South Africa is amongst the countries with the highest youth unemployment rates, with a significant increase in the first quarter of 2017. Unemployment is reported to be 27.7% with about 13% of unemployed South African being youth.
It is important to note that the actual youth unemployment rate is much higher than 13% as this percentage is exclusive of unemployed young people who are actively seeking employment.
The financial crisis, especially in developing countries, results in very minimal job availability, and often young people have to settle for employment in fields they are not interested in.
However, with all the barriers young people face, entrepreneurship offer light at the end of the tunnel.
Youth Entrepreneurship and global domination
Youth have time and plenty of it, to nurture and pursue they passion, goals, and ambitions. The path of entrepreneurship is a “greener” one, it is quite contrary to looking for someone to employ you, and it grants you full control of your career.
Considering Africa holds the highest percentage of youth between the ages of 15 and 24 (40% of world population), the future of entrepreneurship in Africa could become a global game changer for African GDP. Through entrepreneurship, youth will become global economic giants, influence economic structures in countries throughout Africa.
Financing Youth SMEs
Although it is quite tricky for young people to get their foot in their ideal career paths, the widened out financial aid of Small and Medium-sized Enterprises (SME) allows them to action their business ideas.
The global drive for economic recovery has placed a huge focus on supporting SMEs as a vehicle for job creation, economic stability and wealth creation. With globalisation creating internationally dispersed supply chains that benefit from easier and more cost effective logistics, and equally easier and more cost effective communications, ensuring that SMEs make the most of these opportunities is a promising area for policymakers to pursue.
The Association of Chattered Certified Accountants (ACCA) Global Forum for SMEs has been considering issues within SMEs for some time, in February 2014, the forum cited supply chain finance as one of the most promising tools for financing small businesses around the world, and noted the potential for further innovation in the sector.
To view further information on the ACCA Global Forum for SME’s, click on the following link: http://bit.ly/2uFc79l
According to SME’s, the main reasons for business failure are often cash flow related. Businesses of different magnitudes all need financial stability to operate sustainably.
The time is now
There has been a significant rise in the funding marketplace, the platform where willing lenders meet willing borrowers to close funding has been significantly active. With some financiers looking at other options that do not primarily focus on credit conditions only, but consider off-take agreements.
This is a great opportunity for young people to commence and build their own empires, even in economically critical times. However, there still needs to remain a greater focus on building financial capabilities in SMEs.
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