Entrepreneurship Education in SETA


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Entrepreneurship Education in SETA

  1. 1. African Entrepreneurship in Global Contexts FOSTERING ENTREPRENEURSHIP EDUCATION IN SOUTH AFRICA: THE ROLE OF SECTOR EDUCATION TRAINING AUTHORITIES (SETA) Kachesa E Bbenkele1 and Alain A. Ndedi2 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. INTRODUCTION contribute to economic development has been widely recognised. The interdependence of economic develop- ment and socio-political change is generally However, Orford Herrington and Wood recognized by social scientists (Adelman and (2004) caution that though this is a widely Morris, 1965). Entrepreneurship is consid- held desire, entrepreneurship is poorly un- ered to be an important mechanism for eco- derstood. This poor understanding is also nomic development through employment, from the fact that the “animal” usually re- innovation, and welfare effects (Wennekers ferred to as the entrepreneur, is more com- and Thurik, 1999; Baumol, 2002). The im- plex that the way described by the classical portance of developing entrepreneurship to economists like Schumpeter (1931, 1934) 1 K. E. Bbenkele is HOD of Entrepreneurship at the University of Johannesburg, ZA, Email: ebbenkele@uj.ac.za 2 A. A. Ndedi is a lecturer at the Department of Entrepreneurship, University of Johannesburg, ZA, Email: Ndedi.alain@gmail.com Copyright © 2010 WASD 1
  2. 2. 2 Kachesa E Bbenkele and Alain A. Ndedi who saw him as a person who does things in developing entrepreneurship in South “that are not generally done in the ordinary Africa. The policies and strategies used are course of business routine. He is an ideas discussed and an approach suggested. The man and a man of action who possesses the value of the paper is in guiding policy mak- ability to inspire others and who does not ers on how best to build entrepreneurship accept the boundaries of structured situa- in South Africa for the needed contribution tions, the creative destructor”. Say (1803; to economic growth. 1996) furthered the work of Schumpeter and distinguished the entrepreneur and the capitalist and further linked the entrepre- neurs and saw them as agents of change. THE THOERETICAL FRAMEWORK De Vries (1977) describes the entrepre- If entrepreneurship is understood to be neur as “an individual often inconsistent based on the needed behavioural patterns and confused about his motives, desires and which are influenced by social, economic wishes, a person under a lot of stress who of- and psychodynamic forces, any attempts ten upsets us by his or her seemingly ‘irratio- aimed at supporting entrepreneurs should nal’ impulsive activities”. This positioning recognize these forces and develop effective is behavioural and useful when we consider interventions to increase the total entrepre- efforts aimed at supporting and developing neurial activity in South Africa. Orford et entrepreneurs. This also suggests the diffi- al (2004) in their Global Monitor Report cult of providing assistance or support to define entrepreneurial activity as the rate entrepreneurs. Indeed, many countries have at which a nation creates new businesses. been implementing many programmes and There are many reasons motivating this pos- spending a lot of money is establishing insti- ture is multiple. Although most individuals tutions around this and no tangible benefits are pulled into entrepreneurial activity be- have been realised by many. cause of opportunity recognition, others are pushed into entrepreneurship because they In simple terms, Antonites (2003) de- have no other means of making a living and fines an entrepreneur as an individual with are unemployed. For those who are pulled the potential to create a vision from virtu- to entrepreneurship, two major drivers of ally nothing. Timmons (1994, 7) regards the opportunity entrepreneurship can be identi- process of entrepreneurship as follows: fied: those who are pulled primarily because they desire independence, and those who Entrepreneurship is creating and build- are primarily pulled to entrepreneurship ing something of value from practically because they want to increase their income nothing; a human creative act. It involves as compared to, for instance, being an em- finding personal energy by initiating and ployee. The remaining share includes peo- building an enterprise or organisation, rath- ple who maintain that they have no other er than by just watching, analyzing, or de- way of earning a living (necessity-motivated scribing one. It requires vision and passion, entrepreneurs) and people who became in- commitment, and motivation to transmit volved in entrepreneurial activity primarily this vision to other stakeholders. to maintain their income. This chapter investigates the challenges The Total Entrepreneurial Activity index which government and other agencies face (TEA) for South Africa was 5.4% in 2004
  3. 3. Fostering entrepreneurship education in south africa 3 and this placed it in the 24th position out of seize and take advantage of opportunities, the 34 countries in the GEM studies. This searching for and managing resources so as is lower than the ETA of other developing to transform opportunities into successful countries. However, the creation of new business”. This understanding describes business should not be overemphasised as the entrepreneurs as a sophisticated per- not all businesses which are created survive son and aptly supported by higher levels and grow for them to contribute to national of thinking which only education can economic development through wealth cre- provide. ation. What the TEA index reveals is the low level of creation of new enterprises in However, the later works of Filion (1991) South Africa. For more entrepreneurs to be did not help much as describing the entre- developed there is a need to deal with the preneur as a complexity animal. He takes a three forces mentioned above which influ- system approach and looks at an entrepre- ence entrepreneurial