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  • Business
    From R7 chilled water from a cooler box, entrepreneurs are turning summer heat into a thriving small business hustles.

    Enterprising street vendors turn water into profit

    Small businesses are still feeling the pinch despite recent economic growth, with many consumers sticking to essentials and delaying larger purchases

    SMEs cautious as GDP growth fails to translate into real gains

    Rising pump prices have added new pressure to small businesses that rely on daily transport.

    Fuel price shock forces SMEs to rethink survival strategies

    Siviwe Township Tours opens a window into community, creativity and resilience, giving visitors an authentic sense of place and identity.

    Social media tools give township tourism a boost

    Bus vandalism threatens commuters, operators, and township economies across South Africa. Photo: Facebook

    Transport business sector reels from vandalism of busses

    SMEs say cost pressures are increasing as price hikes become unavoidable. Photo: Facebook

    SMEs brace for tough 2026 amid rising costs

    Local processors say retailers are making more enquiries as import uncertainty grows.

    Poultry farmers get the jitters over US chicken imports

    Poultry SMEs gear up for December demand. Photo: Udemy

    Small scale poultry farmers brace for high festive season demand

    JSE initiative set to unlock funding channels for Limpopo SMEs

    Import dependent SMEs hope RMB payments will reduce delays and exchange rate losses.

    RMB payments set to improve import trade for SMEs

  • Agriculture
    Local processors say retailers are making more enquiries as import uncertainty grows.

    Poultry farmers get the jitters over US chicken imports

    Poultry SMEs gear up for December demand. Photo: Udemy

    Small scale poultry farmers brace for high festive season demand

    Cash flow survival tactics every entrepreneur should know

    Limpopo litchi farmers cash in on the seasonal fruit

    SMEs in the agriculture sector say they are eager to grow their presence in global markets, but producers say they continue to face steep financial and technical barriers that make export participation difficult. Photo. Lucas Ledwaba\Mukurukuru Media

    Small scale farmers face steep barriers in export market

    Mangoe farmers in Limpopo are cashing in on the high demand from the booming atchaar industry. Photo. Facebook

    Mango season drives atchaar trade in Limpopo

    Small scale grain producers are set to benefit from a R23million government cash injection. Photo. CSPI

    R23m cash injection set to boost small-scale grain producers

    Small-scale farmers say limited access to major fresh-produce markets continues to restrict their growth.

    Small farmers struggle to crack the big fresh-produce markets

  • Innovation
    Import dependent SMEs hope RMB payments will reduce delays and exchange rate losses.

    RMB payments set to improve import trade for SMEs

    South Africa’s tourism sector is positioning itself for a more tech-driven future following the launch of a Smart Tourism Visitor Information Centre (VIC) at OR Tambo International Airport.

    ORT airport digital centre gives SMEs exposure

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    South Africa’s small rail engineers target international markets

    SMEs in the Tshwane Metro have been given an opportunity to learn online marketing skills. Graphic. nanos.ai

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    Shesha Energy Drink, made from locally sourced sugarcane, marks a new step toward innovation in South Africa’s agro-processing sector.

    Shesha energy drink refreshes canegrowers’ hopes

    Global information services company Experian is using artificial intelligence (AI) to help scores of South Africans who have lived and worked outside the formal banking system into the network. Photo. Lucas Ledwaba\Mukurukuru Media

    Experian new tools give small business credit access

    The Faraday Taxi Association has introduced a cashless VIP card to help commuters save time

    Taxi VIP card to ease commuter experience

    Young barbers are scaling operations and finding new ways to grow their businesses. Photo. Shutterstock

    Barbers clipping their way into thriving SMEs

    CSIR’s sodium-Ion battery project poised to power SMEs

    Andile Ngcaba, chairman of Solcon Capital.

    Fund set to support township and rural ISPs

  • Finance
    Small businesses are still feeling the pinch despite recent economic growth, with many consumers sticking to essentials and delaying larger purchases

    SMEs cautious as GDP growth fails to translate into real gains

    SMEs say cost pressures are increasing as price hikes become unavoidable. Photo: Facebook

    SMEs brace for tough 2026 amid rising costs

    Import dependent SMEs hope RMB payments will reduce delays and exchange rate losses.

