Youth Businesses Gets Govt/LEA Boost
Kaone Maje | Monday December 3, 2018 14:30
The two entities signed a Memorandum of Understanding last whose ultimate goal is higher survival rates among youth start-ups, particularly those funded through the Youth Development Fund (YDF).
Established by government in 2009, the YDF aims to encourage out-of-school, marginalised and unemployed youth to venture into sustainable and viable income generating projects. The Fund offers successful applicants up to P100,000 comprising both a grant and an interest free loan.
However the Fund has been plagued over the years by high non-repayments and defaults as businesses established have performed poorly and failed.
The Ministry’s deputy permanent secretary, Kgopotso Ramoroka said that it was very unfortunate that young entrepreneurs often failed to pay their loans as they lacked the skills and passion to drive their businesses to success.
“Offering training and mentorship to young entrepreneurs is a requirement that the MoU will address,” he said. The ministry’s permanent secretary, Kago Ramokate said the partnership with LEA was one of the various efforts government was making to partner with entities to support YDF-funded businesses.
“LEA allows entrepreneurs to use their incubation centres to conduct business and that helps in the sustaining of youth businesses,” Ramokate said.
“We know and accept that we have always struggled in areas concerned with training and mentoring the youth and the understanding between our two organisations will address that.” For his part, LEA CEO, Racious Moatshe said mentoring youth businesses would help instill the entrepreneurial skills required to build sustainable entities.
He said the country’s annual import bill, which runs into billions of Pula, could be reduced through successful youth enterprises. “This is more to deal with one of the three apexes of the Ministry of Investment, Trade and Industry, which is the development of Small, Medium and Micro Enterprises,” he said.LEA and the Youth Ministry’s partnership will also address sharing of research and information for the success of youth businesses.