behaviour through ef- neur as, “...someone who imagines, develops fective training interventions. and realizes visions”, a person who defines contexts. From this underpinning emerged This section explores the theories which the school of thought which looked at entre- underpin entrepreneurial education and preneurial development as a process of pre- development approaches necessary to deal paring someone to develop higher cognitive with the complex personality of the entre- skills to be able to design contexts. Hence, it preneur which if effective would lead to is argued that entrepreneurial education is increased creation of new enterprises and important as it equips one with a feeling of their growth. Education theories are used autonomy, independence or self confidence here because there is a need to change the which are all important aspects in starting attitude and out look of people in society a business. for entrepreneurial activities to take place, and has the potential to do this education Apparently, the apartheid educational if done correctly. This is supported by the policies did not allow this to take place es- Shay and Wood (2005) when they assert pecially amongst Africans. The legacy still that, “The education system plays an im- seems to linger on thirteen years after the portant role in developing entrepreneurial new political dispensation. The work of skills and sharing attitudes in several ways”. Shay and Wood (2004) supports this when they report that “The proportion of young This is also supported in the work on the people in South Africa who believe they concept of entrepreneur by Dolabela (2000) have the skills to start a new business is sig- who define it as “ a state of being – a life- nificantly lower than that in other develop- style, … a way of thinking, an orientation ing countries like Argentina etc.” towards innovation and a capacity to pro- duce changes in one self, the environment The various definitions point out the and the means of seeking self actualization, complexity of an entrepreneur and the including reaction patterns to ambiguities fact that entrepreneurship can be learned and uncertainties”. and its development in a country like South Africa can be supported. It is how Other authors like Timmons (2004) and this learning is conducted and the nature Shane (2005) have described an entrepre- of the support structures which will de- neur as some one who is able to identify, termine impact made in the creation of
  4. 4. 4 Kachesa E Bbenkele and Alain A. Ndedi entrepreneurship. The following section de- concerning what must be done to establish velops entrepreneurship education. a new enterprise, and how to be successful in developing an idea into a practical, goal- Entrepreneurial Education oriented enterprise. Entrepreneurship education seeks to pro- According to ODEP (2009), in order to vide students with the knowledge, skills and be able to concentrate on the objectives of motivation to encourage entrepreneurial entrepreneurship in the education system, success in a variety of settings. A strategy for there are four factors that apply to all levels entrepreneurship in education is a strategy to of the education system: strengthen the individual’s ability to see and exploit opportunities in an economic, so- 1. Entrepreneurship as an integrated part cial and cultural context. Entrepreneurship of instruction: Entrepreneurship must be in education includes development both defined as an objective in education, and of personal qualities and attitudes and of be included in the instruction strategy. formal knowledge and skills, together these 2. Collaboration with the local community: two main elements will give pupils/students Instruction in entrepreneurship requires competence in entrepreneurship. Personal close collaboration between schools qualities and attitudes increase the prob- and the local business and social sector. ability of a person seeing opportunities and There is therefore a need for more arenas doing something about them. Work on en- for contact between educational institu- trepreneurship in education must primarily tions and various players in society. In place emphasis on development of personal such arenas educational institutions and qualities and attitudes. In that way a basis is the local social and business sectors will laid for later utilization of knowledge and get to know one another better, and cul- skills in active value creation. Knowledge tural barriers may be dismantled. and skills concerning what must be done to establish a new enterprise, and how to be This will result in mutual benefit inas- successful in developing an idea into a prac- much as it will increase the quality and tical, goal-oriented enterprise. (European relevance of education and strengthen Commission, 2006) recruitment to the local business sector and development of competence. Entrepreneurship in education includes 3. Teachers’ competence: Teachers are im- development both of personal qualities portant role models. A positive attitude and attitudes and of formal knowledge and among young people in schools toward skills that will give students competence in entrepreneurship, innovation and re- entrepreneurship. Personal qualities and at- orientation requires that teachers have titudes increase the probability of a person knowledge of this. It is therefore impor- seeing opportunities and doing something tant to focus on entrepreneurship in to transform them into reality. Work on en- teacher training, and also provide courses trepreneurship in education must primarily in competence development to working place emphasis on development of personal teachers. qualities and attitudes. In that way a basis is laid for later utilisation of knowledge 4. The attitudes of school-owners and and skills in active value creation. (Ndedi school managers: School-owners must and Ijeoma, 2008) Knowledge and skills follow up the focus on entrepreneurship
