African entrepreneurship in south africa seta


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African entrepreneurship in south africa seta

  1. 1. African Entrepreneurship in Global Contexts Copyright © 2010 WASD 1FOSTERING 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 ideasThe interdependence of economic develop- man and a man of action who possesses thement and socio-political change is generally ability to inspire others and who does notrecognized 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 Schumpeterfor economic development through and distinguished the entrepreneur and theemployment, 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 ofdeveloping entrepreneurship to contribute De Vries (1977) describes the entrepre-to economic development has been widely neur as “an individual often inconsistentrecognised. and confused about his motives, desires and wishes, a person under a lot of stressHowever, Orford Herrington and Wood who often upsets us by his or her seemingly(2004) caution that though this is a widely ‘irrational’ impulsive activities”. Thisheld desire, entrepreneurship is poorly un- positioning is behavioural and useful whenderstood. This poor understanding is also we consider efforts aimed at supporting andfrom the fact that the “animal” usually re- developing entrepreneurs. This alsoferred to as the entrepreneur, is more com- suggests the difficult of providing assistanceplex that the way described by the classical or support to entrepreneurs. Indeed, manyeconomists like Schumpeter (1931, 1934) countries have been implementing many 1
  2. 2. programmes and spending a lot of money is pushed into entrepreneurship because theyestablishing institutions around this and no have no other means of making a living andtangible benefits have been realised by are unemployed. For those who are pulledmany. to entrepreneurship, two major drivers of opportunity entrepreneurship can be identi- In simple terms, Antonites (2003) de- fied: those who are pulled primarily becausefines an entrepreneur as an individual with they desire independence, and those whothe potential to create a vision from virtu- are primarily pulled to entrepreneurshipally nothing. Timmons (1994, 7) regards because they want to increase their incomethe 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 othering something of value from practically way of earning a living (necessity-motivatednothing; a human creative act. It involves entrepreneurs) and people who became in-finding personal energy by initiating and volved in entrepreneurial activity primarilybuilding an enterprise or organisation, rath- to maintain their than by just watching, analyzing, or de-scribing one. It requires vision and passion, The Total Entrepreneurial Activity indexcommitment, and motivation to transmit (TEA) for South Africa was 5.4% in 2004this 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 developingwhich government and other agencies face countries. However, the creation of newin developing entrepreneurship in South business should not be overemphasised asAfrica. The policies and strategies used are not all businesses which are created survivediscussed and an approach suggested. The and grow for them to contribute to nationalvalue 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 thein South Africa for the needed contribution low level of creation of new enterprises into 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 bebased on the needed behavioural patterns This section explores the theories whichwhich are influenced by social, economic underpin entrepreneurial education andand psychodynamic forces, any attempts development approaches necessary to dealaimed at supporting entrepreneurs should with the complex personality of the entre-recognize these forces and develop effective preneur which if effective would lead tointerventions to increase the total entrepre- increased creation of new enterprises andneurial 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 thedefine entrepreneurial activity as the rate at attitude and out look of people in societywhich 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 ifture is multiple. Although most individuals done correctly. This is supported by theare pulled into entrepreneurial activity be- Shay and Wood (2005) when they assertcause of opportunity recognition, others are that, “The education system plays an im- 2
  3. 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) supportsthe concept of entrepreneur by Dolabela(1999) who define it as “ a state of being – a The various definitions point out thelifestyle, … a way of thinking, an orientation complexity of an entrepreneur and the facttowards innovation and a capacity to pro- that entrepreneurship can be learned andduce changes in one self, the environment its development in a country like Southand the means of seeking self actualization, Africa can be supported. It is how thisincluding reaction patterns to ambiguities learning is conducted and the nature of theand 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 Educationsearching for and managing resources so asto transform opportunities into successful Entrepreneurship education seeks to pro-business”. This understanding describes the vide students with the knowledge, skills andentrepreneurs as a sophisticated person and motivation to encourage entrepreneurialaptly supported by higher levels of thinking success in a variety of settings. A strategy forwhich only education can provide. entrepreneurship in education is a strategy to strengthen the individual’s ability