    RMB payments set to improve import trade for SMEs

    Experts agree that global commitments made at the G20 Leaders’ Summit could unlock significant benefits for small businesses

    G20 Summit could unlock significant benefits for SMEs

    The United Kingdom has announced a series of new partnerships and investments aimed at helping small businesses grow, creating jobs, and supporting digital innovation in South Africa.

    UK partnerships to boost SA small businesses

    From left to right: Charles Wyeth, HEINEKEN Beverages; Vignesh Subramani, Absa CIB; Jordi Borrut, HEINEKEN Beverages; Sade Morgan, HEINEKEN Global; Joanna Price, HEINEKEN Global; Stephen Seaka, Absa CIB; Jan de Kock, Absa CIB

    Black-owned SMEs to gain from Absa and Heineken R1.2 billion fund

    African Bank is rolling out a new system to help small suppliers to manage cash flow

    Bank’s new system to help small suppliers manage cash flow

    Minister of Finance Enoch Godongwana delivering his mid term budget. Photo. GCIS

    Medium term budget gives SMEs hope

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    Small business owners say the latest annual report by the Department of Small Business Development under Minister Stella Ndabeni-Abrahams has given them hope

    Annual report shows state funding for entrepreneurs is improving

  • Tourism
    South African and Mozambican flags fly together, reflecting the countries’ renewed commitment to deeper tourism cooperation and regional growth.

    SA – Moz tourism deal to unlock opportunities for SMEs

    Siviwe Township Tours opens a window into community, creativity and resilience, giving visitors an authentic sense of place and identity.

    Social media tools give township tourism a boost

    South Africa’s tourism sector is positioning itself for a more tech-driven future following the launch of a Smart Tourism Visitor Information Centre (VIC) at OR Tambo International Airport.

    ORT airport digital centre gives SMEs exposure

    Shabalala Interpretation of Culture Centre in Mpumalanga is ready to welcome tourists during the festive season.

    Tourism cultural villages spice up services ahead of holidays

    Tourism SMEs across South Africa gearing up for festive season. Photo. www.sowetotowers.co.za

    Tourism SMEs gear up for a demanding festive season

    Medical tourism is on the rise in South Africa.

    SMEs ask for more support as SA’s medical tourism sector grows

    Limpopo province boasts a variety of game lodges and other accommodation facilities to cater for different types of travellers. Photo: Limpopo Tourism Agency

    Tourism SMEs prepare for rapid expansion in Limpopo

    Tomato fields at M.V. Zulu Farming

    Agritourism growth fuels rural economy

    Visitors to the Singo Tented Camp enjoy the experience of spending a night in a tent under the towering baobab trees Photo: Lucas Ledwaba/Mukurukuru Media

    Industry voices call for tourism system reform to empower SMEs

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    Cash flow survival tactics every entrepreneur should know

    On a picturesque farm in Fochville in western Gauteng, André Badenhorst the owner of Animal Farm is taking steps to implement the Protection of Personal Information Act (POPIA). Photo. Animal Farm

    How one farmer applies the POPI Act to protect customer data

    TymeBank introduced ChatSME, a large language model (LLM) targeting South African entrepreneurs.

    Meet the AI tools changing the game for SMEs

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    How new businesses can avoid tax penalties

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National Youth Development strategy nearing completion

The strategy has five key pillars which include economic transformation

by Staff Reporter
June 10, 2021
in Business
Reading Time: 5 mins read
A A
Small businesses to benefit from Informal Trade Policy

Small businesses to benefit from Informal Trade Policy

The Integrated Youth Development Strategy (IYDS), which includes transforming the economy to support young entrepreneurs and create jobs, is in its final drafting process before heading to Cabinet for approval. The document, which was presented to a Parliamentary portfolio committee earlier in June, which is Youth Month, offers some valuable insights following wide-ranging consultations by the National Youth Development Agency (NYDA).

