Empowering the youth
South Africa’s youth, although having been at the forefront of the political struggle had to, sometimes, sacrifice their education in the process. The government, with organisations working with youth, especially those from disadvantaged backgrounds has come up with fund that promotes entrepreneurship from the youth.

Umsobomvu Youth Fund
The fund provides finance for youth from formerly disadvantaged groups to start their own enterprises.
It also consists of several programs aimed at alleviating unemployment amongst the youth of South Africa.

The fund provides finance for young entrepreneurs to either purchase or start their own businesses (wholly or partially owned). Providing funding from R150 000 up to R2 million it is hoped that it will serve as a catalyst for new entrepreneurs.

Equal opportunities
The fund provides capital equally to both males and females from all of the groups that are deemed to have been “formally disadvantaged”.

The Fund has approved investments in five Small Medium Enterprises, in all, these investments total about R6 million. Financing 250 youth entrepreneurs over a period of five years using the existing funds of R125 000 that have been committed.

Creating jobs
Another R125 million will be raised from foreign donors during the currency of the Fund’s existence and finance another 250 entrepreneurs. This fund is specifically aimed at businesses wishing to invest in a franchise.
It is hoped that each funded project will create an average of 15 jobs, equaling a total of 3750 jobs.

Umsobomvu General Youth Fund
The Fund provides loan and equity financing ranging from R50 000 to R5 million to SME’s operating in all industries except franchising. For example, a person requires finance to start a manufacturing business.
One hundred and eighty SME’s benefiting from funding thus creating 2000 jobs.
The Fund hopes to provide financing to at least 33% of SME’s owned and managed by women.

Growing entrepreneurs
With such projects taking off in South Africa, new group of entrepreneurs will be born. For this country this is a vital step towards getting the black majority to participate in the economy of South Africa.