Opinion: Entrepreneurship education can reduce unemployment in SA

Dr. Lawrence Seseni is a lecturer in the department of business management and Enactus UJ faculty adviser, Mr. Semanga Mabuza is a lecturer in the department of business management and Enactus UJ, and Prof. Tankiso Moloi is the executive dean of the College of Business and Economics at the University of Johannesburg.

They recently published an opinion article that first appeared in the Sowetan Live on 27 February 2025

In his state of the nation address, President Cyril Ramaphosa highlighted unemployment as the top national concern.

The Quarterly Labour Force Survey (QLFS – Quarter four:2024) found the number of unemployed youth (15-35) was 4.7-million. Statists places graduate unemployment at about 10%.

Given the high levels of unemployment in SA, some sentiments have focused on the university curriculum as misaligned with what the job market requires. One of the alternative approaches emphasises entrepreneurship education.

The job market cannot absorb all graduates, and as such, a viable solution to address the problem should be found.

The idea of entrepreneurship education is not new. As early as 1912, Austrian political economist Joseph Schumpeter had long considered entrepreneurship as a key element of growth. In his treatise, Schumpeter concluded that entrepreneurs were economic disrupters who drive economic growth and progress.

In developed countries such as the UK, entrepreneurship education was first introduced in the 1900s, as a result of state-owned enterprises that could not remain effective anymore and new solutions were needed to boost the economy. Small businesses were seen as the solution to this problem.

Similarly, in the late 1900s, the People’s Republic of China (PRC) changed its focus to emphasise small businesses. This resulted in many small businesses being created in rural and urban areas. The PRC followed this decision by introducing entrepreneurship education in higher education institutions. It supported students in starting and growing their businesses through business plan competitions and many other initiatives.

In SA, we see some moves towards this approach. In supporting entrepreneurship education in universities, Universities SA, the umbrella body representative of the 26 public universities, in partnership with the department of higher education, has introduced entrepreneurship development in higher education.

Funding is made available to support entrepreneurship in tertiary education. This initiative holds annual competitions for student entrepreneurs and entrepreneurship educators. Universities have also established a technology transfer office, which, among other things, is aimed at helping students protect their intellectual property and commercialise their innovations.

The World Bank report shows that “entrepreneurship education increased self-employment among participants about one year after graduation”. Given this, and to prepare graduates for the world beyond the university, lecturers at the University of Johannesburg’s College of Business and Economics (CBE) have been promoting entrepreneurship education among its students.

It was identified that small businesses ordinarily struggled to market their products. Students were encouraged to find solutions to this problem and one of the areas they identified was that these small businesses did not have an online presence.

The business idea was to launch an online store to assist market the products. Part of the project involved business clinics where students were taught to move beyond the ideation phase to the formation of the business. In this regard, students were exposed to starting, launching and managing an e-commerce store.

After this project, students began to generate other business ideas in the technology sector. Some of the innovative ideas address food security, health, education, energy and social services. Based on this initial success, the lecturers at CBE referred these ideas to the Enactus MTN Digital Innovation Challenge and other related competitions – seen as a move to strengthen the world of work with knowledge and education. Some of these innovative ideas were recognised and received funding to help these students to start their tech businesses.

Another successful example includes an application (APP) that students developed, which is earmarked for both the patient and medical practitioners. The prototype was tested in 2024 and won the Brics Innovation Challenge.

These early successes point to entrepreneurship education holding a promise as one of the interventions to prepare students for the world outside the university world. This initiative shows students evolving from thinking of employment to another mindset of having their own businesses.

It also shows a different skill set that students develop as they participate in the project (for example, how to start a business, thinking about business structure, processes, finances, taxes, and so on.).

Scaling on initiatives of this nature is crucial in reducing the number of graduates who leave university in search of employment, but also for broadening the tax base and stimulating economic growth as new ventures make their way into the market.

*The views expressed in this article are that of the author/s and do not necessarily reflect that of the University of Johannesburg.

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