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African Entrepreneurship in Global Contexts                                 Copyright © 2010 WASD
                                                          1

FOSTERING ENTREPRENEURSHIP EDUCATION
  IN SOUTH AFRICA: THE ROLE OF SECTOR
 EDUCATION TRAINING AUTHORITIES (SETA)
                           Kachesa E Bbenkele and Alain A. Ndedi
                                     University of Johannesburg, South Africa

          Abstract: Programmes which aim at developing entrepreneurship are numerous in South Africa
          but tangible results are difficult to see, if any, as unemployment is still high. The reasons are
          twofold: either there are not many new enterprises that are being created or there is insufficient
          growth that is taking place within existing enterprises.
          The present study investigates some of the interventions which have been introduced by
          the South African government through its various agencies to support entrepreneurship
          and points out the challenges they face, namely policy development, operational and
          pedagogic impediments. A simple model is suggested for development of entrepreneurship
          training and suggests roles to be played by the Sector Education Training Authorities
          (SETAs) and other development agencies.
          Keywords: Entrepreneurship Education, South Africa, Employment.

                                                         who saw him as a person who does things
               INTRODUCTION                              “that are not generally done in the ordinary
                                                         course of business routine. He is an ideas
The interdependence of economic develop-                 man and a man of action who possesses the
ment and socio-political change is generally             ability to inspire others and who does not
recognized by social scientists (Adelman                 accept the boundaries of structured situa-
and Morris, 1965). Entrepreneurship is                   tions, the creative destructor”. Say (1803;
considered to be an important mechanism                  1996) furthered the work of Schumpeter
for economic development through                         and distinguished the entrepreneur and the
employment, innovation, and welfare                      capitalist and further linked the entrepre-
effects (Wennekers and Thurik, 1999;                     neurs and saw them as agents of change.
Baumol, 2002). The importance of
developing entrepreneurship to contribute                    De Vries (1977) describes the entrepre-
to economic development has been widely                  neur as “an individual often inconsistent
recognised.                                              and confused about his motives, desires
                                                         and wishes, a person under a lot of stress
However, Orford Herrington and Wood                      who often upsets us by his or her seemingly
(2004) caution that though this is a widely              ‘irrational’ impulsive activities”. This
held desire, entrepreneurship is poorly un-              positioning is behavioural and useful when
derstood. This poor understanding is also                we consider efforts aimed at supporting and
from the fact that the “animal” usually re-              developing entrepreneurs. This also
ferred to as the entrepreneur, is more com-              suggests the difficult of providing assistance
plex that the way described by the classical             or support to entrepreneurs. Indeed, many
economists like Schumpeter (1931, 1934)                  countries have been implementing many

      1
programmes and spending a lot of money is        pushed into entrepreneurship because they
establishing institutions around this and no     have no other means of making a living and
tangible benefits have been realised by          are unemployed. For those who are pulled
many.                                            to entrepreneurship, two major drivers of
                                                 opportunity entrepreneurship can be identi-
    In simple terms, Antonites (2003) de-        fied: those who are pulled primarily because
fines an entrepreneur as an individual with      they desire independence, and those who
the potential to create a vision from virtu-     are primarily pulled to entrepreneurship
ally nothing. Timmons (1994, 7) regards          because they want to increase their income
the process of entrepreneurship as follows:      as compared to, for instance, being an em-
                                                 ployee. The remaining share includes peo-
   Entrepreneurship is creating and build-       ple who maintain that they have no other
ing something of value from practically          way of earning a living (necessity-motivated
nothing; a human creative act. It involves       entrepreneurs) and people who became in-
finding personal energy by initiating and        volved in entrepreneurial activity primarily
building an enterprise or organisation, rath-    to maintain their income.
er than by just watching, analyzing, or de-
scribing one. It requires vision and passion,    The Total Entrepreneurial Activity index
commitment, and motivation to transmit           (TEA) for South Africa was 5.4% in 2004
this vision to other stakeholders.               and this placed it in the 24th position out of
                                                 the 34 countries in the GEM studies. This
   This chapter investigates the challenges      is lower than the ETA of other developing
which government and other agencies face         countries. However, the creation of new
in developing entrepreneurship in South          business should not be overemphasised as
Africa. The policies and strategies used are     not all businesses which are created survive
discussed and an approach suggested. The         and grow for them to contribute to national
value of the paper is in guiding policy mak-     economic development through wealth cre-
ers on how best to build entrepreneurship        ation. What the TEA index reveals is the
in South Africa for the needed contribution      low level of creation of new enterprises in
to economic growth.                              South Africa. For more entrepreneurs to be
                                                 developed there is a need to deal with the
                                                 three forces mentioned above which influ-
    THE THOERETICAL FRAMEWORK                    ence entrepreneurial behaviour through ef-
                                                 fective training interventions.
If entrepreneurship is understood to be
based on the needed behavioural patterns             This section explores the theories which
which are influenced by social, economic         underpin entrepreneurial education and
and psychodynamic forces, any attempts           development approaches necessary to deal
aimed at supporting entrepreneurs should         with the complex personality of the entre-
recognize these forces and develop effective     preneur which if effective would lead to
interventions to increase the total entrepre-    increased creation of new enterprises and
neurial activity in South Africa. Orford et al   their growth. Education theories are used
(2004) in their Global Monitor Report            here because there is a need to change the
define entrepreneurial activity as the rate at   attitude and out look of people in society
which a nation creates new businesses.           for entrepreneurial activities to take place,
There are many reasons motivating this pos-      and has the potential to do this education if
ture is multiple. Although most individuals      done correctly. This is supported by the
are pulled into entrepreneurial activity be-     Shay and Wood (2005) when they assert
cause of opportunity recognition, others are     that, “The education system plays an im-

      2
portant role in developing entrepreneurial       have the skills to start a new business is sig-
skills and sharing attitudes in several ways”.   nificantly lower than that in other develop-
                                                 ing countries like Argentina etc.”Wood
    This is also supported in the work on        (2004) supports
the concept of entrepreneur by Dolabela
(1999) who define it as “ a state of being – a   The various definitions point out the
lifestyle, … a way of thinking, an orientation   complexity of an entrepreneur and the fact
towards innovation and a capacity to pro-        that entrepreneurship can be learned and
duce changes in one self, the environment        its development in a country like South
and the means of seeking self actualization,     Africa can be supported. It is how this
including reaction patterns to ambiguities       learning is conducted and the nature of the
and uncertainties”.                              support structures which will determine
                                                 impact made in the creation of
    Other authors like Timmons (2004) and        entrepreneurship. The following section de-
Shane (2003) have described an entrepre-         velops entrepreneurship education.
neur as someone who is able to identify,
seize and take advantage of opportunities,              Entrepreneurial Education
searching for and managing resources so as
to transform opportunities into successful       Entrepreneurship education seeks to pro-
business”. This understanding describes the      vide students with the knowledge, skills and
entrepreneurs as a sophisticated person and      motivation to encourage entrepreneurial
aptly supported by higher levels of thinking     success in a variety of settings. A strategy for
which only education can provide.                entrepreneurship in education is a strategy
                                                 to strengthen the individual’s ability to see
However, the later works of Filion (1991)        and exploit opportunities in an economic,
did not help much as describing the entre-       social        and       cultural       context.
preneur as a complexity animal. He takes a       Entrepreneurship in education includes
system approach and looks at an entrepre-        development both of personal qualities and
neur as, “...someone who imagines,               attitudes and of formal knowledge and
develops and realizes visions”, a person who     skills, together these two main elements will
defines contexts. From this underpinning         give pupils/students competence in
emerged the school of thought which              entrepreneurship. Personal qualities and
looked at entrepreneurial development as a       attitudes increase the probability of a
process of preparing someone to develop          person seeing opportunities and doing
higher cognitive skills to be able to design     something about them. Work on en-
contexts. Hence, it is argued that               trepreneurship in education must primarily
entrepreneurial education is important as it     place emphasis on development of personal
equips one with a feeling of autonomy,           qualities and attitudes. In that way a basis is
independence or self confidence which are        laid for later utilization of knowledge and
all important aspects in starting a business.    skills in active value creation. Knowledge
                                                 and skills concerning what must be done to
Apparently, the apartheid educational            establish a new enterprise, and how to be
policies did not allow this to take place es-    successful in developing an idea into a prac-
pecially amongst Africans. The legacy still      tical, goal-oriented enterprise. (European
seems to linger on sixteen years after the       Commission, 2006)
new political dispensation. The work of
Shay and Wood (2005) supports this when              Entrepreneurship in education includes
they report that “The proportion of young        development both of personal qualities and
people in South Africa who believe they          attitudes and of formal knowledge and

