Small businesses flourish with support from university

With a policy that allows students to operate businesses on campus and to employ students to run them, funding support to grow these businesses and training to help student entrepreneurs to balance academic work and running a business, Nelson Mandela University (NMU) in South Africa’s Eastern Cape province is driving entrepreneurial development and social innovation.

In line with this focus, NMU’s finance division in December disbursed ZAR2.7 million (about US$147,000) in support of student and community small business development through its campus-based Nelson Mandela University Africa Hub and its Centre for Entrepreneurship Rapid Incubator (CfERI).

The money was divided into grants of ZAR100,000 and awarded to its entrepreneur incubatees – 85% students and 15% community-based entrepreneurs – all of whom established and are running small businesses. The terms of the grant are that it should be used to grow their businesses. In the past year, the Hub and CfERI have incubated 35 small businesses that have created 85 jobs.

NMU has a policy on entrepreneurial development that allows students to operate businesses on campus and to employ students to run them.

Current student businesses on the Gqeberha and George campuses in South Africa’s Eastern Cape province, include tutoring services, website development, driving schools, tuckshops, food and ice cream vendors, fashion and beauty stores, and tailoring. The criteria to operate a small business on campus include a lease agreement with the university and payment of a rental fee.

Enterprise development fund

“To actively reduce the massive unemployment levels in our country – approximately 60% of South Africa’s 15- to 24-year-olds are unemployed, and more than 40% of our 25- to 34-year-olds – we need our universities to be the cornerstone of entrepreneurship,” says Dr Thobekani Lose, the director of the NMU Africa Hub, head of CfERI and a researcher and specialist in student entrepreneurship development and business incubation development.

With funding from the Small Enterprise Development and Finance Agency, SEDFA, an implementing agency of the government’s department of small business development, CfERI provides an 18- to 36-month incubation programme and other services to students, graduate entrepreneurs, unemployed young people, and young township entrepreneurs, led by Lose.

“Incubated businesses need capital to grow and, as the Hub, we decided to create an Enterprise Development Fund, to which the university’s finance division granted the ZAR2.7 million. The incubatees all have to provide us with business financials to show how they invested the R100,000 they received,” says Lose.

“Enterprise and Supplier Development is part of Nelson Mandela University’s [Broadbased-Black Economic Empowerment] B-BBEE policy and the university views the ZAR100,000 given to each of the 27 SMEs as an essential contribution towards building student and community entrepreneurial success,” says Nokuzola Titima, NMU’s director of corporate finance.

“In all our B-BBEE initiatives, we are cognisant that it is not sufficient to just meet rand-spending targets, but rather to allocate resources to the right places and with the right people. In so doing, we contribute to meaningful economic shifts.”

An entrepreneurial university

The university prides itself on being an entrepreneurial university, championed by Professor Sibongile Muthwa, the vice-chancellor, and Luthando Jack, the deputy vice-chancellor people and operations. As part of this, the Nelson Mandela University Africa Hub was established in 2024 to drive entrepreneurship and social innovation on the continent.

Said Dr Karen Snyman, a longstanding entrepreneurship specialist at NMU: “We are first engaging universities in South Africa, followed by other universities in Africa.”

In August 2024, Snyman was elected as the national Entrepreneurship Development in Higher Education (EDHE) chairperson for the Student Entrepreneurship Coordinators Community of Practice.

“This programme is supported by the Department of Higher Education and Training and the University Capacity Development Programme,” says Snyman.

“EDHE is all about developing the entrepreneurial capacity of students within the 26 public universities so that they can become economically active during and after their tertiary education.

“We constantly remind our student entrepreneurs that they are students first, and that their studies must take precedence. Balancing their time between their studies, running a business and having a social life requires maturity, diligence and time management.

“The students learn this through our co-curricular and voluntary programmes, one of which is the Student Employability and Entrepreneurship Development programme,” says Snyman.

Lose adds that the university would, one day, like to be in a position to influence national policy to include entrepreneurial education from basic education level upwards. He says: “We need far more leadership across all sectors to make sure entrepreneurship development gets enough funding, resources, awareness and a powerful voice.”

Who are some of these student entrepreneurs?



