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Small businesses are vital for the well-being of an economy and the livelihoods of the citizens of a country. The nation of South Africa is currently faced with three main economic challenges; poverty, income inequality, and unemployment (Centre for Development and Enterprise and Parliament, 2017). The purpose of this dissertation is to develop a way to empower small businesses owned by youth in cultural industries, such as drama (theatre), arts, crafts, music, manufacturing of beads, and design of traditional apparel and painting as a strategy of creating employment and self-employment or the creation of small businesses by the youth. This study advocates for the use of entrepreneurship, mainly in the cultural industries (creative arts) to help reduce youth unemployment. A quantitative research method was utilised in the research. Secondary data was obtained from public databases. Results from the statistical model show that Tourist arrivals, Gross Domestic Product, and Youth unemployment have a direct influence on employment in Arts and Culture. Therefore, proving that an investment in the cultural industry is essential to create employment for youth.