A Recipe for Job Creation in Africa that is Proven to be Quick and Affordable

South Africa lost more than 2 million jobs as a result of the pandemic. According to a world bank blog post, it costs around $30,000 to create one job. That is too expensive to work in Africa or any other third world economy.

In November 2020 as part of The Human Entrepreneur Incubator Program, we succeeded to reduce the cost of creating a job to below $3,000.

Now Africa has a solution to create much needed jobs through a process that is simple, quick and affordable.

The program is split into two parts. First it assists people to make an informed decision between starting a business or following a career.

Those who choose to start a business are then screened and invited to attend the second part of the program, the incubator.  

During the incubator part of the program candidates are required to start a business in 21 days with paying customers, making enough money to replace the founders salary.

Getting people to want to start businesses

Between August to November 2020, close to 1,700 candidates completed The Human Entrepreneur EDP (entrepreneurial development program) online.

At the end of the online program, candidates made decision between finding a job and following a career. The results were surprising. 

29% said they want to become entrepreneurs, 36% said they want to follow a career, and 35% indicated they want to do both, to have a job and build a business on the side. 

I spoke to many candidates who chose to get a job and build a business on the side and found the chief reason for this choice was driven by the belief that you need money to start a business, which is a myth. 

In a nutshell, the program assists in awakening potential business owners and serves as an excellent work readiness tool. 

Starting businesses in record time

53 candidates were chosen to attend the 21-day incubator program. The candidates come from previously disadvantaged communities.

A solution for effective job creation in Africa and the world

60% of candidates replaced their salary while the remainder is well on their way. Some achieved it in 7 days. 

The incubation program created 35 new businesses in 21 days, all with customers, generating turnover, and many being profitable past the desired outcomes. 35 Businesses means 35 new jobs created in 21 days, giving people the power of creating their own economy and self-determination. 

NONE of the businesses created needed external financial support. All was done using whatever money the founder had.

This was achieved starting with just over 50 people. What will happen if we consistently take people through this program? At its current price point, this is absolutely possible.

Types of businesses created

Most of these businesses are low tech or no tech, ranging from hairdressers, food businesses, car mechanics, clothing brands, simple trading businesses. These are the types of jobs that Africa needs right now.

All of these businesses serve the communities they were founded in. Thus this program can be used as a targeted economic stimulus tool for struggling communities.

Where is this applicable?

The program is perfect for job creation through CSI, YES and other job creation programs The same program can be used to assist employees who have been retrenched and need to find their feet again. The program can also be used to help existing entrepreneurs who lost their businesses to build new ones in record time.

Interesting mindset shifts

Here are some interesting mindset shifts the candidates experienced.

#1. Start Today, Make Money Today

Some candidates got their first customers in 1 day, another added 13 new customers to his business in 24 hours after being stuck on 10 customers since the inception of the business. 

One candidate had an idea at the start of the program, and 7 days later, they made 1,5 times their monthly salary in profit.

People are hungry, they have direct financial needs now, and I feel this is where 6 or 12-month programs fail because why would anyone be motivated to build a business over 6 or 12 months when they need money for food now. 

#2. Many Started, Closed and Started Another New Businesses during the 21 Days

Many new businesses were started in week 1; some were closed down in the same week, and different businesses started instead. Some candidates even started and closed more than 3 businesses in 3 weeks.

#3. Some Started in Week 3, and Still Succeeded

One person started the program in the last week. On day one, they came up with 6 ideas to make money and had their first paying customer by the end of that day.