As South Africa grapples with an unemployment crisis, the widely held belief that entrepreneurship is a cure-all solution is up for debate. While often touted as a more accessible route for earning an income, the reality is that far fewer South Africans are involved in entrepreneurial activities (10.3%) compared to those who are employed (40.3%). Moreover, the overemphasis on “entrepreneurship for all” overlooks the notion that it may not be a suitable career choice for everyone.
This is according to Dr Corrin Varady, education analyst and CEO of IDEA, who says that entrepreneurship education alone should not be seen as the default solution to unemployment. “Although job scarcity forces 89.5% of entrepreneurs into business, and entrepreneurial training has become more accessible thanks to public and private sector efforts, we need to focus on developing key skills in both basic and higher education. This will help to nurture 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.”
“Furthermore, entrepreneurship requires problem-solving abilities and a deep understanding of business fundamentals,” he points out. “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. Many learners drop these subjects as they find them challenging. We must continue to encourage students to take subjects that expose them to concepts and knowledge that could lead them towards entrepreneurial problem solving.”
Since these subjects are foundational not only for success in entrepreneurial endeavours but also for traditional employment, Dr Varady calls for concerted efforts to support national and provincial government in improving student performance. To this end, he advocates for teacher capacity building in these areas, and employing data analytics to identify and address learner challenges proactively and early on.
He notes that the entrepreneurial journey is often romanticised, with some underestimating the complexities of running a business, and being too hurried to accurately understand the associated risks and liabilities. “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.”
“With this in mind, learning from the experience of other business leaders is equally as important as the critical foundation of formal education,” says Dr Varady. “Working for someone else, whether an entrepreneur or corporate, is invaluable for acquiring the skills necessary to run a business. I, myself, am a product of the people I worked for before starting my own company. Although starting a business is often seen as the ultimate goal, working for an established organisation is equally aspirational with many entrepreneurs finding inspiration in their career experiences. But at the end of the day, a strong workforce remains the cornerstone of all successful enterprises.”
He therefore stresses the need for continued synergistic 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. Additionally, investing in entrepreneurial support systems will create a more conducive environment for job creation and economic growth.”
“By focusing on building a solid foundation in basic education, Technical Vocational Education and Training (TVET) and tertiary education along with job-readiness experience, we 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. Let’s create a society where individuals have the opportunity, and self-determination, to reach their full potential, regardless of their chosen path,” concludes Dr Varady.
