How to start a business as a young person

In a country with a high rate of youth unemployment, this Youth Month demands more than ceremonial speeches — it calls for action. But amid the economic strain, digital shifts, and a shrinking formal job market, young South Africans are stepping up — not as jobseekers, but as job creators.

It is time young South Africans reimagined their place in the economy. Entrepreneurship is no longer just a buzzword; it is a critical tool for empowerment, income generation, and societal change.

Beyond income, entrepreneurship offers young people the chance to break the cycle of generational poverty. By creating businesses rooted in local needs — from agriculture to artisanal products — young entrepreneurs don’t just uplift themselves; they create jobs, cultivate community wealth, and spark innovation in underdeveloped areas. It becomes a domino effect: one small enterprise can support families, reinvest in local economies, and unlock new pathways for others. In this sense, entrepreneurship is not just about self-employment — it’s a transformative weapon against poverty.

How to start a business as a young person

Step 1: Identify a problem or passion
Every great business starts with a need. What solution can you offer? What excites you? Passion drives persistence.

Step 2: Validate your idea
Ask potential customers: “Would you buy this?” Use polls, surveys, or test prototypes. Social media can help you measure interest cheaply and quickly.

Step 3: Write a business plan
This is your roadmap. Outline your goals, market, competitors, strategy, finances, and operations. The Small Enterprise Development and Finance Agency can assist you with developing a business plan.

Step 4: Register your business
Go to the Companies and Intellectual Property Commission (CIPC) and get your entity formalised. This unlocks access to business support and funding.

Step 5: Register with the South African Revenue Service (SARS)
Once your business is registered with the CIPC, you'll automatically receive an income tax number. Be sure to apply for a Tax Clearance Certificate or Tax PIN — it's often required for funding applications, tenders, and opening business bank accounts.

Step 6: Open a business bank account
This creates financial credibility and keeps your money matters organised. Banks will typically require your company registration documents and Tax PIN.

Step 7: Start lean
Use what you have. Focus on generating revenue before expanding.

Step 8: Use digital marketing
Leverage free platforms like Instagram, TikTok, Facebook, and WhatsApp to promote your brand.

Step 9: Measure, reflect, improve
Track your expenses and income. Gather feedback. Always improve your product or service.

Where to find funding as a young entrepreneur

Access to capital remains a top barrier — but it is not impossible. Consider the following support mechanisms:

• National Youth Development Agency (NYDA) – Offers grants, business mentorship, and development support tailored to youth entrepreneurs – www.nyda.gov.za
• Small Enterprise Development and Finance Agency (SEFDA) – Provides training, finance, and tools to help small businesses grow – www.seda.org.za
• Industrial Development Corporation (IDC) – Funds scalable, youth-owned businesses in sectors like manufacturing, agro-processing, and energy – www.idc.co.za
• The Jobs Fund (National Treasury) – Supports innovative, job-creating youth projects through matched funding – www.jobsfund.org.za
• Technology Innovation Agency (TIA) – Backs science, technology, and innovation-based start-ups with seed funding and commercialisation support – www.tia.org.za
   

Entrepreneurship is not easy. It requires grit, sacrifice, and constant reinvention. But it is one of the few viable paths toward inclusive growth, poverty eradication, and long-term job creation.