Johann Landsberg, Estelle Landsberg
Abstract
Unemployment, especially youth unemployment, continues to be a critical challenge for African countries. Due to resource and skills constraints, entrepreneurs struggle to generate viable business ideas. This study investigates the potential of generative artificial intelligence (AI) tools, specifically ChatGPT and DeepSeek, to support low-capital start-up ideation in African markets for opportunities already proven successful. The study was guided by the effectuation, frugal innovation, and technology adoption theories, utilising a qualitative exploratory design. Iterative prompt engineering was employed to generate and assess business ideas, which were then compared with evidence of proven ventures across the continent. The findings indicate that AI can reliably suggest feasible business opportunities, with 70% overlap between ChatGPT and DeepSeek outputs. Most suggested include reselling daily essentials, mobile money services, food delivery, tutoring, and laundry services, all requiring minimal start-up capital and align with models already successfully implemented in Africa. The study highlights AI’s value as an accessible, low-cost tool for entrepreneurial brainstorming, offering practical support to early-stage entrepreneurs in resource-constrained environments.