Nelson Mandela University research focuses on grant funding towards young South African entrepreneurs

The doctoral research of Nelson Mandela University’s Economics lecturer Asanda Fotoyi focused on the economic impact assessment of the National Youth Development Agency (NYDA)’s grant funding in the Eastern Cape.

“This research is interesting because the NYDA grant funding provides young South African entrepreneurs with an opportunity to access both financial and non-financial business support, says Dr Fotoyi, who graduated at the University’s summer graduation on 12 December. Her supervisor was Professor Ronney Ncwadi.

Her thesis examined the effectiveness of the grant funding against its main objectives namely, improved entrepreneurship participation, business skills development and support, and improved creation of job opportunities.

With a sample of 253 respondents, the study found that public investment towards youth entrepreneurship through the NYDA grant funding was economically viable during the period under review.

The study further found that the development of youth entrepreneurship should go beyond just NYDA grant funding to include favourable policies towards closing gender gaps, supportive education systems as well ensuring diverse economic sectors.

Also, the government should continue with its public investment towards youth entrepreneurship under the conditions of a growing and developing economy.