Free State entrepreneur Emmanuel Mothae has a positive story to tell after starting a successful business with the help of a grant from the government.
After being unemployed for six months, three years ago, Mothae decided to put his fate in his own hands and founded Bots Bakery in Botshabelo.
“I was looking for something else to do, and the bakery came into mind. I started doing research on bakeries, the products, and how to do them, and about the equipment. That's when I started applying for funding,” Mothae said in a video interview with IOL this week.
“It was very hard to get the business started because I was not working, and I did not have the capital. So, I approached the National Youth Development Agency (NYDA) and Small Enterprise Finance Agency (SEFA),” he continued.
“These are the people that came through. SEFA bought me equipment, and NYDA bought me the stock and the raw material.”
From there, Mothae was able to get going. Today, he’s grown his business and currently employs 11 people – all under the age of 35 – and has the vision of growing it even more in the future.
“There is always potential to grow, especially for small business in townships. Our biggest problem as small businesses is meeting the capacity. The demand is always high, and at the moment, this is my biggest challenge,” Mothae said.
“I really need more funding, and I’m looking for a strategic partner. If it comes in, a partner of funding, then that will help me expand. I’ve already done an expansion plan, and I just need funding to grow the business.”
South Africa is in a crisis where a lot of people, particularly young people, are struggling to find work. According to Statistics South Africa, the unemployment rate in the third quarter of 2024 was at a staggering 32.1%.
According to Mothae, going into business is something the youth of South Africa should definitely explore, especially when government programmes are in place to offer financial assistance.
“I would definitely encourage young people to apply. There are a lot of government institutions. Even in the private sector, they are there, but they will always want a return on investment. But with government institutions, though they are strict on the return of investment, they are open to funding new ideas,” Mothae said.
And his advice for young people who want to go into business for themselves? Don’t be afraid to start small.
“I would always encourage young people, and even those who are working, I've seen the trend right now, uh, those that will say 'I'm doing a side hustle, side hustle.' So, this is the time for everyone who's looking for an income to go into business,” Mothae said.
“Try to sell something, and don't be afraid to start small. Someone thinks that you have to start with a hundred thousand rand, but you can always start with a thousand rand, and a lot a lot of people have started very small, so start small,” he said.
“At least you learn as you grow, and you don't fall hard if you fall. Business is a way to go, especially for young people. Find something to sell, find something to do. Some of these young people are very creative, so be innovative. Come up with something. You don't have to come up with something that is very new,” said Mothae.
“We live in an age of information, so it's very hard to come up with something that is unique. So, one of the things that we are always saying to encourage others to be entrepreneurs is to be innovative. So, find something that exists and be innovative with it.”
IOL