  5. 5. Fostering entrepreneurship education in south africa 5 in curricula and management docu- period of time, many graduates in all fields ments, and build competence and in- of study were not trained in entrepreneur- sight among school managers. ship. However, many universities are en- gaged in various programmes dealing to fill It is important that educational institu- this gap on training of potential entrepre- tions are given legitimacy and motivation neurs. The courses included entrepreneur- to work on entrepreneurship. School man- ship and small business management, inno- agers must be able to follow up, encourage vation and creativity, opportunity recogni- and motivate teachers to be good role mod- tion and business plans. These courses are els and disseminators of knowledge. Both aimed in developing and unleashing gradu- school-owners and school managers must ates’ expertise about entrepreneurship. As take the initiative in collaborating with the it has always emphasized in the case of US, business sector and other agencies in the the proliferation of entrepreneurs was as- municipality. To successfully address un- sociated with the emergence of centres and employment across youth people, certain higher education institutions specialised in things need to be developed regarding the entrepreneurship. training of potential entrepreneurs through tertiary institutions. Entrepreneurship Henry, Hill and Leitch (2003: 12) point education is a common course of study in out that entrepreneurship training can com- higher education settings. A wide variety of plement the early stage awareness-raising curricular approaches exist, though many function of entrepreneurship education, common elements are found across institu- as it provides the more practical skills that tions and settings. These texts and programs entrepreneurs require when they are ready must be structured to introduce the concept to set up their business. Ladzani and Van of entrepreneurship and provide hands-on Vuuren (2002: 156) state that organisations experience and working models for students wishing to develop entrepreneurship educa- to develop skills as entrepreneurs. The prin- tion presuppose that the lack of training of ciples of entrepreneurship must be consid- entrepreneurs is the main reason for venture ered valuable for students at all levels. failure. In the same line, Pretorius, Nieman and Van Vuuren (2005: 424) add that the In response to the rapidly changing na- transfer of the requisite knowledge and tional landscape, not only of high unem- skills is the easiest part of training and is ployment but more generally of economic incorporated in most training programmes growth and job creation, entrepreneurship on entrepreneurship. However, the behav- is being increasingly emphasized as a criti- iour to engage in the start-up process is what cal resource. Timmons and Spinelli (2007) really matters and is what is lacking in most recognise that there is no substitute for ac- entrepreneurship programmes. tually starting a company, but it is possible to expose students in all fields to many of In summary, Entrepreneurship educa- the vital issues and immerse them in key tion seeks to prepare people, particularly learning experiences through cases studies youth, to be responsible, enterprising indi- of successful entrepreneurs. Concerning viduals who become entrepreneurs or en- this point on students’ capacity building in trepreneurial thinkers by immersing them entrepreneurship, a multi-sectoriel policy, in real life learning experiences where they going from higher education institutions can take risks, manage the results, and learn to centres of training, is needed. For a long from the outcomes (ODEP, 2009)
  6. 6. 6 Kachesa E Bbenkele and Alain A. Ndedi DATA AND METHODOLOGY presented and a suggestion made on a pos- sible new approach. The approach used to collect data for the paper was two fold; first desk research was Crucial activities for entrepreneurial conducted on selected work both local and development international in the area of entrepreneurial education. This was done to select a best Before the various models are presented, a practice in education programmes aimed at useful scenario to use in reviewing entrepre- developing entrepreneurs. neurial education programmes is suggested by Janssen, Eeckhout and Gailly (2007). Review of critiques on the current train- They use the model developed by Fayolle ing programmes in entrepreneurial educa- (1999) model which identifies three critical tion was also conducted especially in the new areas or stages crucial for entrepreneurial venture creation programme. Documents development. These are identified as; from the department of labour were also a. Mobilization programmes aimed at devel- used as a good resource to identify the work oping the entrepreneurial spirit among being done by the Sector Education Training budding entrepreneurs in society. Authorities and other government agencies. As expected, this source of information was b. Entrepreneurial training programmes not very good in identifying problems faced which aim at moulding intending en- so far as it was not critical. trepreneurs for the needed change in entrepreneurial attitude and aptitude to The second source of information was establish new ventures or develop new information collected from empirical inves- ways of creating additional wealth in tigations on the impact made by the various existing businesses. This is done mainly SETAs in supporting small, medium and through educational programmes aimed micro enterprises (SME) levy payers in skills at giving students skills and entrepre- development. The SETAs are not identified neurial abilities. but whatever is mentioned is common to c. Entrepreneurial support programmes many of them. (ESPs) tend to select students who already have a business opportunity to exploit In addition to the information from and aim at giving personal assistance and SETAs, data is also used from impact assess- advice to exploit the opportunity. ment studies conducted for the Department of Trade and Industry and Department of This scenario is a useful typology for Science and Technology. developing entrepreneurship educational programmes. However, their effectiveness in South Africa requires that attention be RESULTS emphasised to rekindle the needed entrepre- neurial spirit, killed by apartheid policies es- This section first presents the interesting pecially among blacks, which did not allow models which have been suggested in de- blacks to owning and running businesses. veloping entrepreneurship and an analy- sis is made on how useful these could be As a result of the historical past, Shay to South Africa. The current approaches and Wood (2005) propose that the low rate in entrepreneurial development are then of entrepreneurial activity in South Africa
