Helping South Africa’s hustler generations

Sanlam FCI research highlighted Zennials as the hustler generations. Here’s how to empower them.

South Africa’s Zennials—Gen Z and Millennials (born between 1992-2002)—are leading the way in redefining the job market. Dr Mavis Mazhura, international behavioural science and performance specialist, notes, “We can see from the Sanlam Financial Confidence Index that Zennials are hustling more than any other generation.”

Economic uncertainty, the decline of traditional full-time roles, and a strong entrepreneurial spirit have all contributed to this shift. According to the Sanlam Financial Confidence Index, 14% of Gen Z and 15% of Millennials report very high financial confidence compared to 10% of the total population. This difference is driven by improved Financial Self-Determination and Financial Resilience among these groups. Now, the nation needs to help the hustling generations to grow their financial confidence, so they can play a pivotal role in economic growth.

Adapting to a New Workforce Era and the New Entrepreneurial Spirit
Dr. Mazhura observes that the “job-for-life era” has largely disappeared, with short-term contracts and freelance roles now more common than traditional full-time jobs. Zennials, who grew up with technology, are adept at adapting to this landscape. Known for their resilience and resourcefulness, they blend personal passions with professional pursuits, reshaping South Africa’s workforce by using digital tools to expand their reach, monetise skills, and access global markets. The Sanlam FCI also shows that Zennials have high financial resilience, driven by a strong motivation to continually build and diversify their skills.

Psychologist Sanam Naran adds that Zennials challenge traditional entrepreneurship, embracing creativity and innovation. “They’re curious, adaptable, digitally fluent, and motivated to start their own businesses, often working remotely, setting their own hours, and prioritising rest and self-care.”

Helping the Hustlers of Tomorrow to Generate the Jobs We Need:
SMMEs are the engine room of the economy, possibly employing 90% of the nation’s workforce by 2030. To harness South Africa's demographic dividend for entrepreneurial growth, the nation needs to focus on two primary areas: fostering financial literacy and creating an enabling environment for entrepreneurship.

Financial Literacy for Financial Security
Fostering financial confidence in emerging entrepreneurs is critical. Financial literacy is essential for sustainable entrepreneurship, especially as young people manage multiple income streams. Dr Mazhura says that key principles to master include:

• The Money Cycle: Understanding debt management, income generation, cash flow management, investment, and asset protection. Practical strategies for managing debt, maintaining a healthy credit score, planning for medical coverage, saving for retirement, and building an emergency fund are crucial.
• Tax and Legal Knowledge: Educating young entrepreneurs about tax implications and contract terms protects their income and simplifies filing through effective record-keeping.
• Business and Financial Planning: Skills in budgeting, financial management, and interpreting financial statements are foundational for ensuring business sustainability.

Enabling Conditions for Entrepreneurship
The onus is also on all South Africa’s stakeholders to foster the inclusive, enabling conditions needed for SMMEs to thrive. Creating an ecosystem that nurtures young entrepreneurs can be achieved through the following strategies:

• Access to Funding: Expanding access to financing sources, such as grants and microloans, tailored to young entrepreneurs will enhance financial inclusion.
• Entrepreneurial Education and Training: Integrating entrepreneurship into school and university curricula fosters a business mindset early on, while practical workshops equip young people with essential skills.
• Mentorship and Networking: Opportunities for young entrepreneurs to connect with experienced business leaders through mentorship programmes and networking events foster collaboration and knowledge-sharing.
• Supportive Regulatory Environment: Simplifying business registration processes and offering tax incentives can lower barriers, allowing entrepreneurs to focus on innovation and growth.
• Leveraging Technology: Encouraging digital platforms for marketing and operations can enhance efficiency and expand market reach, supported by tech hubs and incubators.
• Promoting Innovation and Creativity: Hosting innovation challenges and investing in research and development can spur creativity and technological advancement.

How Young Hustlers are Shaping the Work World of the Future:
Dr Mazhura says that as young people increasingly focus on "hustling," the employment landscape will likely evolve significantly. The gig economy is expected to grow, with more remote and flexible work opportunities emerging, while traditional full-time jobs may decline. Technological changes may necessitate a shift from degree-based qualifications to skills-focused competencies, allowing young people to gain diverse skills through various roles.

Moreover, technological advancements will create new job opportunities while automating tasks, leading to increased collaboration between humans and technology. This shift emphasises the need for continuous learning and adaptation to remain competitive in a rapidly changing job market. Sustainability and social responsibility will also become increasingly important, reflecting the values of a socially conscious generation. However, the ‘hustle culture’ can contribute to burnout, making it vital for young entrepreneurs to prioritise mental health and well-being.

The Time for Youth Entrepreneurship is Now
Dr Mazhura underscores the urgency, stating, “With youth unemployment over 45% and early-stage entrepreneurial activity (TEA) declining from 17.5% in 2021 to 11.1% in 2023, empowering financially confident young entrepreneurs is no longer optional—it’s essential.” She emphasises that equipping young South Africans with financial literacy and entrepreneurial skills will enable them to leverage their demographic advantage, adding, “By integrating these strategies, we can harness South Africa’s youth potential to create a dynamic entrepreneurial landscape that drives economic growth and sustainability.”

By prioritising accessible financial education, Sanlam is pressing for optimal outcomes for young people. The group’s north star to empower all Africans to be financially confident has a strong offshoot to upskill SMMEs – the nation’s economic heart.