Spaza shops, a cornerstone of South Africa's informal economy, operate in highly competitive, often low-income environments. These businesses, often run by young black entrepreneurs, face significant challenges such as limited access to business-specific training, inadequate branding, and operational hurdles. Innovation is crucial for spaza shop owners to thrive in such a demanding context. By leveraging innovative strategies, entrepreneurs can overcome challenges like low cash flow, human resource management, and marketing, ultimately enhancing their market access and growth.

The informal economy, particularly spaza shops, plays a vital role in South Africa's local economic development. Designing programs tailored to the specific needs of township entrepreneurs can contribute to both social and economic upliftment. These programs should prioritise providing low-cost, context-specific, and efficient learning opportunities that equip entrepreneurs with the skills necessary to succeed in the competitive informal sector.

In partnership with Haleon, Youth Lab conceptualised and ran the Grandpa Spaza Academy from 2018 to 2023. This project aimed to develop a community-specific program designed to empower spaza shop owners in South Africa. By fostering a culture of financial sustainability and innovation, the program seeks to equip spaza shop owners with the tools necessary to thrive in a highly competitive business environment.

To date, 1050 businesses have completed the programme, with R400 000 in business development funding being awarded across 40 different communities in Gauteng.

Program Components:

• Training Workshops: Conduct comprehensive training workshops covering topics such as financial management,marketing, branding, customer service, and innovation.

• Mentorship Program: Establish a mentorship program pairing experienced entrepreneurs with spaza shop owners to provide personalised guidance and support.

• Networking Opportunities: Organise networking events to connect spaza shop owners with suppliers, customers,and other industry professionals.

• Business Plan Development: Assist spaza shop owners in creating detailed business plans that outline their goals,strategies, and financial projections.

• Access to Resources: Provide spaza shop owners with access to affordable resources, such as business tools,equipment, and financing options.

Grandpa Spaza Academy By Community:

Mamelodi, Atteridgeville, Mabopane, Soshanguve, Ga-Rankuwa, Soweto (Dobsonville, Diepkloof, Meadowlands, Braamfischerville, Protea Glen, Mofolo, Zola, Klipspruit, Doornkop, Emndeni, Naledi, Jabulani, Rockville), Vaal (Sebokeng, Evaton, Orange Farm, Palm Springs), Diepsloot, Thokoza, Tembisa, Alexandra, Westbury, Newclare, Kagiso, Swanneville, Carletonville, Krugersdorp, Westonaria, Randfontein, Katlehong, Vosloorus, Rondebult, Daveyton, Benoni, Kwa-Thema, Thokoza Park.