In the first quarter of 2024, unemployment statistics in South Africa indicated that a staggering 46% of people aged 15 to 24 are without work. This is a national crisis, but formal employment is not the only solution. Entrepreneurship is a powerful catalyst for job creation and economic growth. Young people in particular have the potential to build the next generation of SMEs, and the potential to drive economic transformation if their entrepreneurial ambitions are supported by experienced business-development specialists.
Recognising this gap, FNB, in partnership with Fetola, launched the FNB Youth Start-up Accelerator in 2021. The FNB Youth Start-up Accelerator is business development programme delivered in two phases over a 12-month period to provide aspiring entrepreneurs with the practical tools to transform business ideas into viable opportunities and to scale early-stage enterprises into sustainable businesses.
Tailored support to overcome common challenges:
Palesa Moeletsi, SME Business Development Support Manager at FNB, says: “Start-ups have a famously high failure rate. The FNB Youth Start-up Accelerator gives businesses at the beginning of their journey a helping hand, making sure they have the best possible chance of success. The programme forms part of FNB’s broader SME-development pipeline, which provides innovative, proven support to businesses from ideation to scale. Our goal is to help young entrepreneurs build the practical skills they need to build the next generation of unstoppable businesses.”
To reach as many SMEs as possible, the programme is delivered through online platforms, and FNB enables participating SMEs with data connectivity and alternative-energy solutions to participate in the programme, to access tailored training and workshops sessions, mentorship, networking, and other development opportunities that will enable SMEs with the tools, resources, knowledge, and catalytic funding to advance their businesses.
This programme directly addresses the barriers that aspiring entrepreneurs encounter, offering tailored support to help them transform their ideas into sustainable businesses. “We want to inspire our youth to dream of a better future while equipping them with the skills to build South Africa says Moeletsi.
The results of the Youth Start-up Accelerator have shown that with the right support and resources amazing results are possible. The participants in cohort 1 saw:
• 286% combined increase in turnover
• 138% combined increase in profit
• 94% of the entrepreneurs indicated a boost in confidence
• 98% of the cohort rated the overall value of the programme as either good or excellent.
• 100% of the cohort would recommend others to join the programme
Case study: Teboho and Co.
Teboho Ntisa, a participant in the FNB Youth Start-up Accelerator cohort 2, began his business, Teboho and Co., from his home in Soweto. Today he has moved into professional premises and is in the process of hiring his first employee. Teboho won the YSA Ultimate Hustler Award, given to the entrepreneur who has achieved the highest business turnover growth during the programme
“I had no experience of running a business when I began Teboho and Co. I had just finished my degree in Politics and Sociology when I decided to start manufacturing home fragrances and fragrance diffusers. I applied to join the YSA cohort 2 after seeing a post on Instagram, and from the programme I have gained a lot of technical knowledge, but as importantly I grew personally and discovered a level of self-confidence I’d never had. I learnt so much from engaging with other entrepreneurs, evaluating a variety of perspectives, and learning to critically analyse my business and how to improve it.”
Catalytic business support:
The FNB Youth Start-up Accelerator is run in partnership with business growth specialists Fetola, who are known for building impactful businesses. Catherine Wijnberg, Fetola’s CEO, says, “The number of worthy businesses coming out of the programme continues to exceed our expectations. I believe that the success of the Accelerator is largely due to three factors. Firstly, we enrol entrepreneurs who are committed and serious about entrepreneurship. Secondly, the model and methods applied in executing the programmes are proven and go beyond static resources, which are widely available elsewhere. Finally, FNB is an active, engaged, innovative partner that adds tremendous value to the initiative. Their willingness to make catalytic grant funding available through the different phases of the programme has allowed participants who are able to rigorously articulate their vision to test their business models,” and we have seen the difference this opportunity has made to the 200 young entrepreneurs who have already graduated from the programme, and to their families’’.
Applications for cohort 3 of the YSA are now open.
This is your opportunity to access the practical and targeted support you need to turn your business dreams into reality.
If you:
- Are between 18 and 35 years old.
- Run a start-up that has been in operation for less than 6 months, is at least 51% black-owned and has annual turnover not exceeding R1m, or you have a unique idea for a business.
- Display a passion and the resilience needed for business.
- Have a desire to create a profitable and sustainable business (not an NGO); and
- Are not employed full time
Then we encourage you to apply for the FNB Youth Start-up Accelerator Programme. Preference will be given to applicants based in township, peri-urban or rural areas.
Apply now by visiting https://fetola.co.za/programmes/ysa/
Dimpho Masango
Soweto Sunrise News