to seeHowever, 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 includessystem approach and looks at an entrepre- development both of personal qualities andneur as, “...someone who imagines, attitudes and of formal knowledge anddevelops and realizes visions”, a person who skills, together these two main elements willdefines contexts. From this underpinning give pupils/students competence inemerged the school of thought which entrepreneurship. Personal qualities andlooked at entrepreneurial development as a attitudes increase the probability of aprocess of preparing someone to develop person seeing opportunities and doinghigher cognitive skills to be able to design something about them. Work on en-contexts. Hence, it is argued that trepreneurship in education must primarilyentrepreneurial education is important as it place emphasis on development of personalequips one with a feeling of autonomy, qualities and attitudes. In that way a basis isindependence or self confidence which are laid for later utilization of knowledge andall important aspects in starting a business. skills in active value creation. Knowledge and skills concerning what must be done toApparently, the apartheid educational establish a new enterprise, and how to bepolicies 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. (Europeanseems to linger on sixteen years after the Commission, 2006)new political dispensation. The work ofShay and Wood (2005) supports this when Entrepreneurship in education includesthey report that “The proportion of young development both of personal qualities andpeople in South Africa who believe they attitudes and of formal knowledge and 3
  4. 4. skills that will give students competence in toward entrepreneurship, innovationentrepreneurship. Personal qualities and at- and reorientation requires that teacherstitudes increase the probability of a person have knowledge of this. It is thereforeseeing opportunities and doing something important to focus on entrepreneurshipto transform them into reality. Work on en- in teacher training, and also providetrepreneurship in education must primarily courses in competence development toplace emphasis on development of personal working teachers.qualities and attitudes. In that way a basis is 4. The attitudes of school-owners andlaid for later utilisation of knowledge and school managers: School-owners mustskills in active value creation. (Ndedi and follow up the focus on entrepreneurshipIjeoma, 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 developing an idea into a practical, goal-oriented enterprise. It is important that educational institutions are given legitimacy and motivation to workAccording to ODEP (2009), in order to be on entrepreneurship. School managersable to concentrate on the objectives of must be able to follow up, encourage andentrepreneurship in the education system, motivate teachers to be good role modelsthere are four factors that apply to all levels and disseminators of knowledge. Bothof 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. 5. tually starting a company, but it is possible In summary, Entrepreneurship educationto 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 individualslearning experiences through cases studies who become entrepreneurs or en-of successful entrepreneurs. Concerning trepreneurial thinkers by immersing themthis point on students’ capacity building in in real life learning experiences where theyentrepreneurship, a multi-sectoriel policy, can take risks, manage the results, and learngoing from higher education institutions to from the outcomes (ODEP, 2009)centres of training, is needed. For a longperiod of time, many graduates in all fields DATA AND METHODOLOGYof study were not trained in entrepreneur-ship. However, many universities are en- The approach used to collect data for thegaged in various programmes dealing to fill paper was twofold; first desk research wasthis gap on training of potential entrepre- conducted on selected work both local andneurs. The courses included entrepreneur- international in the area of entrepreneurialship and small business management, inno- education. This was done to select a bestvation and creativity, opportunity recogni- practice in education programmes aimed attion 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 thesociated with the emergence of centres and new venture creation programme.higher education institutions specialised in Documents from the department of labourentrepreneurship. were also used as a good resource to identify the work being done by the SectorHenry, Hill and Leitch (2003: 12) point out Education Training Authorities and otherthat entrepreneurship training can com- government agencies. As expected, thisplement the early stage awareness-raising source of information was not very good infunction of entrepreneurship education, as identifying problems faced so far as it wasit provides the more practical skills that not critical.entrepreneurs require when they are readyto set up their business. Ladzani and Van The second source of information wasVuuren (2002: 156) state that organisations information collected from empirical inves-wishing to develop entrepreneurship educa- tigations on the impact made by the varioustion presuppose that the lack of training of SETAs in supporting small, medium andentrepreneurs is the main reason for micro enterprises (SME) levy payers in skillsventure failure. In the same line, Pretorius, development. The SETAs are not identifiedNieman and Van Vuuren (2005: 424) add but whatever is mentioned is common tothat the transfer of the requisite knowledge many of them.and skills is the easiest part of training andis incorporated in most training In addition to the information fromprogrammes on entrepreneurship. SETAs, data is also used from impact assess-However, the behaviour to engage in the ment studies conducted for thestart-up process is what really matters and is Department of Trade and Industry andwhat is lacking in most entrepreneurship Department of Science and Technology.programmes. RESULTS 5
