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Published Online: Nov 1, 2026
Government initiatives to boost youth entrepreneurship and mitigate youth unemployment in Buffalo City, South Africa
Published Online: Nov 1, 2026
Email:
pngculu@wsu.ac.za
Walter Sisulu University, South Africa
Email:
amasha@wsu.ac.za
Walter Sisulu University, South Africa
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Abstract:
South Africa has one of the highest youth unemployment rates in the world, and since 1994 the state has repeatedly presented small-business development as a route out of joblessness for young people. Dedicated agencies, such as the National Youth Development Agency and the Small Enterprise Development Agency, and successive national youth enterprise strategies were created for this purpose. Far less is known about whether this support reaches young entrepreneurs outside the country's main economic centers. This paper examines Buffalo City, a metropolitan municipality in the Eastern Cape, which lies outside the three provinces where most national economic activity is concentrated. Objectives: The study set out to determine whether government-led youth entrepreneurship programs are present in Buffalo City and how their reach is spread across young business owners at different stages of the business life cycle. Methods/Approach: A positivist, quantitative design was followed. Sixty young entrepreneurs running businesses in Buffalo City completed a structured questionnaire and were grouped by period of involvement in their business: less than one year, one year, and two years or more. A chi-square goodness-of-fit test compared this observed distribution with an even spread across the three groups. Results: The distribution differed significantly from an even one (χ² = 30.4, df = 2, p < .001, Cramér's V = 0.50), and the null hypothesis was rejected. Two-thirds of respondents (40 of 60) had been in business for two years or more, whereas only eight had operated for less than one year. Conclusions: Government youth entrepreneurship programs are present in Buffalo City, but the pattern of participation points to support that favors businesses already past the start-up stage, while first-time entrepreneurs remain comparatively scarce. Programs should give greater weight to entry-level support, monitor the share of new entrants among their beneficiaries, and do more to make young people who have not yet started a business aware of the help available.
Keywords:
JEL Classification:
J13, L26, O15, H53
How to cite:
Ngculu, P., & Masha, A. K. (2027). Government initiatives to boost youth entrepreneurship and mitigate youth unemployment in Buffalo City, South Africa. Access to Science, Business, Innovation in Digital Economy, ACCESS Press 8(1), 105-121, https://doi.org/10.46656/access.2027.8.1(6)
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