      3
skills that will give students competence in         toward entrepreneurship, innovation
entrepreneurship. Personal qualities and at-         and reorientation requires that teachers
titudes increase the probability of a person         have knowledge of this. It is therefore
seeing opportunities and doing something             important to focus on entrepreneurship
to transform them into reality. Work on en-          in teacher training, and also provide
trepreneurship in education must primarily           courses in competence development to
place emphasis on development of personal            working teachers.
qualities and attitudes. In that way a basis is
                                                     4. The attitudes of school-owners and
laid for later utilisation of knowledge and
                                                     school managers: School-owners must
skills in active value creation. (Ndedi and
                                                     follow up the focus on entrepreneurship
Ijeoma, 2008) Knowledge and skills
                                                     in curricula and management docu-
concerning what must be done to establish
                                                     ments, and build competence and in-
a new enterprise, and how to be successful
                                                     sight among school managers.
in developing an idea into a practical, goal-
oriented enterprise.
                                                  It is important that educational institutions
                                                  are given legitimacy and motivation to work
According to ODEP (2009), in order to be
                                                  on entrepreneurship. School managers
able to concentrate on the objectives of
                                                  must be able to follow up, encourage and
entrepreneurship in the education system,
                                                  motivate teachers to be good role models
there are four factors that apply to all levels
                                                  and disseminators of knowledge. Both
of the education system:
                                                  school-owners and school managers must
                                                  take the initiative in collaborating with the
   1. Entrepreneurship as an integrated
                                                  business sector and other agencies in the
   part of instruction: Entrepreneurship
                                                  municipality. To successfully address un-
   must be defined as an objective in
                                                  employment across youth people, certain
   education, and be included in the
                                                  things need to be developed regarding the
   instruction strategy.
                                                  training of potential entrepreneurs through
   2. Collaboration with the local                tertiary institutions. Entrepreneurship
   community:          Instruction         in     education is a common course of study in
   entrepreneurship       requires     close      higher education settings. A wide variety of
   collaboration between schools and the          curricular approaches exist, though many
   local business and social sector. There is     common elements are found across institu-
   therefore a need for more arenas for           tions and settings. These texts and
   contact between educational institutions       programs must be structured to introduce
   and various players in society. In such        the concept of entrepreneurship and
   arenas educational institutions and the        provide hands-on experience and working
   local social and business sectors will get     models for students to develop skills as
   to know one another better, and cultural       entrepreneurs.       The      principles   of
   barriers may be dismantled.                    entrepreneurship must be considered
                                                  valuable for students at all levels.
   This will result in mutual benefit inas-
   much as it will increase the quality and
                                                      In response to the rapidly changing na-
   relevance of education and strengthen
                                                  tional landscape, not only of high unem-
   recruitment to the local business sector
                                                  ployment but more generally of economic
   and development of competence.
                                                  growth and job creation, entrepreneurship
   3. Teachers’ competence: Teachers are          is being increasingly emphasized as a critical
   important role models. A positive              resource. Timmons and Spinelli (2007)
   attitude among young people in schools         recognise that there is no substitute for ac-

      4
tually starting a company, but it is possible    In summary, Entrepreneurship education
to expose students in all fields to many of      seeks to prepare people, particularly youth,
the vital issues and immerse them in key         to be responsible, enterprising individuals
learning experiences through cases studies       who become entrepreneurs or en-
of successful entrepreneurs. Concerning          trepreneurial thinkers by immersing them
this point on students’ capacity building in     in real life learning experiences where they
entrepreneurship, a multi-sectoriel policy,      can take risks, manage the results, and learn
going from higher education institutions to      from the outcomes (ODEP, 2009)
centres of training, is needed. For a long
period of time, many graduates in all fields     DATA AND METHODOLOGY
of study were not trained in entrepreneur-
ship. However, many universities are en-         The approach used to collect data for the
gaged in various programmes dealing to fill      paper was twofold; first desk research was
this gap on training of potential entrepre-      conducted on selected work both local and
neurs. The courses included entrepreneur-        international in the area of entrepreneurial
ship and small business management, inno-        education. This was done to select a best
vation and creativity, opportunity recogni-      practice in education programmes aimed at
tion and business plans. These courses are       developing entrepreneurs.
aimed in developing and unleashing gradu-
ates’ expertise about entrepreneurship. As it       Review of critiques on the current train-
has always emphasized in the case of US,         ing programmes in entrepreneurial educa-
the proliferation of entrepreneurs was as-       tion was also conducted especially in the
sociated with the emergence of centres and       new      venture   creation    programme.
higher education institutions specialised in     Documents from the department of labour
entrepreneurship.                                were also used as a good resource to
                                                 identify the work being done by the Sector
Henry, Hill and Leitch (2003: 12) point out      Education Training Authorities and other
that entrepreneurship training can com-          government agencies. As expected, this
plement the early stage awareness-raising        source of information was not very good in
function of entrepreneurship education, as       identifying problems faced so far as it was
it provides the more practical skills that       not critical.
entrepreneurs require when they are ready
to set up their business. Ladzani and Van            The second source of information was
Vuuren (2002: 156) state that organisations      information collected from empirical inves-
wishing to develop entrepreneurship educa-       tigations on the impact made by the various
tion presuppose that the lack of training of     SETAs in supporting small, medium and
entrepreneurs is the main reason for             micro enterprises (SME) levy payers in skills
venture failure. In the same line, Pretorius,    development. The SETAs are not identified
Nieman and Van Vuuren (2005: 424) add            but whatever is mentioned is common to
that the transfer of the requisite knowledge     many of them.
and skills is the easiest part of training and
is incorporated in most training                   In addition to the information from
programmes         on       entrepreneurship.    SETAs, data is also used from impact assess-
However, the behaviour to engage in the          ment    studies     conducted    for    the
start-up process is what really matters and is   Department of Trade and Industry and
what is lacking in most entrepreneurship         Department of Science and Technology.
programmes.
                                                                  RESULTS


      5
This section first presents the interesting      not allow blacks to owning and running
models which have been suggested in de-          businesses.
veloping entrepreneurship and an analysis
is made on how useful these could be to          As a result of the historical past, Shay and
South Africa. The current approaches in          Wood (2005) propose that the low rate of
entrepreneurial development are then             entrepreneurial activity in South Africa is
presented and a suggestion made on a pos-        due to most South Africans not having a
sible new approach.                              “…belief in their own ability to start a busi-
                                                 ness…”. At this stage, it is suggested that ed-
 Crucial activities for entrepreneurial          ucational programmes would need to open
              development                        and change mindsets for students by
                                                 providing an environment where successful
Before the various models are presented, a       entrepreneurs receive wide recognition as is
useful scenario to use in reviewing entrepre-    the present case of Mr. Richard Maphonya2
neurial education programmes is suggested        with his opening of the largest shopping
by Janssen, Eeckhout, Gailly and Bacq            centre in the southern hemisphere based in
(2007). They use the model developed by          Soweto.
Fayolle (1999) which identifies three critical
areas or stages crucial for entrepreneurial         Davies (2004) concludes that “profes-
development. These are identified as;            sional or corporate careers are generally
   a. Mobilization programmes aimed at           held in greater esteem than business own-
   developing the entrepreneurial spirit         ership”. This emphasizes the importance of
   among budding entrepreneurs in society.       the first stage of mobilizing entrepreneur-
                                                 ship in South Africa.
   b. Entrepreneurial training programmes
   which aim at moulding intending en-              The second stage requirement is partly
   trepreneurs for the needed change in          explained from the conclusion made by
   entrepreneurial attitude and aptitude to      Davies (2004) above. This suggests that
   establish new ventures or develop new         entrepreneurial training programmes es-
   ways of creating additional wealth in         pecially in educational institutions should
   existing businesses. This is done mainly      be strong enough to make students have
   through educational programmes aimed          dreams of owning businesses as opposed to
   at giving students skills and entrepre-       being employed. Currently there is a ten-
   neurial abilities.                            dency for many faculties especially in the
   c. Entrepreneurial support programmes         sciences at universities to embrace this view
   (ESPs) tend to select students who            and hence not support the introduction of
   already have a business opportunity to        entrepreneurship skills training in their
   exploit and aim at giving personal            programmes.
   assistance and advice to exploit the
   opportunity.                                     Further, where some education institu-
                                                 tions have entrepreneurships departments,
This scenario is a useful typology for           these have tended to attract students with
developing entrepreneurship educational          low matric scores and these departments
programmes. However, their effectiveness         are seen as departments of last resort. There
in South Africa requires that attention be       is a need to effectively position
emphasised to rekindle the needed                entrepreneurship programmes in a number
entrepreneurial spirit, killed by apartheid      of universities in South Africa. This would
policies especially among blacks, which did      suggest offering unique programmes in
                                                 building entrepreneurs and not placing so

