Performance of youth-owned businesses

Abstract

Youth entrepreneurship is one of the solutions for unemployment. Previous studies focused to some extent on the support of youth entrepreneurship. The purpose of this paper was to analyse the profitability of youth-owned businesses. This paper was aimed at making a scientific contribution to research studies by Radipere and Ladzani (2014) and Hallak et al. (2014) by analysing the profitability of youth-owned businesses, using a theoretical framework of profitability. A quantitative approach was followed to achieve the research objectives. Data were analysed using the Statistical Package for the Social Sciences (SPSS) to compile descriptive statistics. The research results show an increase in profits attained by the youth-owned businesses surveyed. Moreover, the results indicate that youth-owned businesses recorded business growth from sales. Sales growth is an essential parameter for the survival and financial growth of a business. Good sales growth in a business can always be used for the benefit of the employees and the business in terms of providing salary raises, acquiring new assets, and expanding the business or the product line. Recommendations are made for young people who have undertaken new entrepreneurial ventures, business consultants, and other stakeholders in youth entrepreneurship, and future research directions are outlined.