“7.0% of the adult population in South Africa are engaged in entrepreneurship, while 2.7% already own or manage an established business,” this is according to the 2014 Global Entrepreneurship Monitor (GEM) South Africa Report, which further states that “for every 10 adult males engaged in entrepreneurship there are 8 females.” 

From the report, we also learn that the “typical South African entrepreneur is male, between the ages of 25-44 years of age, lives in an urban area, is involved in the retail and wholesale sector and has a secondary or tertiary level of education.” If we stop and think about it. This is precisely how it is in reality, although some few female entrepreneurs may come to mind.

Based on the report finding, it is safe to say South Africa needs more male and female Millennials (born between the early 1980s and early 2000s) to look into starting businesses. The reason being the biggest challenge facing this age group is finding jobs and/or opportunities, hence the alarming level of youth unemployment.

Education plays a significant role in starting up a new business and millennials, unlike generations before, have more access to it. Moreover, millennials are tech savvy and possess IT skills which are a must have for any business start-up. Currently, 28% of South Africans start businesses because they do not have another option for work - they are known as ‘necessity entrepreneurs.’ 

In this day and age, we need to create more new employers, which in turn, will create more job opportunities for others. The challenge starts post-graduation when the majority of graduates, opt to seek employment, instead of starting a business. Some graduates even settle for career paths different from there field of academic study, while others eventually give up and end up sitting at home. Our society is in dire need of ‘opportunity entrepreneurs’ who can identify an opportunity to start a growing business that will in return create employment for others.

The majority of millennials are risk takers and dream chasers willing to make mistakes and learn from them. A generation that has been constantly overcoming obstacles and has gained tremendous amounts of bravery, boldness and confidence growing-up. This generation is unique and open-minded. It believes in lifelong self-development and growth. A wealth of information is available at the Entrepreneurs Growth Centre (0861 SMEFIN) for this purpose.

Millennials are also entering into what "The Future of Entrepreneurship: Millennials and Boomers Chart the Course for 2020" Report refers to as the traditional “peak age” bracket - around 40 - for entrepreneurship. Millennials are resilient, assertive go-getters and fall into the 35.5% of adults in South Africa who identify good opportunities to start businesses. Whereas, 25.4% of adults would be prevented from doing so from fear of failure.

A prosperous future for millennials in entrepreneurship begins with establishing a locally desirable idea; ensuring it is clear and simple for people to understand; ensuring it is relevant and provides a needed service or product and they identify mentorship from knowledgeable and supportive people. It is of utmost importance to maintain focus on acquiring and maintaining clients by fulfilling on a promise to provide a quality product at a “value proposition.” Following this mantra will allow the entrepreneur to do good for the community in which they operate while doing well (making financial, social and emotional profit) for themselves.

William Jimerson, Group CEO at the Musa Group. Email: This email address is being protected from spambots. You need JavaScript enabled to view it.. You can follow Musa on Twitter: @musacapital1 and William on @WillJimerson. Tel: (011) 771 6300