      6
much emphasis on numbers for the                    This model would be useful in the de-
programmes to be offered.                           velopment of an entrepreneurial mindset
                                                    starting from primary schools to higher
    The third point is that the identification      institutions of learning. This approach
of students should be a deliberate process          would revolutionalize the way entrepre-
and implemented in the early stages of the          neurship is taught and would make stu-
entrepreneurial development process. If             dents choose entrepreneurial careers as at-
this is not done a lot of students will be tak-     tractive as opposed to the low risk profes-
en on board and will be eliminated in the           sional paths. This would be the beginning
later stages. If selection happens in the early     of developing an entrepreneurial spirit in
stages, it will save resources as efforts will be   South Africa.
concentrated on people who want to take
the entrepreneurial route. Further, support            Another useful way of thinking of edu-
would be concentrated on these.                     cational programmes is the need for an
                                                    interdisciplinary approach in the entrepre-
The above suggests the need of considerable         neurial programmes suggested by Janssen et
efforts aimed at changing the attitude of           al (2007). Many universities education
society toward entrepreneurship and this is         providers have used the multi disciplinary
an aspect that can only be effectively              approach where several disciplines are com-
changed through the proper positioning of           bined to broaden the scope of learners. On
entrepreneurial development modules at all          the contrary, the interdisciplinary pedagogy
educational levels in South Africa. The             involves the opposite; it integrates disci-
model we propose in sections below will             plines. This is supported in the early works
deal with these aspects                             of Petrie (1992) and Campbell (1969) when
                                                    they argued that “…any interdisciplinary ap-
        Interesting
        Interesting international                   proach has to rely upon the disciplines in
   entrepreneurial education models                 order to ground its credibility”.

The first model presented in this paper                This model uses the principles of
posits that the most useful way of providing        integration, collaboration and synthesis
entrepreneurial education is to build indi-         which     emphasizes     teacher,  leaner,
viduals who are able to “dream and                  knowledge and processes pedagogy
organize themselves to make their dreams            propounded by Houssaye (1993) to assist in
come true”, (Filion and Dolabela (2007).            developing entrepreneurship. This provides
The      process   involves    fundamental          a better approach as it considers the
approaches necessary to transform societal          methodology used more than the content.
norms for entrepreneurial development for
members of society to portray autistic                 The significance of this approach in
behaviours related to having a collective,          South Africa is important as a lot of efforts
structuring and activity dreams (see Filion         have been given to the development of
and Dolabela (2007)).                               entrepreneurial programmes like the new
                                                    venture creation programme. However, this
In terms of classroom pedagogy students are         has not been very successful as the processes
asked two questions: What is your dream in          have been weak in the areas of the “doing
terms of what you want to become? What is           aspect”, the aftercare aspects during the
your project to make this dream come true?          business management and improvement
The entrepreneurial pedagogy methodology            stages and the processes usually poorly
(EPM) is suggested by Filion and Dolabela           managed.
(2007, 24).

      7
Role of Sector Education Training           after by students doing teacher training.
              Authorities                      The last problem is that materials are not
                                               available in many of the primary schools es-
Entrepreneurship education in South            pecially those in the rural areas.
Africa has a number of players including all
levels of education institutions. In           The importance of the principles of inte-
particular the government has attempted to     gration: teacher, leaner, knowledge and pro-
readdress the low levels of entrepreneurship   cesses are put to test in the South African
in     the    country     by     introducing   education system. In particular the pro-
entrepreneurship to form part of Economic      cesses in managing the system would need
Management Sciences from grades three up       serious considerations for education to be
to 9 in primary schools.                       an effective vehicle for the cultivation of an
                                               entrepreneurial spirit among the youth in
Shay and Wood (2005) report three              South Africa.
problems in teaching entrepreneurship
programmes in schools. The first problem       Other important players in entrepre-
relates to apathy and as a result many         neurship education are universities, South
schools do not include entrepreneurship in     African Institute for Entrepreneurship and
their curricula. Secondly, they point out      the Foundation for Enterprise and Business
that there is a paucity of suitable teachers   Development. In the GEM report of 2005,
who can teach entrepreneurship. It seems       these business venture programmes are fa-
that entrepreneurship is regarded as an un-    vourably reviewed.
important teaching subject and not sought




      8
The larger challenge of skills training in    thinking is the technical skills for workers
South Africa rests with the SETAs. The ac-        and not entrepreneurial skills.
cepted role of SETAs is not usually seen as
support developing entrepreneurship but to        Table 1 above shows the typical training
address the skills problems inherited from        programmes in one of the SETAs. What is
the apartheid regime. It is only through the      prominent to note is the wide range of
new venture creation learnerships that en-        programmes offered. This paper argues that
trepreneurial training is seen to be sported      entrepreneurial education should be
by the SETAs. Further, the SETAs support          underpinned in the learnerships and the
the SME levy payers to transfer shills but        structured learning programmes offered by
little, if any, entrepreneurial development is    SETAs. To some extent new venture cre-
seems to be done.                                 ation has been used by the SETAs on a
                                                  pilot basis with no encouraging results and
   The National Skills Development                yet the Global Enterprise Monitor reports
Strategy (NSDS) was drafted by the                success in the new venture programmes
Department of Labour to guide the efforts         used at schools developed by SAIE and
of government in addressing the human             FEBDEV.
resource capacity problems inherited from
the apartheid regime. The mission of the          In terms of challenges faced in implement-
NSDS is,                                          ing the skills development programmes, the
                                                  results show a number of issues raised as
   “To equip South Africa (ns) with the           follows below.
   skills to succeed in the global market and
   to offer opportunities to individuals and         • Forty two percent saw no challenges in
   communities for self-advancement to
                                                     implementing skills development pro-
   enable them to play a productive role in
                                                     grammes
   society”. This entails that people in places
   of work contribute to and make their own          • Fifteen percent mention cost factors
   decisions about their place of work. This         as an impediment. These costs related to
   in essence should be regarded as building
                                                     training staff who would then leave the
   intrapreneurship and entrepreneurs
   within South African companies.                   firm or become too expensive to retain;
                                                     too small to do training (time) and to
    This paper posits that the SETAs have            bear the administrative burdens.
tended to regard skills training to mean             • With industry manuals not available,
technical training for workers. This blurs           firms are not sure of courses to put staff
their focus as being facilitators to make            on. It was also pointed that some of the
South African enterprises be more pro-               unit standards are not applicable to the
ductive and being more competitive in the            industry. (11%)
global village. This would not happen if the
entrepreneurs do not receive the appropri-           • The third problem was mentioned by
ate receive inappropriate to start, maintain         9% of the firms who felt that the bad
and grow their enterprises. Entrepreneurial          communication with the SETA made it
education should be encouraged and open-             difficult to know areas to target for skills
ly supported by SETAs.                               development.
                                                  • Seven percent reported that trainees in
Further, many SETAs have identified the             cases are not interested to be trained
support of small and medium enterprise
levy payers as an important target group to
assist in skills transfers. Again the common

