South Africa’s entrepreneurial spirit is alive, especially among our youth.
From township tech innovators to rural agropreneurs, young people are stepping up to build businesses that solve problems and create jobs.
And yet, despite their creativity and drive, many youth owned businesses collapse within the first two to three years.
The number one culprit? Financial illiteracy.
The Harsh Reality Behind the Numbers
According to the Global Entrepreneurship Monitor, youth entrepreneurs in South Africa face a high failure rate — and while access to funding is often cited, a deeper issue lurks beneath: a lack of foundational financial understanding.
Many brilliant young founders don’t know how to:
- Price their products profitably
- Separate personal and business finances
- Read or use financial statements
- Budget or forecast cash flow
- Navigate tax compliance and business accounting
Without these basics, even the best ideas become financially unsustainable. Passion may get them started, but poor financial management brings them to a halt.
Financial literacy isn’t a luxury, it’s a lifeline
As a Business Accountant and Money Coach, I’ve worked with countless youth entrepreneurs who are hustling hard but bleeding money quietly.
They’re often unaware of what’s truly costing them — because they don’t have the tools to measure, track, or forecast their finances.
Some of the most common pitfalls I see include:
- Over-reliance on informal lending or stokvels with no plan to service debt • Undervaluing their services, leading to unsustainable pricing
- No financial systems or records, making it impossible to scale or secure funding • Late or non-existent tax submissions, putting them at risk with SARS
Financial literacy isn’t about being an accountant — it’s about understanding your money well enough to make informed decisions that sustain and grow your business.
So, What’s the Solution?
We don’t need to wait for schools to overhaul the curriculum.
There are immediate, actionable ways we can shift the tide:
- Incorporate Financial Literacy into All Enterprise Development Programs
No business development intervention should exist without a strong financial training component — not just once-off workshops, but ongoing mentorship and accountability.
2. Use Digital Tools to Demystify the Numbers
With platforms like QuickBooks, Xero, and even simple Excel templates, we can make financial tracking more accessible. Youth should be taught how to read dashboards and track their money in real time.
3. Start with Personal Finance
A financially literate business owner is first a financially responsible individual. Managing personal debt, building savings, and understanding credit are the foundation for strong business money habits.
Create Peer Learning Spaces
Financial literacy improves when it’s made relatable. We need safe, youth-led spaces where entrepreneurs can share mistakes, ask questions, and grow together.
My Call to Action
To funders, incubators, and government agencies: stop handing out funding without embedding financial literacy. You’re setting our youth up to fail.
To youth entrepreneurs: the hustle is noble, but the numbers are non-negotiable. Equip yourself. Ask for help. Learn the language of money — because your idea deserves longevity.
Victoria Elias, BA (SA), Business Accountant and Money Coach.
BUSINESS REPORT
Visit: www.businessreport.co.za
