Assessing the Barriers Faced by Youth-Owned Micro, Small and Medium Enterprises in Johannesburg

Youth entrepreneurship is widely regarded as a key driver of economic growth and a solution to high unemployment rates in Johannesburg and South Africa. This is especially true in urban centers like Johannesburg, where the potential for youth-driven economic activity is particularly significant. However, young entrepreneurs face several barriers that hinder their ability to establish and grow successful businesses. This study explores these barriers, being financial regulatory, education or socio cultural. The research employed a qualitative design, using theoretical interview schedule to gather in-depth insights from a diverse group of young entrepreneurs. This is complemented by snowball sampling technique to extend the reach within the entrepreneurial community and capture a broad spectrum of experiences. Thematic analysis was applied to identify recurring themes in the data, such as financial challenges, regulatory barriers, and educational gaps. Key findings indicate that young entrepreneurs struggle to secure funding due to strict collateral requirements, limited credit history, and a lack of awareness about alternative funding options such as crowdfunding and venture capital. Additionally, complex regulatory frameworks and bureaucratic inefficiencies add to the financial burden and delay the formalisation of youth-owned businesses. Gaps in entrepreneurial education are also evident, as many young entrepreneurs lack practical skills despite having formal education. The study advocates for comprehensive support, including improved access to financial resources, regulatory simplification, enhanced entrepreneurship and improvement in the education system, and cultural shifts that promote entrepreneurship as a viable career path for youth.