      9
• Six percent mentioned problems of
   company       culture,    impact  of
   HIV/AIDS, lack of management
   support, organizational demands and
   cultural issues as problems.
Other issues which emerge as challenges
include the following:
   The level of structured industry
   training is low in South Africa as
   compared to the other trading
   partners
   • Expenditure on skills development
   in the critical sectors, which promise
   future growth and employment, is
   low, especially among the SMEs.
   • In most industries training has
   remained very informal and at a very
   superficial level, with most lower level
   workers not empowered. This trend
   will need to be addressed as it
   perpetuates the apartheid legacy.
• There is a failure by many companies
  especially SMEs to recognize the
  importance of training within the
  immediate and external environment
  for training to be integrated in
  company strategic objectives.
• There is a shortage of high quality
  management
• Skills development programmes do
  not seem to be demand driven, i.e.
  taking place within a job related
  framework
• Some of the training programmes are
  ill conceived and too short for the
  desired impact
• Entrepreneurial training has always
  been sacrificed for technical training
• Women and the physically challenged
      continue to be marginalized.
Table 1 Common Skills Programmes offered




    10
Work Skills Programme           Learnerships                      Structured Learning
General skills                  General skills                    General skills
Sales training                  TTI programme                     Management & strategic
                                                                  management courses
Supply chain management         Sales training                    Book keeping and financial
                                                                  management
Customer service                General travel and business       HR, LLB, B. Com
                                travel
Induction training              Performance management            Induction courses
Telephone techniques            Process skills                    In all functional areas, IT,
                                                                  Excel etc
Security                        Computer training                 Presentation skills
Policies and procedures         Health and occupation and         Customer care, business
training                        safety                            awareness
Industrial relations and        HIV/AIDS awareness                ABET
supervisory skills
Health and safety and HIV/AIDS                    Management development courses, industrial
                                                  relations
Motivational training                             Supervisory training
Specific skills                 Specific skills                   Specific skills
Accommodation services          Chef and customer care            Waiter programmes
provision and house keeping
Food preparation and front      Waiter training                   Semi skilled kitchen course
office
Waiter training                 Technical training in cookery,    Hotel management, cooking
                                Hospitality, Food, drink and
                                Beverage services
Computerised reservation        Accommodation services            Tourism courses
systems like Galileo, Amadeus
Specific product training                         Occupational Health and Safety
Green keeping, technical                          Child minding
Driving
 Mobilization: Developing culture of dreamers                      entrepreneurial mindset is created among levy
 and using entrepreneurship to meet dreams.                        payers. Most important is to re position the support
                                                                   to levy payers to give prominence to entrepreneurial
The first stage involves the creation of the right                 skills transfer as opposed to technical skills training
mind set for the development of entrepreneurship                   offered to workers only.
in South Africa. We call this the ontology stage in
that it aims at defining the desired state of being by             To support the SETAs, the education system at all
members of society. This will involve developing the               levels needs to be supported so that entrepreneurial
entrepreneurial dreams and defining how these will                 education receives the desired status for materials to
be achieved through well articulated entrepreneurial               be supplied and teachers trained as content and
activities.                                                        process managers. Later, we shall argue for partner-
                                                                   ships to be established between SETAs and
    This stage will also require the cultivation of                educational institutions including public and
fertile ground for the development of entrepreneurs                private; a strategy which is long overdue. This will
through conceited Adult Basic Education and                        require that the SETAs operate in an effective
Training (ABET) programmes. Without this, phase                    business manner in this partnership. The current
two becomes a problem to implement. All skills                     problems identified in terms of capacity and
development efforts by levy payers, including                      operational problems need to be ironed out
government departments, need to implement ABET                     (Department of Labour (2006)).
as the first priority. SETAs have a role to play in this
regard and their efforts should be continued and                    From being dreamers to visioning the dreams
enhanced.
                                                                   The second phase is more concerned with
Further, the role of mobilization will have to be                  epistemology, that is, the content of imparting
performed by the SETAs to ensure that the right                    entrepreneurial skills through the use of appropriate

    11
methodologies. Two revolutionary methodologies             National Empowerment Fund, Umusobomvu Youth
are suggested, first the integration paradigm and the      Fund, the local government economic development
EPM. If these methodologies are recommended the            agencies like Gauteng Enterprise Propeller,
educational institutions and SETAs through                 Ethekwini Local Business Development Service
learnerships, skills to support behaviour for dream        Agency etc.
realization, support knowledge pillars erected from
various disciplines to mould the entrepreneurial                     SUMMARY
                                                                     SUMMARY AND CONCLUSIONS
students to be able to know what to do and learn
through doing thereby being able to hoard                                   Recommendations
experience.
                                                           Therefore, the real challenge is to build inter-
    The SETA learnerships are best suited for this         disciplinary approaches, making entrepreneurship
stage and the suggested role is for them to move           education accessible to all students, and where
closer and partner with levy payers for market driven      appropriate creating teams for the development and
learnerships to be implemented. Most importantly,          exploitation of business ideas, mixing students from
epistemology would suggest that attention be paid to       economic and business studies with students from
the trainers, selection of learners, providing the right   other faculties and with different backgrounds.
knowledge and being able to manage the process.
This is a big challenge for the SETAs and effective        Innovation and effectiveness stem primarily from
strategies are needed through joint design processes       action-oriented and student-inclusive teaching
where a few selected partners are used for consulta-       forms, teaching students “how to” so that they can
tions to develop process that will work.                   understand the more theoretical aspects more easily,
                                                           involving students heavily and actively in the
    Continued effective support services for               learning process, and involving “outsiders” in the
                entrepreneurs                              learning process. The people doing the teaching
                                                           should be to some extent entrepreneurs themselves,
The above stages point out that entrepreneurship           building their input on real-life experience. Crossing
can be learned and useful methods are needed and           the boundary of the university and the world
these are suggested. The tendency of government            outside is one of the reasons why such teaching is
departments to stick to old methods of doing things        often experienced by the students as very different
is a far cry for needed social intrapreneurship. This      from the traditional teaching experience in higher
will entail that government officers be innovate to        education.
find new and better ways of meeting their noble
objectives, in this case developing entrepreneurs in          Professors should have a background in
South Africa.                                              academia, and recent experience in business, such as
                                                           in consulting for, or initiating, entrepreneurial
   This stage posits that the new entrepreneurial          initiatives. Ideally they should maintain strong
“animal” should not be left alone in a hostile             personal links with the business sector. The best
business environment. There is a need of support           professors are teachers who have the required
services in access to finance for short, medium and        teaching competences as well as real professional
long term capital gearing, technology transfer to im-      experience in the private sector. For those with no
prove quality of products, market linkages and             experience in the private sector, specific teaching
development to tap bigger and better local and             modules should be integrated into the curriculum of
export markets and the continued coaching and              future professors, such as “How to devise and teach
counselling to ensue that the acquired knowledge           a case study”.
achieves grounded integrity. Many times, learners
have reported that after effective SETA supported                Supporting students’ business ideas
training interventions, they were left alone and
could not consult any one when problems arose and          A distinction needs to be made between awareness
in most situations this made them to revert back to        raising and education, and actual business support.
the old way of doing things.                               This Report focuses primarily on building awareness
                                                           and on offering education programmes, courses and
It is recommended that the SETAs closely work with         activities. The emphasis is on creating the
other government agencies for an effective roll out        entrepreneurial mindsets and capacity. Support for
of entrepreneurial support services. These govern-         university spin-offs is a vast and complex issue, for
ment agencies would include the Small Enterprise           which a specific Expert Group would need to be
Development Agency, Khula and the South Micro              created. Moreover, the concept of innovative spin-
Finance Fund, the Industrial Development Agency,           offs is not particularly relevant for businesses started

    12
by students, who do not have formal links with the       phase of the National Skills Development Plan,
university. It seems therefore more appropriate to       South Africa would have a cadre of highly skilled
speak of innovative, knowledge-based businesses          people with few people to drive the enterprises.
launched by students and university graduates. Such
students would benefit from dedicated advisory and          This study concludes that the SETAs need to re-
support programmes.                                      examine their role to take up the challenge of
                                                         developing entrepreneurs and collaborating with
   Efforts of increasing entrepreneurial activity in     other government departments to provide the
most African developed countries have not used           needed support services. The erection of Silos
appropriate methods to realize the contribution of       around government departments has done more
entrepreneurship to economic development. Most           harm than good for entrepreneurs.
of these countries still face unemployment
problems.                                                   A model has been suggested for an integrated
                                                         approach to be used by government at each of the
This study has explored the nature of en-                stages. For this model to work a coordinating
trepreneurial development by first looking at the        committee has to be established to ensure alignment
complexity of the unit of analysis entrepreneurship.     of programmes to reduce duplication.
This complexity on the nature of things to be done
in entrepreneurships has suggested the need for well
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    14

