Luluto Mgweba is a PhD candidate in Public and Development Management at the School of Public Leadership at Stellenbosch University.
Luluto Mgweba
Each year in June, we celebrate Youth Month in South Africa to honour the youth of 1976, who stood against injustice and helped shape the nation’s democratic future. Sadly, many of our young people today continue to face high unemployment. The youth unemployment rate is 54.65%, according to the Quarterly Labour Force Survey. While the labour market cannot accommodate many of the unemployed youth, entrepreneurship offers an alternative to traditional employment.
Municipalities have an important role to play in this regard. They must implement innovative initiatives, such as entrepreneurship hubs, to help local businesses grow. Municipalities have a responsibility to promote local economic development and create conditions for employment and enterprise development within their communities. Entrepreneurship hubs offer important services, such as mentorship, investment, training and company infrastructure. They are recognised as catalysts for business development and for creating an enabling environment in which young entrepreneurs can turn their ideas into profitable businesses. Entrepreneurship hubs increase the survival rate of start-ups, boost innovation and create job opportunities. Start-up survival also depends on post-incubation support, governance systems, resource availability and institutional collaboration.