  7. 7. Fostering entrepreneurship education in south africa 7 is due to most South Africans not having a and implemented in the early stages of the “…belief in their own ability to start a busi- entrepreneurial development process. If ness…”. At this stage, it is suggested that ed- this is not done a lot of students will be tak- ucational programmes would need to open en on board and will be eliminated in the and change mindsets for students by provid- later stages. If selection happens in the early ing an environment where successful entre- stages, it will save resources as efforts will be preneurs receive wide recognition as is the concentrated on people who want to take present case of Mr. Richard Maphonya2 with the entrepreneurial route. Further, support his opening of the largest shopping centre in would be concentrated on these. the southern hemisphere based in Soweto. The above suggests the need of consider- Davies (2004) concludes that “profes- able efforts aimed at changing the attitude sional or corporate careers are generally of society toward entrepreneurship and held in greater esteem than business own- this is an aspect that can only be effectively ership”. This emphasizes the importance of changed through the proper positioning of the first stage of mobilizing entrepreneur- entrepreneurial development modules at ship in South Africa. all educational levels in South Africa. The model we propose in sections below will The second stage requirement is partly deal with these aspects explained from the conclusion made by Davies (2004) above. This suggests that Interesting international entrepreneurial training programmes es- entrepreneurial education models pecially in educational institutions should be strong enough to make students have The first model presented in this paper dreams of owning businesses as opposed to posits that the most useful way of providing being employed. Currently there is a ten- entrepreneurial education is to build indi- dency for many faculties especially in the viduals who are able to “dream and organize sciences at universities to embrace this view themselves to make their dreams come true”, and hence not support the introduction (Filion and Dolabela (2007). The process in- of entrepreneurship skills training in their volves fundamental approaches necessary to programmes. transform societal norms for entrepreneur- ial development for members of society to Further, where some education institu- portray autistic behaviours related to having tions have entrepreneurships departments, a collective, structuring and activity dreams these have tended to attract students with (see Filion and Dolabela (2007)). low matric scores and these departments are seen as departments of last resort. There is In terms of classroom pedagogy students a need to effectively position entrepreneur- are asked two questions: What is your dream ship programmes in a number of universities in terms of what you want to become? What in South Africa. This would suggest offering is your project to make this dream come unique programmes in building entrepre- true? The entrepreneurial pedagogy meth- neurs and not placing so much emphasis on odology (EPM) is suggested by Filion and numbers for the programmes to be offered. Dolabela (2007, 24). The third point is that the identification This model would be useful in the de- of students should be a deliberate process velopment of an entrepreneurial mindset
  8. 8. 8 Kachesa E Bbenkele and Alain A. Ndedi starting from primary schools to higher Role of Sector Education Training institutions of learning. This approach Authorities would revolutionalize the way entrepre- neurship is taught and would make stu- Entrepreneurship education in South Africa dents choose entrepreneurial careers as at- has a number of players including all levels tractive as opposed to the low risk profes- of education institutions. In particular the sional paths. This would be the beginning government has attempted to readdress of developing an entrepreneurial spirit in the low levels of entrepreneurship in the South Africa. country by introducing entrepreneurship to form part of Economic Management Another useful way of thinking of edu- Sciences from grades three up to 9 in pri- cational programmes is the need for an mary schools. interdisciplinary approach in the entrepre- neurial programmes suggested by Janssen Shay and Wood (2005) report three et al (2007). Many universities education problems in teaching entrepreneurship providers have used the multi disciplinary programmes in schools. The first prob- approach where several disciplines are com- lem relates to apathy and as a result many bined to broaden the scope of learners. On schools do not include entrepreneurship the contrary, the interdisciplinary pedagogy in their curricula. Secondly, they point out involves the opposite; it integrates disci- that there is a paucity of suitable teachers plines. This is supported in the early works who can teach entrepreneurship. It seems of Petrie (1992) and Campbell (1969) when that entrepreneurship is regarded as an un- they argued that “…any interdisciplinary ap- important teaching subject and not sought proach has to rely upon the disciplines in after by