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African entrepreneurship in south africa seta

  • 1. African Entrepreneurship in Global Contexts Copyright © 2010 WASD 1 FOSTERING ENTREPRENEURSHIP EDUCATION IN SOUTH AFRICA: THE ROLE OF SECTOR EDUCATION TRAINING AUTHORITIES (SETA) Kachesa E Bbenkele and Alain A. Ndedi University of Johannesburg, South Africa Abstract: Programmes which aim at developing entrepreneurship are numerous in South Africa but tangible results are difficult to see, if any, as unemployment is still high. The reasons are twofold: either there are not many new enterprises that are being created or there is insufficient growth that is taking place within existing enterprises. The present study investigates some of the interventions which have been introduced by the South African government through its various agencies to support entrepreneurship and points out the challenges they face, namely policy development, operational and pedagogic impediments. A simple model is suggested for development of entrepreneurship training and suggests roles to be played by the Sector Education Training Authorities (SETAs) and other development agencies. Keywords: Entrepreneurship Education, South Africa, Employment. who saw him as a person who does things INTRODUCTION “that are not generally done in the ordinary course of business routine. He is an ideas The interdependence of economic develop- man and a man of action who possesses the ment and socio-political change is generally ability to inspire others and who does not recognized by social scientists (Adelman accept the boundaries of structured situa- and Morris, 1965). Entrepreneurship is tions, the creative destructor”. Say (1803; considered to be an important mechanism 1996) furthered the work of Schumpeter for economic development through and distinguished the entrepreneur and the employment, innovation, and welfare capitalist and further linked the entrepre- effects (Wennekers and Thurik, 1999; neurs and saw them as agents of change. Baumol, 2002). The importance of developing entrepreneurship to contribute De Vries (1977) describes the entrepre- to economic development has been widely neur as “an individual often inconsistent recognised. and confused about his motives, desires and wishes, a person under a lot of stress However, Orford Herrington and Wood who often upsets us by his or her seemingly (2004) caution that though this is a widely ‘irrational’ impulsive activities”. This held desire, entrepreneurship is poorly un- positioning is behavioural and useful when derstood. This poor understanding is also we consider efforts aimed at supporting and from the fact that the “animal” usually re- developing entrepreneurs. This also ferred to as the entrepreneur, is more com- suggests the difficult of providing assistance plex that the way described by the classical or support to entrepreneurs. Indeed, many economists like Schumpeter (1931, 1934) countries have been implementing many 1
  • 2. programmes and spending a lot of money is pushed into entrepreneurship because they establishing institutions around this and no have no other means of making a living and tangible benefits have been realised by are unemployed. For those who are pulled many. to entrepreneurship, two major drivers of opportunity entrepreneurship can be identi- In simple terms, Antonites (2003) de- fied: those who are pulled primarily because fines an entrepreneur as an individual with they desire independence, and those who the potential to create a vision from virtu- are primarily pulled to entrepreneurship ally nothing. Timmons (1994, 7) regards because they want to increase their income the process of entrepreneurship as follows: as compared to, for instance, being an em- ployee. The remaining share includes peo- Entrepreneurship is creating and build- ple who maintain that they have no other ing something of value from practically way of earning a living (necessity-motivated nothing; a human creative act. It involves entrepreneurs) and people who became in- finding personal energy by initiating and volved in entrepreneurial activity primarily building an enterprise or organisation, rath- to maintain their income. er than by just watching, analyzing, or de- scribing one. It requires vision and passion, The Total Entrepreneurial Activity index commitment, and motivation to transmit (TEA) for South Africa was 5.4% in 2004 this vision to other stakeholders. and this placed it in the 24th position out of the 34 countries in the GEM studies. This This chapter investigates the challenges is lower than the ETA of other developing which government and other agencies face countries. However, the creation of new in developing entrepreneurship in South business should not be overemphasised as Africa. The policies and strategies used are not all businesses which are created survive discussed and an approach suggested. The and grow for them to contribute to national value of the paper is in guiding policy mak- economic development through wealth cre- ers on how best to build entrepreneurship ation. What the TEA index reveals is the in South Africa for the needed contribution low level of creation of new enterprises in to economic growth. South Africa. For more entrepreneurs to be developed there is a need to deal with the three forces mentioned above which influ- THE THOERETICAL FRAMEWORK ence entrepreneurial behaviour through ef- fective training interventions. If entrepreneurship is understood to be based on the needed behavioural patterns This section explores the theories which which are influenced by social, economic underpin entrepreneurial education and and psychodynamic forces, any attempts development approaches necessary to deal aimed at supporting entrepreneurs should with the complex personality of the entre- recognize these forces and develop effective preneur which if effective would lead to interventions to increase the total entrepre- increased creation of new enterprises and neurial activity in South Africa. Orford et al their growth. Education theories are used (2004) in their Global Monitor Report here because there is a need to change the define entrepreneurial activity as the rate at attitude and out look of people in society which a nation creates new businesses. for entrepreneurial activities to take place, There are many reasons motivating this pos- and has the potential to do this education if ture is multiple. Although most individuals done correctly. This is supported by the are pulled into entrepreneurial activity be- Shay and Wood (2005) when they assert cause of opportunity recognition, others are that, “The education system plays an im- 2
  • 3. portant role in developing entrepreneurial have the skills to start a new business is sig- skills and sharing attitudes in several ways”. nificantly lower than that in other develop- ing countries like Argentina etc.”Wood This is also supported in the work on (2004) supports the concept of entrepreneur by Dolabela (1999) who define it as “ a state of being – a The various definitions point out the lifestyle, … a way of thinking, an orientation complexity of an entrepreneur and the fact towards innovation and a capacity to pro- that entrepreneurship can be learned and duce changes in one self, the environment its development in a country like South and the means of seeking self actualization, Africa can be supported. It is how this including reaction patterns to ambiguities learning is conducted and the nature of the and uncertainties”. support structures which will determine impact made in the creation of Other authors like Timmons (2004) and entrepreneurship. The following section de- Shane (2003) have described an entrepre- velops entrepreneurship education. neur as someone who is able to identify, seize and take advantage of opportunities, Entrepreneurial Education searching for and managing resources so as to transform opportunities into successful Entrepreneurship education seeks to pro- business”. This understanding describes the vide students with the knowledge, skills and entrepreneurs as a sophisticated person and motivation to encourage entrepreneurial aptly supported by higher levels of thinking success in a variety of settings. A strategy for which only education can provide. entrepreneurship in education is a strategy to strengthen the individual’s ability to see However, the later works of Filion (1991) and exploit opportunities in an economic, did not help much as describing the entre- social and cultural context. preneur as a complexity animal. He takes a Entrepreneurship in education includes system approach and looks at an entrepre- development both of personal qualities and neur as, “...someone who imagines, attitudes and of formal knowledge and develops and realizes visions”, a person who skills, together these two main elements will defines contexts. From this underpinning give pupils/students competence in emerged the school of thought which entrepreneurship. Personal qualities and looked at entrepreneurial development as a attitudes increase the probability of a process of preparing someone to develop person seeing opportunities and doing higher cognitive skills to be able to design something about them. Work on en- contexts. Hence, it is argued that trepreneurship in education must primarily entrepreneurial education is important as it place emphasis on development of personal equips one with a feeling of autonomy, qualities and attitudes. In that way a basis is independence or self confidence which are laid for later utilization of knowledge and all important aspects in starting a business. skills in active value creation. Knowledge and skills concerning what must be done to Apparently, the apartheid educational establish a new enterprise, and how to be policies did not allow this to take place es- successful in developing an idea into a prac- pecially amongst Africans. The legacy still tical, goal-oriented enterprise. (European seems to linger on sixteen years after the Commission, 2006) new political dispensation. The work of Shay and Wood (2005) supports this when Entrepreneurship in education includes they report that “The proportion of young development both of personal qualities and people in South Africa who believe they attitudes and of formal knowledge and 3