  6. 6. This section first presents the interesting not allow blacks to owning and runningmodels which have been suggested in de- businesses.veloping entrepreneurship and an analysisis made on how useful these could be to As a result of the historical past, Shay andSouth Africa. The current approaches in Wood (2005) propose that the low rate ofentrepreneurial development are then entrepreneurial activity in South Africa ispresented and a suggestion made on a pos- due to most South Africans not having asible 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 successfulBefore the various models are presented, a entrepreneurs receive wide recognition as isuseful scenario to use in reviewing entrepre- the present case of Mr. Richard Maphonya2neurial education programmes is suggested with his opening of the largest shoppingby 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 criticalareas 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 withdeveloping entrepreneurship educational low matric scores and these departmentsprogrammes. However, their effectiveness are seen as departments of last resort. Therein South Africa requires that attention be is a need to effectively positionemphasised to rekindle the needed entrepreneurship programmes in a numberentrepreneurial spirit, killed by apartheid of universities in South Africa. This wouldpolicies especially among blacks, which did suggest offering unique programmes in building entrepreneurs and not placing so 6
  7. 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 approachof 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 beginninglater stages. If selection happens in the early of developing an entrepreneurial spirit instages, it will save resources as efforts will be South Africa.concentrated on people who want to takethe 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 etefforts aimed at changing the attitude of al (2007). Many universities educationsociety toward entrepreneurship and this is providers have used the multi disciplinaryan 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. Onentrepreneurial development modules at all the contrary, the interdisciplinary pedagogyeducational 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 worksdeal 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 ofposits that the most useful way of providing integration, collaboration and synthesisentrepreneurial education is to build indi- which emphasizes teacher, leaner,viduals who are able to “dream and knowledge and processes pedagogyorganize themselves to make their dreams propounded by Houssaye (1993) to assist income true”, (Filion and Dolabela (2007). developing entrepreneurship. This providesThe process involves fundamental a better approach as it considers theapproaches necessary to transform societal methodology used more than the content.norms for entrepreneurial development formembers of society to portray autistic The significance of this approach inbehaviours related to having a collective, South Africa is important as a lot of effortsstructuring and activity dreams (see Filion have been given to the development ofand Dolabela (2007)). entrepreneurial programmes like the new venture creation programme. However, thisIn terms of classroom pedagogy students are has not been very successful as the processesasked two questions: What is your dream in have been weak in the areas of the “doingterms of what you want to become? What is aspect”, the aftercare aspects during theyour project to make this dream come true? business management and improvementThe entrepreneurial pedagogy methodology stages and the processes usually poorly(EPM) is suggested by Filion and Dolabela managed.(2007, 24). 7
  8. 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 alllevels 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 Africanin the country by introducing education system. In particular the pro-entrepreneurship to form part of Economic cesses in managing the system would needManagement Sciences from grades three up serious considerations for education to beto 9 in primary schools. an effective vehicle for the cultivation of an entrepreneurial spirit among the youth inShay and Wood (2005) report three South Africa.problems in teaching entrepreneurshipprogrammes in schools. The first problem Other important players in entrepre-relates to apathy and as a result many neurship education are universities, Southschools do not include entrepreneurship in African Institute for Entrepreneurship andtheir curricula. Secondly, they point out the Foundation for Enterprise and Businessthat 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. 