Winston Letwaba, second-year BCom accountancy student, runs the Advanced Academy of Excellence

“I am a CfERI incubatee and I am MD of my business, the Advanced Academy of Excellence – an online tutoring academy.

I currently employ about 21 tutors – they are second-, third- and final-year students and postgraduates pursuing mainly engineering, accountancy, IT and medicine degrees. The tutors earn between ZAR50 and ZAR100 per hour and approximately ZAR1,200-ZAR1,500 per month. Learners pay ZAR49-ZAR69 per hour, depending on the grade they are in.

“The ZAR100,000 grant has been used to establish a website for the academy for the purchase of tech, including videography equipment, wi-fi routers, tablets, stylus pens and headphones, so that my team can connect nationwide with learners.

“The tutors also physically go to schools in the Nelson Mandela Bay Metro where learners aren’t online and don’t have access to tutors. We are looking for funders to sponsor under-resourced schools and learners.

“We are also doing activations at schools and some of the grant money was used for branding, banners, gazebos, T-shirts and caps for our tutors. We recently launched our influencer marketing campaign at one of our local high schools, Victoria Park High.

“I have a second business that produces content for social media. Being an incubate, I have access to the higher education market and, last year, I produced short interviews, reels and other content for the Entrepreneurship Development in Higher Education (EDHE) Indaba attended by 26 universities across South Africa, and sponsored by CfERI.

“Last year, I was a national finalist in the EDHE Entrepreneurship Intervarsity, competing against all 26 universities. I have been fortunate to win several entrepreneurship competitions, including a ZAR50,000 investment from Nedbank for being placed first in the Township Entrepreneurs Alliance Kasi Business Pitch.

“I live by our entrepreneurship motto that your network is your net worth, and the networks I have built as an incubatee have played a huge role in the success of my business. I am so fortunate to have this investment in me.”



Akhanya Ntantiso, a third-year marine engineering student, runs the Hector Pieterson Tuckshop

“I am constantly working on making more money year-on-year while studying. It’s a balancing act, but I need to do this.

“In 2024, I ran a successful tuckshop in an allocated space inside the Hector Pieterson residence on North Campus, together with final-year education student, Claire Lucille Oosthuizen.

“I worked very hard to raise the ZAR50,000 capital that we each needed to put in to start the business, including working at Steers and Checkers. We needed to purchase stock, fridges, microwaves and CCTV cameras. To be awarded the space here, you have to be a registered business and present your plan to a panel of judges along with several other applicants. Our rent was ZAR2,700 per month but, fortunately, our shop was incredibly busy.

“We bought our stock wholesale from Finro Jumbo and we sold a range of products, including bread, cold drinks, chips, pies, burgers, tinned fish, corned beef, baked beans and other items like pads.

“It was my first business, so it was very important for me to be an incubatee and learn about how to be an entrepreneur, how to manage the profit and expenses, and wage contracts. We employed eight students and they did four-hour shifts in the shop which was open from 8:00am to midnight.

“Claire and I worked fantastically as business partners as she was good at the admin side and I was more in the front, dealing with issues, including problems that arise with employees.

“This year we had to hand over to other entrepreneurs as a lot of students apply for this space. I am now transitioning into a new business where I am using the money I have made and the grant from the university to establish a student transport service in the suburbs close to the Summerstrand campuses where a lot of students live.

“So far, I have bought two good second-hand cars and I have found a responsible business partner. I want to build up to five cars and establish a regular clientele.

“The drivers will all be very carefully selected with strict criteria, such as no drinking, as students often complain about drivers who drink. The drivers will rent the cars and pay a monthly fee to the business.

“I am now sorting out the insurance, maintenance plans, trackers and all the other aspects required for running vehicles. I am aware this is not an easy business but, with my business and incubation experience, I can make it work.”



Nicole Louw, a fourth-year pursuing a diploma in management, runs Naturally Nirvana Beauty

“My entrepreneurial journey started with the CfERI in 2022 in my second year. I started my business, Naturally Nirvana, in 2021 and it is the manufacturing and selling of natural haircare products.

“The idea for my business is based on the fact that I have personally tried a lot of haircare products and I wasn’t satisfied with them. So, I decided to make my own, using natural herbs and flowers as I am also a keen gardener and I grow many of the plants that I use in my products, including hibiscus, aloe vera, rosemary, mint and rose.