According to NYDA CEO Waseem Carrim, the strategy has five key pillars which include economic transformation, education and skills development, health, social cohesion and an effective youth development machinery. It feeds into the National Youth Policy 2030, which was recently approved by Cabinet.

While there were concerns from members of the Portfolio Committee on Women, Youth and Persons with Disabilities that the latest IYDA report needed more information from youth in rural areas and special needs schools, Carrim said the general consensus was that the youth believed that one of significant barriers to equality was access to data.

“South Africa has some of the highest data costs on the continent. When asked, young people told us because of limited cash they opt to purchase smaller data bundles more often, even if the price per unit is higher than a bulk data bundle purchase,” the latest IYDS draft report reads.

On average, young people said they spent R360 per month on data (with some as much as R1800) for job searches, online applications, social media, research and academic work. And 63% of the respondents did not earn an income. “By lowering, or even removing data costs, young people are more readily able to access information, seek learning and job opportunities and engage with others,” it says.

“We saw that when we changed our mobi-sites to become data free young people’s online behaviour changed from logging in after midnight every evening when data was cheapest, to more even traffic during the day. Affordable data allows young people to be productive during daytime hours, with additive psychosocial benefits as well as giving them access to online communities amidst physical distancing,” the document reads.

Entrepreneurship

The data reveals that youth participation in entrepreneurship is relatively small. Only 9.2% of South Africans aged between 25 and 34 are involved in entrepreneurial activities, which is less than half of the average in Africa. Also, men are more likely to be entrepreneurs than women in this age group.

“South African township youth are not responding to the full potential of business opportunities in their own communities. Proportionally, immigrants have responded more effectively to employment and business,” the report reads. “Most youth will need to find employment in the informal sector. Yet data on labour force participation indicates that youth are not widely active in self-employed activities or informally employed in micro-enterprises.”

In two townships where the research was conducted, 15% of micro-enterprises were run by people under 30, and a third of them were not South African. In Delft in Cape Town, four out of 10 hair salons and barbers were owned by young people, and 70% were owned by foreign entrepreneurs.

The research says the lifestyle and leisure sectors contain some of the most promising youth startups for South Africans, including internet cafés, producing music at home, and playing at taverns and shebeens. They are also involved in designing flyers and posters, operating gyms, designing and making clothes, and running takeaway shops that sell fast food to late-night revellers.

Formal vs Informal Sector

In the formal sector, the report says that while it is a critical engine for productivity and growth, it cannot provide all the answers to growing jobless numbers. “It will be as critical to keep the formal sector afloat, as it will be to innovate on ideas to support and sustain the informal sector.”

Of the roughly 1.8 million informal SMEs, just less than one-third are led by youth, and slightly more than a third are headed by women. The most common informal sector occupations for men are taxi drivers and motor vehicle mechanics, and for women, they are beauticians and street food vendors.

Another key hindrance is that youngsters, especially those from disadvantaged backgrounds, struggle to help create jobs and that many townships are far from economic nodes. The report says a typical starting point for local economic development is for entry-level entrepreneurs to produce basic goods commonly needed locally, scale-up and access new markets.

“In South Africa, however, local markets for basic consumer goods are typically already taken by large incumbents and it is hard for small-scale startups to compete in relation to the established, mass-produced brands,” the document reads.

It warns that while policy hopes are pinned on small enterprises creating jobs, in the formal sector the country is far from reaching targets. “Therefore, while formal SMEs contribute nearly 98.5% of the number of formal firms in the economy, they only account for 28% of the jobs. Based on international trends, this should be about 60 to 70%,” the NYDA says.

Other reasons for unemployment included nepotism, internships that often do not consider the area in which a person is qualified, and poverty – especially amongst those living in rural areas – who do not have access to facilities, amenities, resources, transport and Wi-Fi.

“Poverty is one consequence of unemployment that most youth find themselves facing and as a result resort to crime,” it warns. Respondents said technical schools needed to be established again to accommodate those who excelled in artisan skills.

Before going to Cabinet, the strategy must be approved by the Minister in the Presidency Responsible for Women, Youth and Persons with Disabilities.

Tags: NYDA and cabinetNYDA and entrepreneursNYDA and job creation
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