  • 4. skills that will give students competence in toward entrepreneurship, innovation entrepreneurship. Personal qualities and at- and reorientation requires that teachers titudes increase the probability of a person have knowledge of this. It is therefore seeing opportunities and doing something important to focus on entrepreneurship to transform them into reality. Work on en- in teacher training, and also provide trepreneurship in education must primarily courses in competence development to place emphasis on development of personal working teachers. qualities and attitudes. In that way a basis is 4. The attitudes of school-owners and laid for later utilisation of knowledge and school managers: School-owners must skills in active value creation. (Ndedi and follow up the focus on entrepreneurship Ijeoma, 2008) Knowledge and skills in curricula and management docu- concerning what must be done to establish ments, and build competence and in- a new enterprise, and how to be successful sight among school managers. in developing an idea into a practical, goal- oriented enterprise. It is important that educational institutions are given legitimacy and motivation to work According to ODEP (2009), in order to be on entrepreneurship. School managers able to concentrate on the objectives of must be able to follow up, encourage and entrepreneurship in the education system, motivate teachers to be good role models there are four factors that apply to all levels and disseminators of knowledge. Both of the education system: school-owners and school managers must take the initiative in collaborating with the 1. Entrepreneurship as an integrated business sector and other agencies in the part of instruction: Entrepreneurship municipality. To successfully address un- must be defined as an objective in employment across youth people, certain education, and be included in the things need to be developed regarding the instruction strategy. training of potential entrepreneurs through 2. Collaboration with the local tertiary institutions. Entrepreneurship community: Instruction in education is a common course of study in entrepreneurship requires close higher education settings. A wide variety of collaboration between schools and the curricular approaches exist, though many local business and social sector. There is common elements are found across institu- therefore a need for more arenas for tions and settings. These texts and contact between educational institutions programs must be structured to introduce and various players in society. In such the concept of entrepreneurship and arenas educational institutions and the provide hands-on experience and working local social and business sectors will get models for students to develop skills as to know one another better, and cultural entrepreneurs. The principles of barriers may be dismantled. entrepreneurship must be considered valuable for students at all levels. This will result in mutual benefit inas- much as it will increase the quality and In response to the rapidly changing na- relevance of education and strengthen tional landscape, not only of high unem- recruitment to the local business sector ployment but more generally of economic and development of competence. growth and job creation, entrepreneurship 3. Teachers’ competence: Teachers are is being increasingly emphasized as a critical important role models. A positive resource. Timmons and Spinelli (2007) attitude among young people in schools recognise that there is no substitute for ac- 4
  • 5. tually starting a company, but it is possible In summary, Entrepreneurship education to expose students in all fields to many of seeks to prepare people, particularly youth, the vital issues and immerse them in key to be responsible, enterprising individuals learning experiences through cases studies who become entrepreneurs or en- of successful entrepreneurs. Concerning trepreneurial thinkers by immersing them this point on students’ capacity building in in real life learning experiences where they entrepreneurship, a multi-sectoriel policy, can take risks, manage the results, and learn going from higher education institutions to from the outcomes (ODEP, 2009) centres of training, is needed. For a long period of time, many graduates in all fields DATA AND METHODOLOGY of study were not trained in entrepreneur- ship. However, many universities are en- The approach used to collect data for the gaged in various programmes dealing to fill paper was twofold; first desk research was this gap on training of potential entrepre- conducted on selected work both local and neurs. The courses included entrepreneur- international in the area of entrepreneurial ship and small business management, inno- education. This was done to select a best vation and creativity, opportunity recogni- practice in education programmes aimed at tion and business plans. These courses are developing entrepreneurs. aimed in developing and unleashing gradu- ates’ expertise about entrepreneurship. As it Review of critiques on the current train- has always emphasized in the case of US, ing programmes in entrepreneurial educa- the proliferation of entrepreneurs was as- tion was also conducted especially in the sociated with the emergence of centres and new venture creation programme. higher education institutions specialised in Documents from the department of labour entrepreneurship. were also used as a good resource to identify the work being done by the Sector Henry, Hill and Leitch (2003: 12) point out Education Training Authorities and other that entrepreneurship training can com- government agencies. As expected, this plement the early stage awareness-raising source of information was not very good in function of entrepreneurship education, as identifying problems faced so far as it was it provides the more practical skills that not critical. entrepreneurs require when they are ready to set up their business. Ladzani and Van The second source of information was Vuuren (2002: 156) state that organisations information collected from empirical inves- wishing to develop entrepreneurship educa- tigations on the impact made by the various tion presuppose that the lack of training of SETAs in supporting small, medium and entrepreneurs is the main reason for micro enterprises (SME) levy payers in skills venture failure. In the same line, Pretorius, development. The SETAs are not identified Nieman and Van Vuuren (2005: 424) add but whatever is mentioned is common to that the transfer of the requisite knowledge many of them. and skills is the easiest part of training and is incorporated in most training In addition to the information from programmes on entrepreneurship. SETAs, data is also used from impact assess- However, the behaviour to engage in the ment studies conducted for the start-up process is what really matters and is Department of Trade and Industry and what is lacking in most entrepreneurship Department of Science and Technology. programmes. RESULTS 5
  • 6. This section first presents the interesting not allow blacks to owning and running models which have been suggested in de- businesses. veloping entrepreneurship and an analysis is made on how useful these could be to As a result of the historical past, Shay and South Africa. The current approaches in Wood (2005) propose that the low rate of entrepreneurial development are then entrepreneurial activity in South Africa is presented and a suggestion made on a pos- due to most South Africans not having a sible new approach. “…belief in their own ability to start a busi- ness…”. At this stage, it is suggested that ed- Crucial activities for entrepreneurial ucational programmes would need to open development and change mindsets for students by providing an environment where successful Before the various models are presented, a entrepreneurs receive wide recognition as is useful scenario to use in reviewing entrepre- the present case of Mr. Richard Maphonya2 neurial education programmes is suggested with his opening of the largest shopping by Janssen, Eeckhout, Gailly and Bacq centre in the southern hemisphere based in (2007). They use the model developed by Soweto. Fayolle (1999) which identifies three critical areas or stages crucial for entrepreneurial Davies (2004) concludes that “profes- development. These are identified as; sional or corporate careers are generally a. Mobilization programmes aimed at held in greater esteem than business own- developing the entrepreneurial spirit ership”. This emphasizes the importance of among budding entrepreneurs in society. the first stage of mobilizing entrepreneur- ship in South Africa. b. Entrepreneurial training programmes which aim at moulding intending en- The second stage requirement is partly trepreneurs for the needed change in explained from the conclusion made by entrepreneurial attitude and aptitude to Davies (2004) above. This suggests that establish new ventures or develop new entrepreneurial training programmes es- ways of creating additional wealth in pecially in educational institutions should existing businesses. This is done mainly be strong enough to make students have through educational programmes aimed dreams of owning businesses as opposed to at giving students skills and entrepre- being employed. Currently there is a ten- neurial abilities. dency for many faculties especially in the c. Entrepreneurial support programmes sciences at universities to embrace this view (ESPs) tend to select students who and hence not support the introduction of already have a business opportunity to entrepreneurship skills training in their exploit and aim at giving personal programmes. assistance and advice to exploit the opportunity. Further, where some education institu- tions have entrepreneurships departments, This scenario is a useful typology for these have tended to attract students with developing entrepreneurship educational low matric scores and these departments programmes. However, their effectiveness are seen as departments of last resort. There in South Africa requires that attention be is a need to effectively position emphasised to rekindle the needed entrepreneurship programmes in a number entrepreneurial spirit, killed by apartheid of universities in South Africa. This would policies especially among blacks, which did suggest offering unique programmes in building entrepreneurs and not placing so 6
