Internet access is vital
GENERATION ZS ARE KEEN TO START OWN BUSINESSES But digital penetration falls below 30% for poorer South Africans and this disparity must be addressed.
According to the latest research by Statistics South Africa, youth unemployment in the country stands at a disappointing 52.4% for the first quarter of 2018. This number could be lessened if the public and private sectors join forces to build a supportive ecosystem for the younger generation, which statistics show are more open minded to entrepreneurship as a career choice than generations before them.
David Morobe, regional general manager at Business Partners Limited, says that in light of upcoming Youth Day on June 16, entrepreneurship should be better profiled as a career of choice for young South Africans.
He points to research which reveals that 72% of Generation Z (individuals born between 1995 and 2012) aspire towards opening their own business. This is in comparison to the 66% of the Millennial Generation (individuals born between 1980 and 1994).
“As the first batch of Generation Z is now entering the workforce, it is imperative that the challenges be addressed in order to promote this sentiment.”
Morobe highlights President Cyril Ramaphosa’s statement during his inaugural State of the Nation address about South Africa’s economy being sustained by small businesses.
“It is positive the younger generation has entrepreneurial intentions. This is not to say the public and private sector should shirk their responsibility for creating jobs.”
In order to stimulate entrepreneurial activity amongst the youth, Morobe suggests considering the traits of Generation Z, which “is the first generation to not know life without the internet and social media.
“Dubbed digital natives, Generation Z is growing up with a plethora of information readily available and a wealth of instilled technological knowledge.
“With the World Economic Forum reporting that there will be more than 1.5 million new digital jobs globally available by 2020, they are already at an advantage compared to their predecessors.”
He points out, however, that the digital landscape in South Africa is a challenge. The World Wide Worx Internet Access in South Africa 2017 report revealed that income disparity is causing a digital divide.
Even though overall internet penetration is recorded at 40%, South Africans on high income levels have a penetration rate of over 82%, while internet penetration falls below 30% among the lowest earners.
“It is imperative to rectify this disparity,” he says.
Morobe points out two areas that would affect aspiring entrepreneurs of the future:
Education: Online learning can offer a viable solution to the education problem as learners will be able to access courses and textbooks from any location, ultimately minimising the issue of space in schools and universities.
Methods of doing business: The digital world is becoming entrenched in the business world. From e-commerce sites to the use of social media as a tool to market, it is becoming an essential platform.
“It is crucial the public and private sectors band together and invest in the digital infrastructure to create an entrepreneurial ecosystem where Generation Zs can create jobs for themselves and contribute towards minimising youth unemployment in South Africa,” says Morobe.