9. The larger challenge of skills training in thinking is the technical skills for workersSouth Africa rests with the SETAs. The ac- and not entrepreneurial skills.cepted role of SETAs is not usually seen assupport developing entrepreneurship but to Table 1 above shows the typical trainingaddress the skills problems inherited from programmes in one of the SETAs. What isthe apartheid regime. It is only through the prominent to note is the wide range ofnew venture creation learnerships that en- programmes offered. This paper argues thattrepreneurial training is seen to be sported entrepreneurial education should beby the SETAs. Further, the SETAs support underpinned in the learnerships and thethe SME levy payers to transfer shills but structured learning programmes offered bylittle, 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 reportsStrategy (NSDS) was drafted by the success in the new venture programmesDepartment of Labour to guide the efforts used at schools developed by SAIE andof government in addressing the human FEBDEV.resource capacity problems inherited fromthe 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 stafftheir focus as being facilitators to make on. It was also pointed that some of theSouth African enterprises be more pro- unit standards are not applicable to theductive and being more competitive in the industry. (11%)global village. This would not happen if theentrepreneurs do not receive the appropri- • The third problem was mentioned byate receive inappropriate to start, maintain 9% of the firms who felt that the badand grow their enterprises. Entrepreneurial communication with the SETA made iteducation should be encouraged and open- difficult to know areas to target for skillsly supported by SETAs. development. • Seven percent reported that trainees inFurther, many SETAs have identified the cases are not interested to be trainedsupport of small and medium enterpriselevy payers as an important target group toassist in skills transfers. Again the common 9
  10. 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 challengesinclude 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. 11. Work Skills Programme Learnerships Structured LearningGeneral skills General skills General skillsSales training TTI programme Management & strategic management coursesSupply chain management Sales training Book keeping and financial managementCustomer service General travel and business HR, LLB, B. Com travelInduction training Performance management Induction coursesTelephone techniques Process skills In all functional areas, IT, Excel etcSecurity Computer training Presentation skillsPolicies and procedures Health and occupation and Customer care, businesstraining safety awarenessIndustrial relations and HIV/AIDS awareness ABETsupervisory skillsHealth and safety and HIV/AIDS Management development courses, industrial relationsMotivational training Supervisory trainingSpecific skills Specific skills Specific skillsAccommodation services Chef and customer care Waiter programmesprovision and house keepingFood preparation and front Waiter training Semi skilled kitchen courseofficeWaiter training Technical training in cookery, Hotel management, cooking Hospitality, Food, drink and Beverage servicesComputerised reservation Accommodation services Tourism coursessystems like Galileo, AmadeusSpecific product training Occupational Health and SafetyGreen keeping, technical Child mindingDriving 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 entrepreneurialThe first stage involves the creation of the right skills transfer as opposed to technical skills trainingmind set for the development of entrepreneurship offered to workers South Africa. We call this the ontology stage inthat it aims at defining the desired state of being by To support the SETAs, the education system at allmembers of society. This will involve developing the levels needs to be supported so that entrepreneurialentrepreneurial dreams and defining how these will education receives the desired status for materials tobe achieved through well articulated entrepreneurial be supplied and teachers trained as content andactivities. 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 andfertile ground for the development of entrepreneurs private; a strategy which is long overdue. This willthrough conceited Adult Basic Education and require that the SETAs operate in an effectiveTraining (ABET) programmes. Without this, phase business manner in this partnership. The currenttwo becomes a problem to implement. All skills problems identified in terms of capacity anddevelopment efforts by levy payers, including operational problems need to be ironed outgovernment departments, need to implement ABET (Department of Labour (2006)).as the first priority. SETAs have a role to play in thisregard and their efforts should be continued and From being dreamers to visioning the dreamsenhanced. The second phase is more concerned withFurther, the role of mobilization will have to be epistemology, that is, the content of impartingperformed by the SETAs to ensure that the right entrepreneurial skills through the use of appropriate 11
  12. 12. methodologies. Two revolutionary methodologies National Empowerment Fund, Umusobomvu Youthare suggested, first the integration paradigm and the Fund, the local government economic developmentEPM. If these methodologies are recommended the agencies like Gauteng Enterprise Propeller,educational institutions and SETAs through Ethekwini Local Business Development Servicelearnerships, skills to support behaviour for dream Agency etc.realization, support knowledge pillars erected fromvarious disciplines to mould the entrepreneurial SUMMARY SUMMARY AND CONCLUSIONSstudents to be able to know what to do and learnthrough doing thereby being able to hoard Recommendationsexperience. Therefore, the real challenge is to build inter- The SETA learnerships are best suited for this disciplinary approaches, making entrepreneurshipstage and the suggested role is for them to move education accessible to