  • 7. much emphasis on numbers for the This model would be useful in the de- programmes to be offered. velopment of an entrepreneurial mindset starting from primary schools to higher The third point is that the identification institutions of learning. This approach of students should be a deliberate process would revolutionalize the way entrepre- and implemented in the early stages of the neurship is taught and would make stu- entrepreneurial development process. If dents choose entrepreneurial careers as at- this is not done a lot of students will be tak- tractive as opposed to the low risk profes- en on board and will be eliminated in the sional paths. This would be the beginning later stages. If selection happens in the early of developing an entrepreneurial spirit in stages, it will save resources as efforts will be South Africa. concentrated on people who want to take the entrepreneurial route. Further, support Another useful way of thinking of edu- would be concentrated on these. cational programmes is the need for an interdisciplinary approach in the entrepre- The above suggests the need of considerable neurial programmes suggested by Janssen et efforts aimed at changing the attitude of al (2007). Many universities education society toward entrepreneurship and this is providers have used the multi disciplinary an aspect that can only be effectively approach where several disciplines are com- changed through the proper positioning of bined to broaden the scope of learners. On entrepreneurial development modules at all the contrary, the interdisciplinary pedagogy educational levels in South Africa. The involves the opposite; it integrates disci- model we propose in sections below will plines. This is supported in the early works deal with these aspects of Petrie (1992) and Campbell (1969) when they argued that “…any interdisciplinary ap- Interesting Interesting international proach has to rely upon the disciplines in entrepreneurial education models order to ground its credibility”. The first model presented in this paper This model uses the principles of posits that the most useful way of providing integration, collaboration and synthesis entrepreneurial education is to build indi- which emphasizes teacher, leaner, viduals who are able to “dream and knowledge and processes pedagogy organize themselves to make their dreams propounded by Houssaye (1993) to assist in come true”, (Filion and Dolabela (2007). developing entrepreneurship. This provides The process involves fundamental a better approach as it considers the approaches necessary to transform societal methodology used more than the content. norms for entrepreneurial development for members of society to portray autistic The significance of this approach in behaviours related to having a collective, South Africa is important as a lot of efforts structuring and activity dreams (see Filion have been given to the development of and Dolabela (2007)). entrepreneurial programmes like the new venture creation programme. However, this In terms of classroom pedagogy students are has not been very successful as the processes asked two questions: What is your dream in have been weak in the areas of the “doing terms of what you want to become? What is aspect”, the aftercare aspects during the your project to make this dream come true? business management and improvement The entrepreneurial pedagogy methodology stages and the processes usually poorly (EPM) is suggested by Filion and Dolabela managed. (2007, 24). 7
  • 8. Role of Sector Education Training after by students doing teacher training. Authorities The last problem is that materials are not available in many of the primary schools es- Entrepreneurship education in South pecially those in the rural areas. Africa has a number of players including all levels of education institutions. In The importance of the principles of inte- particular the government has attempted to gration: teacher, leaner, knowledge and pro- readdress the low levels of entrepreneurship cesses are put to test in the South African in the country by introducing education system. In particular the pro- entrepreneurship to form part of Economic cesses in managing the system would need Management Sciences from grades three up serious considerations for education to be to 9 in primary schools. an effective vehicle for the cultivation of an entrepreneurial spirit among the youth in Shay and Wood (2005) report three South Africa. problems in teaching entrepreneurship programmes in schools. The first problem Other important players in entrepre- relates to apathy and as a result many neurship education are universities, South schools do not include entrepreneurship in African Institute for Entrepreneurship and their curricula. Secondly, they point out the Foundation for Enterprise and Business that there is a paucity of suitable teachers Development. In the GEM report of 2005, who can teach entrepreneurship. It seems these business venture programmes are fa- that entrepreneurship is regarded as an un- vourably reviewed. important teaching subject and not sought 8
  • 9. The larger challenge of skills training in thinking is the technical skills for workers South Africa rests with the SETAs. The ac- and not entrepreneurial skills. cepted role of SETAs is not usually seen as support developing entrepreneurship but to Table 1 above shows the typical training address the skills problems inherited from programmes in one of the SETAs. What is the apartheid regime. It is only through the prominent to note is the wide range of new venture creation learnerships that en- programmes offered. This paper argues that trepreneurial training is seen to be sported entrepreneurial education should be by the SETAs. Further, the SETAs support underpinned in the learnerships and the the SME levy payers to transfer shills but structured learning programmes offered by little, if any, entrepreneurial development is SETAs. To some extent new venture cre- seems to be done. ation has been used by the SETAs on a pilot basis with no encouraging results and The National Skills Development yet the Global Enterprise Monitor reports Strategy (NSDS) was drafted by the success in the new venture programmes Department of Labour to guide the efforts used at schools developed by SAIE and of government in addressing the human FEBDEV. resource capacity problems inherited from the apartheid regime. The mission of the In terms of challenges faced in implement- NSDS is, ing the skills development programmes, the results show a number of issues raised as “To equip South Africa (ns) with the follows below. skills to succeed in the global market and to offer opportunities to individuals and • Forty two percent saw no challenges in communities for self-advancement to implementing skills development pro- enable them to play a productive role in grammes society”. This entails that people in places of work contribute to and make their own • Fifteen percent mention cost factors decisions about their place of work. This as an impediment. These costs related to in essence should be regarded as building training staff who would then leave the intrapreneurship and entrepreneurs within South African companies. firm or become too expensive to retain; too small to do training (time) and to This paper posits that the SETAs have bear the administrative burdens. tended to regard skills training to mean • With industry manuals not available, technical training for workers. This blurs firms are not sure of courses to put staff their focus as being facilitators to make on. It was also pointed that some of the South African enterprises be more pro- unit standards are not applicable to the ductive and being more competitive in the industry. (11%) global village. This would not happen if the entrepreneurs do not receive the appropri- • The third problem was mentioned by ate receive inappropriate to start, maintain 9% of the firms who felt that the bad and grow their enterprises. Entrepreneurial communication with the SETA made it education should be encouraged and open- difficult to know areas to target for skills ly supported by SETAs. development. • Seven percent reported that trainees in Further, many SETAs have identified the cases are not interested to be trained support of small and medium enterprise levy payers as an important target group to assist in skills transfers. Again the common 9
  • 10. • Six percent mentioned problems of company culture, impact of HIV/AIDS, lack of management support, organizational demands and cultural issues as problems. Other issues which emerge as challenges include the following: The level of structured industry training is low in South Africa as compared to the other trading partners • Expenditure on skills development in the critical sectors, which promise future growth and employment, is low, especially among the SMEs. • In most industries training has remained very informal and at a very superficial level, with most lower level workers not empowered. This trend will need to be addressed as it perpetuates the apartheid legacy. • There is a failure by many companies especially SMEs to recognize the importance of training within the immediate and external environment for training to be integrated in company strategic objectives. • There is a shortage of high quality management • Skills development programmes do not seem to be demand driven, i.e. taking place within a job related framework • Some of the training programmes are ill conceived and too short for the desired impact • Entrepreneurial training has always been sacrificed for technical training • Women and the physically challenged continue to be marginalized. Table 1 Common Skills Programmes offered 10
  • 11. Work Skills Programme Learnerships Structured Learning General skills General skills General skills Sales training TTI programme Management & strategic management courses Supply chain management Sales training Book keeping and financial management Customer service General travel and business HR, LLB, B. Com travel Induction training Performance management Induction courses Telephone techniques Process skills In all functional areas, IT, Excel etc Security Computer training Presentation skills Policies and procedures Health and occupation and Customer care, business training safety awareness Industrial relations and HIV/AIDS awareness ABET supervisory skills Health and safety and HIV/AIDS Management development courses, industrial relations Motivational training Supervisory training Specific skills Specific skills Specific skills Accommodation services Chef and customer care Waiter programmes provision and house keeping Food preparation and front Waiter training Semi skilled kitchen course office Waiter training Technical training in cookery, Hotel management, cooking Hospitality, Food, drink and Beverage services Computerised reservation Accommodation services Tourism courses systems like Galileo, Amadeus Specific product training Occupational Health and Safety Green keeping, technical Child minding Driving Mobilization: Developing culture of dreamers entrepreneurial mindset is created among levy and using entrepreneurship to meet dreams. payers. Most important is to re position the support to levy payers to give prominence to entrepreneurial The first stage involves the creation of the right skills transfer as opposed to technical skills training mind set for the development of entrepreneurship offered to workers only. in South Africa. We call this the ontology stage in that it aims at defining the desired state of being by To support the SETAs, the education system at all members of society. This will involve developing the levels needs to be supported so that entrepreneurial entrepreneurial dreams and defining how these will education receives the desired status for materials to be achieved through well articulated entrepreneurial be supplied and teachers trained as content and activities. process managers. Later, we shall argue for partner- ships to be established between SETAs and This stage will also require the cultivation of educational institutions including public and fertile ground for the development of entrepreneurs private; a strategy which is long overdue. This will through conceited Adult Basic Education and require that the SETAs operate in an effective Training (ABET) programmes. Without this, phase business manner in this partnership. The current two becomes a problem to implement. All skills problems identified in terms of capacity and development efforts by levy payers, including operational problems need to be ironed out government departments, need to implement ABET (Department of Labour (2006)). as the first priority. SETAs have a role to play in this regard and their efforts should be continued and From being dreamers to visioning the dreams enhanced. The second phase is more concerned with Further, the role of mobilization will have to be epistemology, that is, the content of imparting performed by the SETAs to ensure that the right entrepreneurial skills through the use of appropriate 11
