The Impacts of Covid-19 on Youth Entrepreneurship in South Africa

Abstract

The COVID-19 pandemic has impacted youth entrepreneurship in countries around the world. Developing countries have been negatively impacted the most due to the challenges confronting low-income countries. The youth in developing countries experience many challenges especially in start-ups and innovative businesses owing to lack of education, skills, funding, infrastructure, and other mechanisms of support.. These challenges therefore pose a significant threat on the youth in these countries in sustaining their new ventures and businesses during and after the crisis. This study focuses on a South African perspective and looks at the impacts of the COVID-19 pandemic on youth entrepreneurship in developing countries in comparison to developed countries. Nothwithstanding these challenges however, there are many opportunities that can be exploited in this crisis through innovative projects. This study was critical due to inadequate research been conducted on the impacts of the pandemic on entrepreneurship and youth entrepreneurship. A library and desk-based research was undertaken due to COVID-19 restrictions and time constraints. An inclusive literature review was done and thereafter findings reflected that the challenges that youth in African countries experience are due to the poor development of youth. Shutdowns of businesses and the protection of the elderly by staying home influenced their businesses. This impacted the youth negatively during the lockdown, but due to their innovative mind-sets, many African youth entrepreneurs utilized the lockdown as an opportunity to repurpose their businesses or embark on new ventures. Recommendations included creation of entrepreneurship hubs, availability of support initiatives, funding opportunities and creation of youth-friendly policies.