students doing teacher training. order to ground its credibility”. The last problem is that materials are not available in many of the primary schools es- This model uses the principles of integra- pecially those in the rural areas. tion, collaboration and synthesis which em- phasizes teacher, leaner, knowledge and pro- The importance of the principles of inte- cesses pedagogy propounded by Houssaye gration: teacher, leaner, knowledge and pro- (1993) to assist in developing entrepreneur- cesses are put to test in the South African ship. This provides a better approach as it education system. In particular the pro- considers the methodology used more than cesses in managing the system would need the content. serious considerations for education to be an effective vehicle for the cultivation of an The significance of this approach in entrepreneurial spirit among the youth in South Africa is important as a lot of ef- South Africa. forts have been given to the development of entrepreneurial programmes like the new Other important players in entrepre- venture creation programme. However, this neurship education are universities, South has not been very successful as the processes African Institute for Entrepreneurship and have been weak in the areas of the “doing as- the Foundation for Enterprise and Business pect”, the after care aspects during the busi- Development. In the GEM report of 2005, ness management and improvement stages these business venture programmes are fa- and the processes usually poorly managed. vourably reviewed.
  9. 9. Fostering entrepreneurship education in south africa 9 The larger challenge of skills training in Further, many SETAs have identified the South Africa rests with the SETAs. The ac- support of small and medium enterprise cepted role of SETAs is not usually seen as levy payers as an important target group to support developing entrepreneurship but to assist in skills transfers. Again the common address the skills problems inherited from thinking is the technical skills for workers the apartheid regime. It is only through the and not entrepreneurial skills. new venture creation learnerships that en- trepreneurial training is seen to be sported Table 1 above shows the typical training by the SETAs. Further, the SETAs support programmes in one of the SETAs. What the SME levy payers to transfer shills but is prominent to note is the wide range of little, if any, entrepreneurial development is programmes offered. This paper argues seems to be done. that entrepreneurial education should be underpinned in the learnerships and the The National Skills Development structured learning programmes offered by Strategy (NSDS) was drafted by the SETAs. To some extent new venture cre- Department of Labour to guide the efforts ation has been used by the SETAs on a pilot of government in addressing the human basis with no encouraging results and yet resource capacity problems inherited from the Global Enterprise Monitor reports suc- the apartheid regime. The mission of the cess in the new venture programmes used at NSDS is, schools developed by SAIE and FEBDEV. “To equip South Africa (ns) with the skills In terms of challenges faced in implement- to succeed in the global market and to of- ing the skills development programmes, the fer opportunities to individuals and com- results show a number of issues raised as fol- munities for self-advancement to enable lows below. them to play a productive role in society”. This entails that people in places of work • Forty two percent saw no challenges in contribute to and make their own deci- implementing skills development pro- sions about their place of work. This in grammes essence should be regarded as building in- • Fifteen percent mention cost factors as trapreneurship and entrepreneurs within an impediment. These costs related to South African companies. training staff who would then leave the firm or become too expensive to retain; This paper posits that the SETAs have too small to do training (time) and to tended to regard skills training to mean bear the administrative burdens. technical training for workers. This blurs their focus as being facilitators to make • With industry manuals not available, South African enterprises be more pro- firms are not sure of courses to put staff ductive and being more competitive in the on. It was also pointed that some of the global village. This would not happen if the unit standards are not applicable to the entrepreneurs do not receive the appropri- industry. (11%) ate receive inappropriate to start, maintain and grow their enterprises. Entrepreneurial • The third problem was mentioned by education should be encouraged and open- 9% of the firms who felt that the bad ly supported by SETAs. communication with the SETA made it
  10. 10. 10 Kachesa E Bbenkele and Alain A. Ndedi Table 1 Common Skills Programmes offered 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 training Health and occupation and Customer care, business 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 office Waiter training Semi skilled kitchen course Waiter training Technical training in Hotel management, cooking cookery, Hospitality, Food, drink and Beverage services Computerised reservation systems Accommodation services Tourism courses like Galileo, Amadeus Specific product training Occupational Health and Safety Green keeping, technical Child minding Driving difficult to know areas to target for skills Other issues which emerge as challenges in- development. clude the following: • Seven percent reported that trainees in • The level of structured industry training cases are not interested to be trained is low in South Africa as compared to the other trading partners • Six percent mentioned problems of company culture, impact of HIV/AIDS, • Expenditure on skills development in lack of management support, organiza- the critical sectors, which promise future tional demands and cultural issues as growth and employment, is low, especial- problems. ly among the SMEs.
