Entrepreneurial skills development must drive job creation for SA youth
By Yershen Pillay
Empowering youth to become successful entrepreneurs delivers a multiplier effect, sustainable SMMEs create jobs for other unemployed youth, contribute to economic growth, and boost efforts by the Chemical Industries Education and Training Authority (CHIETA) to reinvest in skills development through levy funding.
CHIETA’s experience has reinforced the belief that entrepreneurship is one of the most powerful tools for driving job creation among our nation’s youth.
To this end, CHIETA has invested R30 Million in Small Business Growth.
CHIETA has also partnered with 200 cooperatives, including African Alabaster, a beauty products manufacturer in the King Cetshwayo District in northern KZN, to train local aspiring entrepreneurs in soap and beauty product making, especially targeting women and youth.
Some candidates are suppliers for local B&Bs and intend supplying national chain stores.
There is high demand for this training programme as it addresses the bridge between poverty and unemployment, not forgetting the possibility of job creation opportunities.
Another project CHIETA has driven is the Smart Food Card programme, which has been rolled out successfully in various communities.
For example, Nare Noko Buthane, a resident from Hospital View in Tembisa who has been unemployed for about 10 years, started a catering business with resident Lorraine Ribisi in Tembisa.
Many lives have been changed through this initiative.
According to Stats SA, South Africa’s youth unemployment rate remained alarmingly high, at 45.5% in the third quarter of 2023, so urgent and decisive interventions are needed.
While there is no single solution to this crisis, one fundamental pillar must be comprehensive skills development for aspiring young entrepreneurs. We need a structured and well supported approach to nurturing business skills, providing access to capital, and ensuring market linkages for youth-driven enterprises.
Bridging the Gap Between Aspiration and Reality
The OECD (Organisation for Economic Cooperation and Development) has highlighted the global disconnect between young people’s entrepreneurial aspirations and their actual participation in business ownership. According to the OECD, while 45% of young people express a preference for entrepreneurship over employment, only 8% of those aged 18-30 are actively managing a business.
This untapped entrepreneurial potential is a challenge CHIETA is addressing through Vision 2025, a strategy to support 2,000 SMMEs and 200 start-ups by 2025 through skills development, funding, and business incubation.
By 2023, CHIETA had already supported over 1,000 entrepreneurs, providing them with the skills and resources necessary for business success. Our strategy ensures that we are not just training job seekers but producing job creators who will contribute to a thriving economy.
Expanding CHIETA’s Entrepreneurial Support in 2024 and Beyond
CHIETA has significantly expanded its entrepreneurial support programmes in 2024, with several new initiatives designed to foster business sustainability, digital innovation, and green economy growth.
1. Green Economy and Sustainability Entrepreneurship Programme
With South Africa’s focus on clean energy and sustainability, CHIETA is supporting entrepreneurs in green hydrogen, waste management, and renewable energy sectors.
This includes:
- Funding for green startups in the chemical and renewable energy sectors.
- Skills development in sustainability and green hydrogen technologies.
- Market access support through industry partnerships.
2. Smart Skills Centres for Digital Entrepreneurs
In line with the Fourth Industrial Revolution (4IR), CHIETA has launched Smart Skills Centres, offering:
- Training in AI, automation, and digital business management.
- Hands-on experience with robotics, smart manufacturing, and data analytics.
- Support for SMMEs to integrate digital solutions into their business models.
3. Funding and Mentorship for Entrepreneurs Over 40
Recognizing the barriers faced by mid-career entrepreneurs, CHIETA now offers:
- Seed funding for experienced professionals transitioning into business ownership.
- Business mentorship to ensure sustainable growth.
4. Student Debt Relief for Entrepreneurs
One of the biggest obstacles young entrepreneurs face is student debt, which limits their ability to invest in their businesses. CHIETA is now:
- Providing financial relief to graduates who are launching startups.
- Offering business mentorship and financial planning training.
5. Support for Retrenched Workers
In response to rising job losses, CHIETA is helping retrenched workers transition into self employment through:
- Entrepreneurship training and reskilling initiatives.
- Funding to start small businesses in key industries.
For the 2024-2025 financial year, CHIETA has allocated R30 million to support SMMEs through entrepreneurial training, business incubation, learnerships, bursaries, and funding programmes.
This investment will help offset the non-entrepreneurial culture in South Africa and instil a strong business mindset among youth.
CHIETA’s efforts are not just about funding but about creating a lasting impact. An impact study in 2023 showed that 80% of SMMEs supported by CHIETA reported business growth, with over 1,200 jobs created within the past three years.
A Collective Effort for South Africa’s Economic Growth
While CHIETA remains focused on supporting entrepreneurs in the chemical and manufacturing sectors, the call to action extends to all industries. South Africa’s economic future depends on fostering a robust entrepreneurial ecosystem that promotes innovation, competition, and inclusive growth.
As we move into Youth Month, we must commit to building a powerful generation of young entrepreneurs who can drive economic transformation. The youth are not just job seekers; they must be empowered to become job creators.
“The youth need to be enabled to become job generators from job seekers.” – APJ Abdul Kalam.
CHIETA’s initiatives offer hope that investment in entrepreneurship can bring tangible rewards.
Yershen Pillay is CEO of the Chemical Industries Education and Training Authority (CHIETA).
BUSINESS REPORT