South Africa’s unemployment rate rose to 33,5%, the highest level since 2022 according to Q2 2024 data released by Statistics South Africa. Small and medium-sized enterprises (SMEs), which contribute over a third of the country’s GDP and employ more than half of the workforce, are critical to remedying this. With SMEs facing unprecedented challenges, targeted support is necessary for them to overcome these hurdles and drive economic growth.
David Morobe, Executive General Manager: Impact Investment at Business Partners Limited says that looking at similar economies, our entrepreneurs are facing immense challenges and require assistance in overcoming these barriers to grow and create the jobs so desperately needed by the country.
To this end, the annual Business Partners Limited Entrepreneur of the Year® competition seeks to recognise, reward and empower successful South African SMEs by equipping them with the financial support, mentorship and connections they need to innovate, expand, and generate jobs. “In doing so, we not only stimulate entrepreneurial excellence and inspire others to venture into and succeed in the world of business, but also boost the country’s economy.”
Dual winner of the 2023 Entrepreneur of the Year and Job Creator of the Year awards, Theo Baloyi exemplifies the contribution that entrepreneurs can make to alleviating the country’s high unemployment rate.
Back in 2015, the Bathu Shoes founder and CEO left his well-paying job in the corporate sector to develop an African footwear company that could compete against leading global brands such as Nike and Adidas. Today, his company employs over 400 people and has 37 retail stores across the country.
Baloyi notes that there are many reasons people start businesses. “Mine – like 80,4% of South African entrepreneurs – was to make a difference in the world. My aim was to reignite hope and create sustainable jobs. While I was still in my corporate job, I would come back home to the Alexandra township and would see unemployed youth with no hope just sitting around. I decided to build my business with them and create impact, not just for myself but for my community too. Even if I had only managed to employ three people, I would have achieved my purpose.”
“I’m incredibly proud of our company’s growth and the opportunities it’s provided our employees over the past few years,” he shares. “We’ve seen individuals rise from humble beginnings to leadership positions with casual workers becoming our stores’ regional managers and drivers becoming part of our e-commerce unit. We’ve helped many gain educational qualifications and achieve the financial stability to be able to build their own homes and buy their first car. There are also those who have become role models in their own right.”
“Reigniting hope and creating sustainable jobs has always been the driving force behind my business. So, even on days when I don’t feel like doing certain things, I always think about the responsibility that I carry for the business, for the community and for the country at large,” adds Baloyi.
“Entrepreneurs not only create jobs for themselves but also have the potential to employ others, thereby contributing to a reduction in overall unemployment rates. Each new business venture can lead to the creation of multiple jobs, which is crucial in a context where the economy needs to generate approximately 23,014 jobs per day to accommodate the unemployed population,” concludes Morobe.
Established entrepreneurs are invited to enter the Business Partners Entrepreneur of the Year awards by 31 August 2024.
