Entrepreneurship has been centered as one of the solutions to help with unemployment. However, is this a realistic solution? Picture: iStock
For a while, entrepreneurship has been highlighted as the solution to South Africa’s high unemployment rate.
However, it begs the question, is it a realistic solution? This is considering what goes into the establishment and running of small and medium enterprises (SMEs) in the country.
Dr Corrin Varady, education analyst and CEO of IDEA says entrepreneurship training has become a more accessible route for earning an income, but only a few South Africans are involved in entrepreneurial activities.
He adds that moreover, the overemphasis on “entrepreneurship for all” overlooks the notion that it may not be a suitable career choice for everyone.
Dr Varady is of the view that entrepreneurship education alone should not be seen as the default solution to unemployment. He does acknowledge that unemployment has resulted in a lot of people entering the business world.
Also, the public and private sectors have played a big role in making entrepreneurial training more accessible to ensure more people can make their own income.
However, he emphasises that there needs to be focus placed on developing key skills in both basic and higher education. Once there has been enough focus placed on the two, there will be excellence in entrepreneurship and simultaneously create job-ready individuals.
“If we neglect this approach, it can lead to ill-prepared ventures and ultimately, increased failure rates. Ideally, entrepreneurship should be a conscious choice underpinned by experience, knowledge, and skills,” he adds.
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It is important to be serious about basic entrepreneurship skills such as problem-solving abilities, and a deep understanding of business fundamentals.
“Despite efforts to integrate entrepreneurship into the basic education curriculum, aligned with the National Development Plan’s goals, there has been a decline in the number of students taking subjects such as Business Studies, Maths and Economics.”
He believes that learners drop those subjects because they find them challenging. However, there must be encouragement from relevant stakeholders for learners to continue with these subjects. The concepts and knowledge that the subjects can offer can lead them towards great entrepreneurial problem-solving.
However, the abovementioned subjects are foundational not only for success in entrepreneurial endeavours but also for traditional employment. He believes that the national and provincial governments can put great efforts into ensuring that learners’ performance increases.
He points out that usually the entrepreneurial journey is often romanticised, with people underestimating the complexities of running a business.
“Instead, they envision themselves as the next Mark Zuckerberg, Jeff Bezos, or Elon Musk, captivated by the allure of rapid success and financial gain. However, contrary to popular belief, building a successful business demands persistent effort, a deep-seated commitment to one’s idea, and the ability to navigate both triumphs and setbacks.”
Learning from the experiences of other entrepreneurs in life is important as the foundation of formal education. Dr Varady adds that for some starting a business is the ultimate goal, but for others working for an established organisation is equally aspirational.
“Many entrepreneurs have found inspiration in their career experiences. But at the end of the day, a strong workforce remains the cornerstone of all successful enterprises.”
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Dr Varady places emphasis on the need for continued partnerships between education, industry, and government.
“By fostering collaboration and implementing practical solutions such as apprenticeship programmes, on-the-job training, internships, and mentorship initiatives, we can equip young people with the skills and experience needed to succeed both as entrepreneurs and employees.”
He says a solid foundation in basic education, Technical Vocational Education and Training (TVET) and tertiary education, with job-readiness experience can empower individuals to make informed career choices.
Whether they become successful entrepreneurs or valuable employees, they will contribute to a more robust and sustainable economy. “Everyone is not necessarily an entrepreneur and it’s time to dispel that myth,” says Dr Varady.
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