  • 12. methodologies. Two revolutionary methodologies National Empowerment Fund, Umusobomvu Youth are suggested, first the integration paradigm and the Fund, the local government economic development EPM. If these methodologies are recommended the agencies like Gauteng Enterprise Propeller, educational institutions and SETAs through Ethekwini Local Business Development Service learnerships, skills to support behaviour for dream Agency etc. realization, support knowledge pillars erected from various disciplines to mould the entrepreneurial SUMMARY SUMMARY AND CONCLUSIONS students to be able to know what to do and learn through doing thereby being able to hoard Recommendations experience. Therefore, the real challenge is to build inter- The SETA learnerships are best suited for this disciplinary approaches, making entrepreneurship stage and the suggested role is for them to move education accessible to all students, and where closer and partner with levy payers for market driven appropriate creating teams for the development and learnerships to be implemented. Most importantly, exploitation of business ideas, mixing students from epistemology would suggest that attention be paid to economic and business studies with students from the trainers, selection of learners, providing the right other faculties and with different backgrounds. knowledge and being able to manage the process. This is a big challenge for the SETAs and effective Innovation and effectiveness stem primarily from strategies are needed through joint design processes action-oriented and student-inclusive teaching where a few selected partners are used for consulta- forms, teaching students “how to” so that they can tions to develop process that will work. understand the more theoretical aspects more easily, involving students heavily and actively in the Continued effective support services for learning process, and involving “outsiders” in the entrepreneurs learning process. The people doing the teaching should be to some extent entrepreneurs themselves, The above stages point out that entrepreneurship building their input on real-life experience. Crossing can be learned and useful methods are needed and the boundary of the university and the world these are suggested. The tendency of government outside is one of the reasons why such teaching is departments to stick to old methods of doing things often experienced by the students as very different is a far cry for needed social intrapreneurship. This from the traditional teaching experience in higher will entail that government officers be innovate to education. find new and better ways of meeting their noble objectives, in this case developing entrepreneurs in Professors should have a background in South Africa. academia, and recent experience in business, such as in consulting for, or initiating, entrepreneurial This stage posits that the new entrepreneurial initiatives. Ideally they should maintain strong “animal” should not be left alone in a hostile personal links with the business sector. The best business environment. There is a need of support professors are teachers who have the required services in access to finance for short, medium and teaching competences as well as real professional long term capital gearing, technology transfer to im- experience in the private sector. For those with no prove quality of products, market linkages and experience in the private sector, specific teaching development to tap bigger and better local and modules should be integrated into the curriculum of export markets and the continued coaching and future professors, such as “How to devise and teach counselling to ensue that the acquired knowledge a case study”. achieves grounded integrity. Many times, learners have reported that after effective SETA supported Supporting students’ business ideas training interventions, they were left alone and could not consult any one when problems arose and A distinction needs to be made between awareness in most situations this made them to revert back to raising and education, and actual business support. the old way of doing things. This Report focuses primarily on building awareness and on offering education programmes, courses and It is recommended that the SETAs closely work with activities. The emphasis is on creating the other government agencies for an effective roll out entrepreneurial mindsets and capacity. Support for of entrepreneurial support services. These govern- university spin-offs is a vast and complex issue, for ment agencies would include the Small Enterprise which a specific Expert Group would need to be Development Agency, Khula and the South Micro created. Moreover, the concept of innovative spin- Finance Fund, the Industrial Development Agency, offs is not particularly relevant for businesses started 12
  • 13. by students, who do not have formal links with the phase of the National Skills Development Plan, university. It seems therefore more appropriate to South Africa would have a cadre of highly skilled speak of innovative, knowledge-based businesses people with few people to drive the enterprises. launched by students and university graduates. Such students would benefit from dedicated advisory and This study concludes that the SETAs need to re- support programmes. examine their role to take up the challenge of developing entrepreneurs and collaborating with Efforts of increasing entrepreneurial activity in other government departments to provide the most African developed countries have not used needed support services. The erection of Silos appropriate methods to realize the contribution of around government departments has done more entrepreneurship to economic development. Most harm than good for entrepreneurs. of these countries still face unemployment problems. A model has been suggested for an integrated approach to be used by government at each of the This study has explored the nature of en- stages. For this model to work a coordinating trepreneurial development by first looking at the committee has to be established to ensure alignment complexity of the unit of analysis entrepreneurship. of programmes to reduce duplication. This complexity on the nature of things to be done in entrepreneurships has suggested the need for well REFERENCES designed entrepreneurial development efforts. Adelman, I. and C. T. Morris (1965). “Factor Analysis of An appropriate scheme of what needs to be done the Interrelationships between Social and Political has been suggested in terms of cultivating an Variables and Per Capita GNP,” Quarterly Journal of entrepreneurial spirit providing training and Economics 79, 555-78. concentrating efforts on supporting the growth of Antonites, A.J. (2003) An action learning approach to the new ventures. Most appropriate institutions and entrepreneurial creativity, innovation and opportunity finding. what needs to be concentrated on have been Unpublished DCom Business Management thesis. identified in the suggested model. In universities, Pretoria: University of Pretoria. courses in entrepreneurship must be implemented at all levels and in all fields. The course Baumol, W. J. (2002). The Free-market Innovation Machine: “entrepreneurship” focusing on the management of Analyzing the Growth Miracle of Capitalism. Princeton: Princeton University Press. creativity and innovation develops the nature of creativity and innovation, and how entre- Campbell, D, T. 1969. Reforms as experiments. American preneurship involves the ability to identify market Psychologist. 24, P. 407—429. opportunity based on new ideas. The course may Davies, T (2004), Developing a nation of entrepreneurs: assist the student to recognise any opportunity The Venture Creation Learnership Model, Research around him. However, the course on Monograph Series, Book 1, NASRA and Services SETA. Entrepreneurship and New Venture Creation are De Vries, K (1997): The Entrepreneurial personality: a intended to build personal appreciation for the chal- person at the crossroads, Journal of Management Studies, lenges and rewards of entrepreneurship; and to Volume/Issue 14; 1 page 36. foster continued development of venture ideas, suitable as career entry options or for investments. European Commission. (2006). Fostering Entrepreneurial (Löwegren, 2006) A social sciences or engineering Mindsets through Education and Learning. Oslo, 26 - 27 October 2006 Final proceedings. student needs the same entrepreneurial skills that the business student; the same with the medical Fayolle, A. 1999. L’ingénieur entrepreneur Français : doctor student. A business plan is needed to open a Contribution à la compréhension des comportements clinic or a law firm. An opportunity recognition is de création et reprise d’entreprise des ingénieurs not there for only business students, but to all those Français, Paris : l’Harmattan. who are willing to embark in any entrepreneurial Filion, L (1991), Visions and relations: elements of an activities. entrepreneurial metamodel, International Small Business Journal, 9 (2), 26-40. This chapter concludes that South Africa has Filion, L and Dolabela, F (2007), the making of a established well intentioned government revolution in Brazil; the introduction of entrepreneurial departments and agencies. However, very little pedagogy in early stages of education,: In Fayolle, A coordination has taken place and worse is the fact (2007) Ed, Handbook of research in entrepreneurship that entrepreneurial development has been over- education, volume 2, Edward Edgar Publishing, UK shadowed by skills developed. If the skills development programmes had succeeded in the first 13
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