As South Africa’s unemployment figures reach 4.7 million in 2026, Business Partners Limited has allocated R150 million to help small businesses employ more young people.
Around 4.7 million people aged between 15 and 34 were unemployed in the first quarter of 2026, according to Statistics South Africa. The SME Youth Jobs Fund is expected to support about 220 SMEs and facilitate nearly 1,000 new jobs for people aged between 18 and 35.
Business Partners Limited provides loan financing ranging from R250 000 to R50 million to business owners who have a viable formal business and require finance for expansion, working capital, equipment, takeovers, property, franchises or management buy-outs.
“South Africa’s youth unemployment challenge requires practical, scalable solutions that create real opportunities for young people to enter the workforce,” said Jeremy Lang, managing director of Business Partners Limited.
The fund comes as many SMEs face the cost of expanding their workforce, while young people continue to struggle to enter the labour market.
Funding to help SMEs hire
The fund will provide qualifying SMEs with between R250,000 and R2 million specifically for labour-related costs linked to newly created jobs.
Lang said SMEs are well placed to help address youth unemployment because they often provide young people with their first workplace experience.
“As one of the primary sources of employment across the country, SMEs are often the first to invest in young talent, provide workplace experience and create opportunities in communities where formal employment prospects may be limited,” he said.
The fund is open to existing Business Partners clients and the wider SME community. Businesses must have at least two years of trading history, be financially viable and solvent when applying, and show a clear plan for creating new jobs.
The funding covers labour-related costs for newly employed young people for up to two years. It is structured as a loan, rather than a grant, with repayment generally spread over up to 60 months. An initial six-month interest-only period is also provided.
Reducing the cost of hiring
Hiring another employee can place a significant financial commitment on a small business. Salaries and other employment costs have to be covered even when the business is still trying to grow its revenue.
The new fund is intended to reduce some of that pressure and give businesses room to expand their workforce.
Lang said the aim is to support businesses that are ready to grow but face barriers when it comes to hiring.
“Through the SME Youth Jobs Fund, we aim to support viable businesses that are ready to grow by reducing the cost barriers associated with hiring, enabling them to bring more young South Africans into the economy,” he said.
Funding will be released in stages rather than as one lump sum. Businesses will need to provide evidence that the new employees have been hired and that the funding is being used for its intended purpose.
The initiative is also expected to broaden access to finance for different types of SMEs, including women-owned businesses.
A test for sustainable job creation
The fund puts SMEs at the centre of an effort to tackle youth unemployment while supporting business growth.
Young South Africans could gain income, workplace experience and skills that may help them access further employment opportunities.
Small businesses could also use the funding to increase their capacity and expand operations without carrying the full initial cost of new salaries alone.
However, the longer-term impact will depend on whether businesses can sustain the jobs after the funded period and continue growing.
Applications are now open through Business Partners’ online SME Youth Jobs Fund application process. Businesses can apply through the Business Partners SME Youth Jobs Fund page, where the qualifying criteria and application requirements are provided.
