What are SA’s next generation business leaders doing?We caught up with some of this year’s Top 16 Youth-Owned Brands Awards winners to learn how they’re making it in a tough economy.ARTICLE BY Fiona Zerbst | DATE: 9 August 2023 | READ TIME: 4 MIN

Young people in South Africa face many challenges, from unemployment (which reached 39.9% in the 25 to 34 age group in 2022) to a weak economy, low levels of literacy and an inability to access opportunities.

To make matters worse, they are often accused of being unfocused and unambitious. However, SA’s younger generations are facing challenges their parents didn’t – from the climate emergency and digital disruption to a lack of social and financial stability.

To prove that young people are made of sterner stuff than we imagine, Pat Mahlangu, the Founder and Chief Executive of Pat on Brands and Lerato Agency, established the prestigious Top 16 Youth-Owned Brands Awards (Top16YOBA) in 2022.

These awards showcase the extraordinary brands that entrepreneurs under the age of 35 have created.

“In setting up the awards, we wanted to shine a light on youth excellence, especially since the media often portrays young people as apathetic and entitled,” says Pat.

“We came up with 16 awards to highlight the economic struggle of the youth today, who are fighting a different but equally vital battle as the youngsters who marched for freedom on 16 June 1976.”

Standout brands

The inaugural awards, held in 2022, saw 484 brands enter – but this year, there were more than 2 500 entrants, says Pat.

Small businesses had to be viable commercial ventures operating for a year or more to qualify. The prizes included R10 000, the chance to study at the Wits Business School and mentorship opportunities.

Pat emphasises that the awards are for brands, not for specific individuals. However, some savvy influencers sit behind many brands that are already household names, such as The Lazy Makoti and Legends Barbershop.

“We wanted to focus on the horse, not the jockey – in other words, the incredible brands these young people have built,” says Pat.

The winners are high-flyers who have established an emotional connection with their audience through social media. “What was interesting, however, was that some of the founders said they’d started a business but ended up creating a brand, which hadn’t been their intention at the outset,” he comments.

Mogopodi Adventures

For Rustenburg-based Katlego Mogopodi, winning an award in the Travel and Tourism category of Top16YOBA was a dream come true.

“I used to love travelling with my dad before he passed away in 2014,” says Katlego, who launched Mogopodi Adventures in 2020 and registered it as a business in 2021.

Although Katlego was studying electrical engineering when the Covid-19 pandemic hit, he quickly realised that many travel and tourism companies were struggling – and he felt this might create a gap in the market for a niche operator.

His first customers were his fellow university students, and he now customises individual and group packages for leisure and business travellers.

Katlego says he was shocked to hear he had won. “I didn’t expect it,” he says, adding that winning has opened many doors, including enrolment in Zimele, Anglo-American’s enterprise development programme, which supports SMEs.

“Young people are future leaders – the next generation depends on our companies, so they must be sustainable. We need to create jobs – and potentially reach international markets,” he enthuses.

ZA Powerhouse, changing the face of the NPO and Charities category

Zanele Phakathi, who was born and bred in Soweto, was crowned Miss Dobsonville when she was 13 and fell in love with beauty pageants. She was the youngest contestant to become a top-16 finalist in the Miss South Africa competition at just 20 years of age.

“What I most enjoyed about the pageants, though, was the charity work – the ability to give back to society,” she says. “In a sense, I was introduced to my purpose when I was 13.”

At 18, she started ZA Powerhouse, a nonprofit business focusing on how young people can contribute to their communities. The brand scooped the award in the NPO and Charities category of Top16YOBA.

“It was unexpected – I didn’t even know someone had nominated ZA Powerhouse,” Zanele says.

Winning the award has been a pat on the back for her, a welcome indication that her efforts to create impact in Soweto have been recognised, she says. Zanele also runs Diamonds Model Academy and has worked with top designers like Gert-Johan Coetzee.

The business information technology graduate says the Top16YOBA encourages young people to do something with their lives other than waiting for others to give them jobs.

“We may see ourselves as small brands, but we’re big in that we make a difference in our communities,” she says. “The awards also prove that it doesn’t matter where you come from – where you’re going matters. I’m so grateful for this award. It’s a tangible representation of a dream realised.”

There’s little doubt that Top16YOBA is a life-changing event for the winners – and motivation for future entrants to strive for excellence. 

“Small businesses thrive against the odds in South Africa,” says Pat. “Although experience is the best teacher, we still need government and big business to create more enabling environments for SMEs, which includes legislative changes, better payment terms and opportunities to try, fail and come back stronger,” he notes.

Get more SME insights, inspiration and practical advice in the SME Focus section of our content hub.

By Fiona Zerbst

Fiona is an author and corporate writer who covers a wide range of business, financial, conservation and cultural topics.

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