Enabling Entrepreneurship
Technical Task Team
Basic Education, Higher Education, FET and
SMME workstreams
HRDC Summit
4 March 2014
Dr Taddy Blecher
Million jobs
11 Million new jobs need to be created by
2030 according to the NDP
25
20
15
10
5
0
24
13
2013
2030
If current statistics hold, 7.7m of the additional jobs would need to
be provided through SMMEs
Entrepreneurship and entrepreneurs MUST be
developed, encouraged and supported
Extensive research was conducted to
understand the current reality
• Over 200 meetings, workshops and consultations
• Over 700 studies on Entrepreneurship in SA catalogued,
analysed, synthesised, and summarised
• Multiple research studies
• Basic Education on 7 countries
• Higher Education survey with 20 SA Universities, 12 Business
Schools
• FET interviews and surveys of more than 20 colleges
• National Portal research of over 50 countries
• Entrepreneurship Training Research - 120 govt and private
• National Entrepreneurship Councils - 7 countries
South Africa has the lowest levels of
entrepreneurship and education in Africa
Country
Perceived
capabilities
Quality of
education
TEA 2012
Nascent
entreprene
ur-ship rate
New
business
ownership
Established
business
ownership
rate
Malawi
86%
65
36%
18
20
11
Zambia
84%
39
41%
27
15
4
Namibia
76%
126
18%
11
7
3
Ethiopia
74%
85
15%
6
9
10
Ghana
86%
62
37%
15
23
38
Nigeria
86%
83
35%
22
14
16
Botswana
70%
55
28%
17
12
6
Uganda
88%
69
36%
10
28
31
South
Africa
40%
140*
7%
4
3
2**
*140 out of 144 countries worldwide
** 2nd lowest in the world
Source: GEM South Africa report 2012
Phases of entrepreneurship
In terms of raising and supporting
entrepreneurs, the situation is concerning
1. Schools: Non-business studies students spend a maximum of 100
hours between Grade 1-12 on entrepreneurship (8 hours per year).
Business Studies students learn business theory, but not
entrepreneurship
2. FET Colleges: “We estimate that less than 1 student in 10 at FET
colleges learns anything about entrepreneurship. Less than 1 in 100
graduates starts a business” Chief Director DHET
3. Universities: 95% of university staff interviewed felt that universities
in South Africa are not sufficiently entrepreneurial
In terms of raising and supporting entrepreneurs,
the situation is concerning (Cont)
4.
SMME’s: 62% of entrepreneurs surveyed feel
government makes it more difficult for them to operate (tax
regime, compliance requirements, etc.)*
5.
New Ventures: less than 2 in 100 new ventures in
most government training programmes are making it
beyond 2-years
There are some good things happening…
• Renewed focus on developing and growing township and rural
businesses through the informal sector strategy and other incentive
schemes
• New BEE legislation greatly favours opportunities for small black
business
• Two Centres of Entrepreneurship at FET Colleges have been
launched
There are some good things
happening…(Cont)
• Incubation Support Programme
• SETAs’ strategy to offer small business development
programmes
• dti red-tape reduction initiative
• DTI and DED collaboration initiatives (as well as SEFA
and SEDA and so on)
To achieve the NDP goal, entrepreneurship
MUST take centre stage
Education
Culture
SME
support
Enabling
environment
Entrepreneurship education needs to be
included at schools, FET Colleges,
Universities and across broader society
A culture of entrepreneurship
must be developed through
education, media and PR
All aspects of the entrepreneurship
ecosystem must be optimised
Removal of administrative burdens
to ensure ease of doing business
1. Schools: Build an entrepreneurial
mindset in learners
1. Collaborate with the Foundational Learning task team to
improve foundational skills
2. Implement an entrepreneurial curriculum for learners in
all grades (including associated 21’st century skills)
3. New teachers’ education related to these fields is
required for new and existing teachers
4. Actively encourage businesses to engage with local
educational institutions
2. Universities: Support students and
build towards entrepreneurial universities
1. Position entrepreneurship education at a strategic level
2. Focus Universities efforts on their own students
3. Establish Entrepreneurship centres at all Universities
2. Universities: Support students and build
towards entrepreneurial universities (Cont)
4.
Include in the University funding formula support for
Innovation Outputs that can lead to IP and job
creation
5.
Develop partnerships to advance entrepreneurship
education
• Recognise and empower FEDCI to drive the agenda
6.
Measure and track entrepreneurship initiatives
3. FET Colleges: Give entrepreneurship
strategic focus at leadership level
1. Position entrepreneurship education at a policy and
strategic level. One Entrepreneurship course should be
mandatory for every FET student, in any discipline.
2. Review curriculum, pedagogical approach and assessments
3. Develop educators who teach entrepreneurship
4. Establish a national office for entrepreneurship education
and development
3. FET Colleges: Give entrepreneurship
strategic focus at leadership level (Cont)
5.
Profile entrepreneurship as a worthy pursuit and
encourage interactions with small businesses
6.
Focus on placing graduates in small businesses for
internships, mentoring and skills
7.
Develop a life-long support ecosystem for FET
graduates (internet, mobile)
4. SMME’s: Establish a massively
scalable ecosystem of support (1 of 2)
1. Entrepreneurial assets
– Develop a New National Portal and National Virtual Incubator
(one stop shop)
– Provide support tools and methods to access funding
– Provide support to mid-sized SMEs to practice sound financial
management and maintain adequate records
– Provide open access to business education and tools
2. Business support
– Raise awareness of Government programmes and public
reporting. Track results transparently. Use selection systems.
– Incubators should provide new businesses with full ecosystem
– Stimulate and encourage the formation of an Institute of
Business Service Providers for accreditation of BSP’s to monitor
quality standard, ethics, etc.
4. SMME’s: Establish a massively
scalable ecosystem of support (2 of 2)
3. Policy accelerators
– Develop legislation that differentiates between the big business
and SMME segments
– Reduce the red tape to improve “the ease of doing business”
– Relook at the labour laws relating to hiring and firing
– Establish an EFFECTIVE multi-stakeholder umbrella body of a
National Council for Small Business and Entrepreneurship
– Establish a dedicated SMME research capacity
4. Culture of entrepreneurship
– Establish a team to craft an integrated national strategy to foster
entrepreneurship throughout society
– Turn entrepreneurs into heroes
There is a lot to be done but it is doable –
together we can build an entrepreneurial SA
Grow entrepreneuriallyminded learners at school
Skill FET students to become
job creators on leaving college
Entrepreneurship
Develop entrepreneurial
universities and innovative
graduates
Support the existing SMMEs
to grow their businesses, and
first-time entrepreneurs
Thank you
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Commission Outcome - Human Resource Development Council of