South Africa’s young entrepreneurs are starting businesses at record levels, not because opportunities abound, but because jobs have vanished. For most, survival drives innovation, but research shows that up to 80% of these ventures collapse within five years.
The crisis is not a shortage of ideas. It is a shortage of sustainability.
Lindiwe Gumede, Chief Marketing Officer at Metropolitan, said the causes of failure are well known but seldom confronted at their core.
“The reasons for such high failure rates are well documented: limited access to finance, weak business networks, poor management skills, and a lack of formal structures. Many young entrepreneurs never move beyond survival mode, and few businesses scale or formalise.”
Gumede argued that funding is often blamed, but the problem runs deeper.
“Access to capital is routinely framed as the primary barrier standing between a struggling founder and a thriving business. In some cases, it is correct, but this has become an understandable assumption. But over the last four years, we've learned something more nuanced: the real challenge isn't just accessing funding. It's becoming fundable in the first place,” she added.
Gumede further shared that many founders approach investors armed with strong ideas but without the structural discipline required to attract serious funding.
She noted that while their concepts may be viable, they often lack the systems, financial controls and operational frameworks that lenders expect. Pricing remains inconsistent, and cash flow management is weak. Personal and business finances are frequently mixed.
According to her, the businesses that ultimately scale are not necessarily those that raise the most money. They are the ones that first position themselves as fundable and then deploy capital with intention.
Four years ago, Metropolitan launched the Collective Shapers programme to tackle precisely these weaknesses. Since 2021, it has supported 70 young entrepreneurs across sectors such as agriculture, logistics and hospitality with structured training, mentorship and financial planning tools aimed at long-term viability.
But the intervention extends beyond balance sheets. Gumede explained that financial behaviour is often shaped long before a company is registered. Entrepreneurs raised in conditions of scarcity may operate from a survival mindset, making it harder to reinvest profits or separate business from personal finances.
“The business suffers not because the entrepreneur lacks intelligence or ambition, but because their nervous system is operating in a mode that wasn't designed for long-term growth. This happens not because we taught them accounting, but because we helped them rewire how they think about money under pressure,” she said.
For many young founders, the stakes are personal. “With limited job opportunities in South Africa, I decided to create jobs rather than wait for one,” said finalist Zwivhuya Mudau.
Support networks are proving just as critical as capital. Charmaine Mhlongo, Head of Brand at Metropolitan, said collaboration often determines whether a business survives its early years.
“All the entrepreneurs in the MCS programme showed us that they were hungry for new opportunities, but they also recognised that going it alone is way more difficult than they ever imagined.”
Aphelele Ndamase, another finalist, agreed: “I have realised the value of surrounding myself with like-minded entrepreneurs. Sharing experiences, learning from others’ successes and challenges, and being open to new ideas has shown me how collaboration, adaptability, and a growth mindset can significantly accelerate progress and impact in business.”
Mhlongo added that long-term success depends on getting the basics right. She maintains that sustainability comes from equipping young entrepreneurs with the skills and knowledge needed to remain competitive, stressing that every enduring business is built on a solid foundation.
In an economy where formal employment remains out of reach for millions, entrepreneurship has become a necessity. But as this new generation of founders is discovering, hustle alone will not secure the future. Survival may start the journey. Structure, discipline and resilience determine who finishes it.
The Star
masabata.mkwananzi@inl.co.za