  11. 11. Fostering entrepreneurship education in south africa 11 • In most industries training has remained programmes. Without this, phase two be- very informal and at a very superficial comes a problem to implement. All skills level, with most lower level workers not development efforts by levy payers, includ- empowered. This trend will need to be ing government departments, need to im- addressed as it perpetuates the apartheid plement ABET as the first priority. SETAs legacy. have a role to play in this regard and their efforts should be continued and enhanced. • There is a failure by many companies especially SMEs to recognize the impor- Further, the role of mobilization will tance of training within the immediate have to be performed by the SETAs to en- and external environment for training sure that the right entrepreneurial mindset to be integrated in company strategic is created among levy payers. Most impor- objectives. tant is to re position the support to levy pay- • There is a shortage of high quality man- ers to give prominence to entrepreneurial agement skills transfer as opposed to technical skills training offered to workers only. • Skills development programmes do not seem to be demand driven, i.e. taking To support the SETAs, the education place within a job related framework system at all levels needs to be supported so • Some of the training programmes are ill that entrepreneurial education receives the conceived and too short for the desired desired status for materials to be supplied impact and teachers trained as content and process managers. Later, we shall argue for partner- • Entrepreneurial training has always been ships to be established between SETAs and sacrificed for technical training educational institutions including public • Women and the physically challenged and private; a strategy which is long over due. continue to be marginalized. This will require that the SETAs operate in an effective business manner in this part- Mobilization: Developing culture of nership. The current problems identified dreamers and using entrepreneurship in terms of capacity and operational prob- to meet dreams. lems need to be ironed out (Department of Labour (2006)). The first stage involves the creation of the right mind set for the development of en- From being dreamers to visioning trepreneurship in South Africa. We call this the dreams the ontology stage in that it aims at defin- ing the desired state of being by members The second phase is more concerned with of society. This will involve developing the epistemology, that is, the content of impart- entrepreneurial dreams and defining how ing entrepreneurial skills through the use these will be achieved through well articu- of appropriate methodologies. Two revolu- lated entrepreneurial activities. tionary methodologies are suggested, first the integration paradigm and the EPM. If This stage will also require the cultiva- these methodologies are recommended the tion of fertile ground for the development educational institutions and SETAs through of entrepreneurs through conceited Adult learnerships, skills to support behaviour for Basic Education and Training (ABET) dream realization, support knowledge pillars
  12. 12. 12 Kachesa E Bbenkele and Alain A. Ndedi erected from various disciplines to mould interventions, they were left alone and could the entrepreneurial students to be able to not consult any one when problems arose know what to do and learn through doing and in most situations this made them to thereby being able to hoard experience. revert back to the old way of doing things. The SETA learnerships are best suited It is recommended that the SETAs for this stage and the suggested role is for closely work with other government agen- them to move closer and partner with levy cies for an effective roll out of entrepre- payers for market driven learnerships to be neurial support services. These govern- implemented. Most importantly, epistemol- ment agencies would include the Small ogy would suggest that attention be paid to Enterprise Development Agency, Khula the trainers, selection of learners, providing and the South Micro Finance Fund, the the right knowledge and being able to man- Industrial Development Agency, National age the process. This is a big challenge for Empowerment Fund, Umusobomvu Youth the SETAs and effective strategies are need- Fund, the local government economic de- ed through joint design processes where a velopment agencies like Gauteng Enter- few selected partners are used for consulta- prise Propeller, Ethekwini Local Business tions to develop process that will work. Development Service Agency etc. Continued effective support services for entrepreneurs SUMMARY AND CONCLUSIONS The above stages point out that entrepre- Recommendations neurship can be learned and useful meth- ods are needed and these are suggested. The Therefore, the real challenge is to build tendency of government departments to inter-disciplinary approaches, making en- stick to old methods of doing things is a far trepreneurship education accessible