“I decided on the name Nirvana as I started doing yoga during the COVID-19 pandemic and Nirvana is a place of peace, solitude and nature.

“I did a course on how to make lotions at InnoVenton on campus. InnoVenton is a research institute focused on product and process development, and it runs a number of courses. I also did further research online.

“I sell online and I advertise on campus. This year, using the grant from the university, I am opening my own natural haircare salon on campus in a container near the residences, which I will rent. I’ll employ students who know how to do nails and hair and we’ll use and sell Naturally Nirvana.

“What I have learned as an incubatee is that you need to know your target market extremely well, and you need all the proper paperwork, policies and registrations in place. You also need to know how to treat all kinds of customers well, and give them quality service and quality products.

“I currently need to divide my time between my studies and business but, when I graduate, I want to focus on expanding my market and getting my products into different salons.”

Tsakani Shilowe, a masters student in applied language studies, runs Madiba’s Ice Cream

“I never imagined I could get where I am. The entrepreneurial incubation has transformed my thinking and contributed to the success of my soft-serve ice cream business on NMU’s South Campus, which I started in March 2023.

“I rent space from the university, which I share with a nursing student, Buti Mashamgoane, who sells iced coffee.

“This year, through CfERI, I am learning about employment contracts, as I have hired a student to assist me, which also helps to free up more of my time, as my masters is demanding.

“With the ZAR100,000 grant money I received, I paid off the debt on my first ice cream-making machine and equipment, and bought a second machine and established a second outlet.

“I sell vanilla, chocolate and strawberry ice cream and I either use ready-made ice cream that I can defrost or I buy the powder and mix it with filtered water. During business hours, I store my stock in cooler bags and, after hours, I store it in my res fridge.

I sell the ice cream for ZAR13 a small cup, ZAR20 for a big cup and ZAR15 for cones, and, from time to time, I run specials.

“My big dream is to be as big as Milky Lane and I would also like to have some ice cream vans that drive around the streets and beach playing that tune that is so familiar to many of us [and signals that the ice cream van is outside].”

Anita Sodladla, a community entrepreneur, runs The Patio

“I’m a chef and an entrepreneur, and I established a takeaway spot called The Patio in June 2021. A year later, I expanded and I now have a catering business, mobile food truck for festival and markets, and a restaurant for 50 people.

It is also called The Patio, and is situated between Gqeberha’s industrial area of Struandale and the Zwide-Kwazakhele townships.

“I live in Kwazakhele and I started the three-year CfERI incubation with Dr Lose at Nelson Mandela University in 2024 because, as an entrepreneur, I needed assistance to run and grow my business, including drafting contracts, doing accurate quotations, managing finances and tax, and upscaling.

“To apply for the ZAR100,000 grant we had to have all our paperwork and business registration documents in order. I was successful and I have used the grant to get a second food trailer and employ two more people to help manage our growing kitchen.

“I have such a passion for food and my clients. Two of the most popular dishes are loaded fries – fries with different sauces such as cheese, bacon, jalapeno and mushroom – and the ‘Gatsby’ – a bun filled with garnish, fries and either grilled chicken, pork or hake and finished with our special house sauce. I also make sure my pricing is right, such as R60 for a chicken Gatsby.

“We are especially busy on weekends as well as when people get paid, which is mid-month and month-end. We also do special events such as birthday celebrations, and we do fun happenings like ‘Chill ’n Paint’ where people get a canvas and paints.

“The incubation has been really good and it has taught me not to put all my eggs in one basket and to form partnerships with other incubatees. Six of us have formed a business that helps other township businesses to become compliant and to assist them with services such as registration, staff training and accounting.

“Through the incubation I have also learned how to apply for funding to grow my business. As a result, I managed to secure the grant funding from Nelson Mandela University and Dr Lose further encouraged us to apply for ZAR250,000 in funding from SEFDA Asset Assist, which I have done.

“I’m hoping I get it, as I can then expand to the next level, including, for example, buying my own bakkie [pickup truck] as I have to hire at the moment. I’m a chef with a mission and my vision is to have several outlets of The Patio, and to franchise it one day.”