all students, and wherecloser and partner with levy payers for market driven appropriate creating teams for the development andlearnerships to be implemented. Most importantly, exploitation of business ideas, mixing students fromepistemology would suggest that attention be paid to economic and business studies with students fromthe 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 fromstrategies are needed through joint design processes action-oriented and student-inclusive teachingwhere a few selected partners are used for consulta- forms, teaching students “how to” so that they cantions 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. Crossingcan be learned and useful methods are needed and the boundary of the university and the worldthese are suggested. The tendency of government outside is one of the reasons why such teaching isdepartments to stick to old methods of doing things often experienced by the students as very differentis a far cry for needed social intrapreneurship. This from the traditional teaching experience in higherwill entail that government officers be innovate to education.find new and better ways of meeting their nobleobjectives, in this case developing entrepreneurs in Professors should have a background inSouth 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 bestbusiness environment. There is a need of support professors are teachers who have the requiredservices in access to finance for short, medium and teaching competences as well as real professionallong term capital gearing, technology transfer to im- experience in the private sector. For those with noprove quality of products, market linkages and experience in the private sector, specific teachingdevelopment to tap bigger and better local and modules should be integrated into the curriculum ofexport markets and the continued coaching and future professors, such as “How to devise and teachcounselling to ensue that the acquired knowledge a case study”.achieves grounded integrity. Many times, learnershave reported that after effective SETA supported Supporting students’ business ideastraining interventions, they were left alone andcould not consult any one when problems arose and A distinction needs to be made between awarenessin 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 andIt is recommended that the SETAs closely work with activities. The emphasis is on creating theother government agencies for an effective roll out entrepreneurial mindsets and capacity. Support forof entrepreneurial support services. These govern- university spin-offs is a vast and complex issue, forment agencies would include the Small Enterprise which a specific Expert Group would need to beDevelopment 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. 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 skilledspeak of innovative, knowledge-based businesses people with few people to drive the enterprises.launched by students and university graduates. Suchstudents 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 themost African developed countries have not used needed support services. The erection of Silosappropriate methods to realize the contribution of around government departments has done moreentrepreneurship to economic development. Most harm than good for entrepreneurs.of these countries still face unemploymentproblems. A model has been suggested for an integrated approach to be used by government at each of theThis study has explored the nature of en- stages. For this model to work a coordinatingtrepreneurial development by first looking at the committee has to be established to ensure alignmentcomplexity of the unit of analysis entrepreneurship. of programmes to reduce duplication.This complexity on the nature of things to be donein entrepreneurships has suggested the need for well REFERENCESdesigned entrepreneurial development efforts. Adelman, I. and C. T. Morris (1965). “Factor Analysis ofAn appropriate scheme of what needs to be done the Interrelationships between Social and Politicalhas been suggested in terms of cultivating an Variables and Per Capita GNP,” Quarterly Journal ofentrepreneurial spirit providing training and Economics 79, 555-78.concentrating efforts on supporting the growth of Antonites, A.J. (2003) An action learning approach tothe 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 in entrepreneurship must be implementedat 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 ofcreativity and innovation, and how entre- Campbell, D, T. 1969. Reforms as experiments. Americanpreneurship 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, Researcharound 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: aintended 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 thatthe 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 comportementsclinic or a law firm. An opportunity recognition is de création et reprise d’entreprise des ingénieursnot 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 anactivities. 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 aestablished well intentioned government revolution in Brazil; the introduction of entrepreneurialdepartments and agencies. However, very little pedagogy in early stages of education,: In Fayolle, Acoordination has taken place and worse is the fact (2007) Ed, Handbook of research in entrepreneurshipthat entrepreneurial development has been over- education, volume 2, Edward Edgar Publishing, UKshadowed by skills developed. If the skillsdevelopment programmes had succeeded in the first 13
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