The Realities of Being a Gen Z Business Owner: The Wins, the Woes, and What No One Talks About

In today's changing economy, the decision to venture into entrepreneurship is often driven by more than just the allure of profit. For many young South Africans, it's a calling, a deep-rooted passion and a desire to create a space where their ideas can thrive. For others, it's a necessary pivot, a response to the mounting economic pressures and an escape from the relentless game of survival.

Youth unemployment in South Africa for the age group of 18 to 35 (which aligns closely with the 15–34 bracket used by Stats SA), the latest official data from Q1 2025 shows that it is sitting at 46.1%. To the youth, this statistic isn't just a number, it's a looming shadow that creates doubt on their futures and the value of their hard-earned qualifications. It's no wonder that more and more young people are choosing to bet on themselves, using entrepreneurship as a tool to rewrite their narratives.

While some pursue the conventional path of climbing the corporate ladder, others identify gaps in the market and try to bridge them through entrepreneurship. Creating businesses not just for profit, but for purpose. This choice, though empowering, comes with its own set of challenges. From financial constraints to steep learning curves, young entrepreneurs are navigating uncharted waters, building from the ground up with only determination and grit.

Two such trailblazers are Dineo Mogudi and Lerato Mollo, women who chose action over waiting and turned their visions into growing enterprises.

Dineo Mogudi, 26; is the founder of ‘Stitched by Dii’, a fashion-forward clothing brand established in 2021. Her designs are trend-conscious yet versatile, tailored to bring each client’s unique vision to life.

For Dineo, the rewards of entrepreneurship transcend go beyond financial gain. This business owner finds joy in seeing her hard work grow and her creativity recognised, she shares that it gives her a deep sense of fulfilment.

But the road hasn’t been without its bumps. Dineo faces common small business challenges; tight deadlines, undercharging, and inconsistent client communication, especially when it comes to collecting the packages.

"Some clients are amazing to work with, others test your patience," she says. "It all comes down to the people you meet, the lives you touch, and the lessons you learn. It's a bittersweet journey."

Lerato Mollo, 25; launched ‘Champions Afterschool Academy’ in 2021, a tutoring service aimed at primary school learners. The academy supports students with homework, assignments, and project guidance, filling a critical gap in after-school education.

This mindset mentor is filled with pride watching her vision become a reality, however acquiring funding to help her academy grow proves to be a challenge. " Keeping the business afloat without initial funding is tough. You need to prove your business works before you can qualify for financial support."

Lerato's struggle with funding echoes a wider issue among young entrepreneurs: institutions often require evidence of sustained operation before offering assistance, creating a catch-22 for startups.

Still, both women remain undeterred. Their journeys reflect the complex beauty of entrepreneurship, where each setback is a stepping stone, and each success, no matter how small, is a testament to their resilience.

The stories of Dineo and Lerato are more than inspirational, they are a reflection of a generation refusing to be defined by circumstance. In a climate where uncertainty looms large, these women are crafting their futures with vision, tenacity, and unshakable belief. They remind us that the path to success is rarely linear, but always worth walking.