Youth unemployment in South Africa is at concerning levels, with the latest Quarterly Labour Force Survey by Stats SA revealing that the youth unemployment rate has risen to 46,1% in 2025. That’s about 4,8 million young people without work, similiar to the previous quarter.
Author: Jeremy Lang
But in this bleak environment, small and medium enterprises (SMEs) remain a beacon of hope, not only as potential employers, but as launchpads for the country’s next generation of entrepreneurs. As we look for solutions to this, it’s worth considering how small businesses can support young business owners, and how intergenerational collaboration can drive both innovation and resilience.
Small businesses that intentionally create space for younger voices and ideas are often the ones that remain most adaptable in the face of change. When younger and older generations work together, they can combine the best of both worlds: deep operational experience and fresh thinking.
In my years at Business Partners Limited, I have witnessed the value of these partnerships first-hand. Older entrepreneurs often bring business acumen, customer insights, financial discipline and a long-term perspective. Younger entrepreneurs bring innovation, agility, and the ability to quickly test and scale new ideas – particularly in areas like e-commerce, social media, technology and green business.
This type of collaboration doesn’t require a formal partnership. It could be as simple as a business owner inviting a younger team member to contribute to strategy sessions, or providing informal mentoring to an emerging founder in their network. The point is to build bridges between generations and not assume that age automatically equals competence or relevance.
Here are five ways that SMEs can play a more active role in supporting youth-owned businesses and driving inclusive innovation:
- Create mentorship opportunities
One of the biggest gaps facing young entrepreneurs is the lack of experienced, trustworthy mentors. Business owners can share practical advice, offer feedback on business plans, or simply act as a sounding board. Even an hour a month can make a difference.
- Buy from youth-owned businesses
If you’re in a position to influence procurement, consider where your business sources goods or services. Supporting a youth-owned supplier, even for a small contract, can help build their credibility and financial track record, which in turn can open the door to funding or larger customers.
- Collaborate on projects
Joint ventures between established and emerging businesses are becoming more common – especially in sectors like IT, marketing and creative services. Look for opportunities to work with youth-owned businesses in ways that are mutually beneficial, not charitable.
- Invest in skills development
Even if you can’t afford to hire full-time staff, consider offering internships, learnerships or paid project work to young people. Exposure to real business environments builds confidence and capability – and you may end up discovering your next star employee or partner.
- Champion youth innovation
Use your platform, however small, to amplify the work of young entrepreneurs in your community. Whether through referrals, social media shout-outs or invitations to events, visibility is often half the battle for an emerging business.
Many may view youth support as a one-sided initiative, but intergenerational collaboration benefits everyone. Younger entrepreneurs can gain guidance and resources, while older entrepreneurs stay relevant and gain access to new markets and technologies. The broader economy benefits from faster innovation, better job creation and a more diverse SME sector.
Given the scale of youth unemployment, South Africa cannot rely on traditional employment pathways alone. Entrepreneurship must be part of the solution. And this is something all of us – especially small business owners – can influence. The power of South Africa’s economic renewal lies not in one generation, but in their ability to work together.