to all cry for needed social intrapreneurship. This students, and where appropriate creating will entail that government officers be inno- teams for the development and exploitation vate to find new and better ways of meeting of business ideas, mixing students from eco- their noble objectives, in this case develop- nomic and business studies with students ing entrepreneurs in South Africa. from other faculties and with different backgrounds. This stage posits that the new entrepre- neurial “animal” should not be left alone Innovation and effectiveness stem pri- in a hostile business environment. There marily from action-oriented and student- is a need of support services in access to inclusive teaching forms, teaching students finance for short, medium and long term “how to” so that they can understand the capital gearing, technology transfer to im- more theoretical aspects more easily, in- prove quality of products, market linkages volving students heavily and actively in the and development to tap bigger and better learning process, and involving “outsiders” local and export markets and the continued in the learning process. The people doing coaching and counselling to ensue that the the teaching should be to some extent en- acquired knowledge achieves grounded in- trepreneurs themselves, building their input tegrity. Many times, learners have reported on real-life experience. Crossing the bound- that after effective SETA supported training ary of the university and the world outside
  13. 13. Fostering entrepreneurship education in south africa 13 is one of the reasons why such teaching is to economic development. Most of often experienced by the students as very these countries still face unemployment different from the traditional teaching expe- problems. rience in higher education. This study has explored the nature of en- Professors should have a background in trepreneurial development by first looking at academia, and recent experience in busi- the complexity of the unit of analysis entre- ness, such as in consulting for, or initiat- preneurship. This complexity on the nature ing, entrepreneurial initiatives. Ideally they of things to be done in entrepreneurships should maintain strong personal links with has suggested the need for well designed en- the business sector. The best professors are trepreneurial development efforts. teachers who have the required teaching competences as well as real professional An appropriate scheme of what needs experience in the private sector. For those to be done has been suggested in terms of with no experience in the private sector, cultivating an entrepreneurial spirit pro- specific teaching modules should be inte- viding training and concentrating efforts grated into the curriculum of future profes- on supporting the growth of the new ven- sors, such as “How to devise and teach a tures. Most appropriate institutions and case study”. what needs to be concentrated on have been identified in the suggested model. In Supporting students’ business ideas universities, courses in entrepreneurship must be implemented at all levels and in A distinction needs to be made between all fields. The course “entrepreneurship” awareness raising and education, and ac- focusing on the management of creativ- tual business support. This Report focuses ity and innovation develops the nature of primarily on building awareness and on creativity and innovation, and how entre- offering education programmes, courses preneurship involves the ability to iden- and activities. The emphasis is on creating tify market opportunity based on new the entrepreneurial mindsets and capacity. ideas. The course may assist the student Support for university spin-offs is a vast and to recognise any opportunity around him. complex issue, for which a specific Expert However, the course on Entrepreneurship Group would need to be created. Moreover, and New Venture Creation are intended the concept of innovative spin-offs is not to build personal appreciation for the chal- particularly relevant for businesses started lenges and rewards of entrepreneurship; by students, who do not have formal links and to foster continued development of with the university. It seems therefore more venture ideas, suitable as career entry op- appropriate to speak of innovative, knowl- tions or for investments. (Löwegren, 2006) edge-based businesses launched by students A social sciences or engineering student and university graduates. Such students needs the same entrepreneurial skills that would benefit from dedicated advisory and the business student; the same with the support programmes. medical doctor student. A business plan is needed to open a clinic or a law firm. Efforts of increasing entrepreneurial ac- An opportunity recognition is not there for tivity in most African developed countries only business students, but to all those who have not used appropriate methods to re- are willing to embark in any entrepreneur- alize the contribution of entrepreneurship ial activities.
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