship in Africa has emerged as a pivotal force for development. By integrating business acumen with social objectives, entrepreneurs are crafting innovative solutions to issues like poverty, education, and healthcare. Women and youth are at the forefront of this movement, leveraging their unique perspectives to drive change. The Tony Elumelu Foundation underscores this, stating, “Entrepreneurship is the key to unlocking Africa’s potential… young people and women are leading this charge.”
South Africa’s socio-economic landscape presents both challenges and opportunities for social entrepreneurs. The nation grapples with high unemployment rates, especially among the youth, and significant gender disparities in economic participation. However, these challenges have spurred a wave of entrepreneurial initiatives aimed at fostering inclusivity and development.
Women’s participation in South African entrepreneurship has seen a modest uptick. The Global Entrepreneurship Monitor (GEM) reported an increase from 9.5% in 2022 to 13.5% in 2023. Despite this progress, a gender gap persists, with men’s entrepreneurial activity rising from 11.1% to 19.9% in the same period.
A concerning trend is the surge in necessity-driven entrepreneurship among women, escalating from 62% to 91.2%, primarily due to job losses during the COVID-19 lockdowns. This indicates that many women are venturing into entrepreneurship out of necessity rather than opportunity, highlighting the need for supportive policies and resources.
With a youth unemployment rate averaging 52.15% between 2013 and 2018, South Africa faces a pressing need to engage its young population in productive endeavors. Social entrepreneurship offers a viable pathway, providing opportunities for young people to address community challenges while gaining economic independence.
Initiatives Driving Change
Several programs have been instrumental in bolstering women and youth social entrepreneurs in South Africa:
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Harambee Youth Employment Accelerator: Founded in 2011 by Nicola Galombik, Harambee connects employers with first-time job seekers, addressing the mismatch between labor supply and demand. By 2019, it had linked 100,000 young South Africans to employment opportunities.
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Digify Africa: Launched by Livity Africa in partnership with Google, this initiative offers a 10-week digital marketing bootcamp, equipping young South Africans with digital skills crucial for the modern economy.
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Young Women in Business Network (YWBN): Spearheaded by Nthabeleng Likotsi, YWBN aims to economically empower women entrepreneurs and professionals. Notably, it is transitioning from a cooperative bank to a mutual bank, marking a significant milestone in women’s financial inclusion.
Challenges and the Path Forward
Despite these initiatives, women and youth social entrepreneurs face several challenges:
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Access to Finance: Securing funding remains a significant hurdle, with many entrepreneurs lacking the collateral or credit history required by traditional financial institutions.
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Skills Development: While initiatives like Digify Africa address digital skills, there is a broader need for comprehensive training in business management and leadership.
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Market Access: Connecting entrepreneurs to larger markets is essential for scaling their ventures and achieving sustainability.
Addressing these challenges necessitates a collaborative approach involving government, private sector, and civil society. Policies that promote financial inclusion, investment in education and training, and platforms that facilitate market access are crucial.
Women and youth social entrepreneurs are pivotal to Africa’s development trajectory, with South Africa exemplifying both the potential and challenges inherent in this sector. By fostering an enabling environment that addresses financial, educational, and market barriers, South Africa can harness the full potential of its women and youth, driving inclusive and sustainable development.
