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IOL News
12 hours ago
- Business
- IOL News
Entrepreneurship in basic education will contribute to a job-creating economy
The Department of Basic Education's (DBE) ongoing integration of entrepreneurship education into schools, driven by its E³ (Employability, Entrepreneurship, and Education) initiative, is both timely and urgent, says the author. Image: AI LAB South Africans remain resilient and determined, despite their continued efforts to deal with the challenges of youth unemployment, crime, and poverty. Recent reports from Statistics South Africa show that the youth unemployment rate is 46.1% for the 15-34 age group, 62.4% for the 15-24 age group and 40,4% for the 25-34 age group; these statistics indicate a crisis that requires deliberate intervention. The Department of Basic Education's (DBE) ongoing integration of entrepreneurship education into schools, driven by its E³ (Employability, Entrepreneurship, and Education) initiative, is both timely and urgent. Recently making headlines through its new partnership with the European Union, the DBE has entered a critical phase of implementation that goes beyond theory. The focus is now on embedding practical, challenge-based entrepreneurial learning into the national curriculum (CAPS), starting from the foundation phase. With youth unemployment at crisis levels, this initiative represents a strategic shift towards preparing learners not only for the job market but to become job creators in a rapidly evolving economy. This initiative is a great step toward addressing our country's many socio-economic challenges. According to the CEO and Founder of Centennial Schools, Shaun Fuchs, the challenges we have start with our education curriculum at the basic level. He believes that while South Africa does not have as immense entrepreneurial potential, the education system must do more to equip young people with the skills and mindset to build sustainable businesses. Entrepreneurship has been shown to have a positive impact on various aspects of society, including economic growth, job creation, and social mobility. However, it is quite difficult to be an entrepreneur in South Africa. The most recent Global Entrepreneurship Monitor (GEM) South Africa Report (2023/24) shows that entrepreneurial activity exhibited notable variation across different age groups. In 2023, the highest entrepreneurial engagement levels were observed among individuals aged 25-34 and 55-64, with 18,3% and 19,8%, respectively. In contrast, the youngest age group (18-24 years) demonstrated the lowest level of engagement, with only 10,6% involved in entrepreneurship. This disparity suggests that younger South Africans may encounter more substantial barriers to entering the entrepreneurial ecosystem, potentially due to limited access to resources, networks, or entrepreneurial education. These patterns underscore the necessity of targeted support measures for younger and middle-aged prospective entrepreneurs, enabling them to fully realise their innovative potential and contribute meaningfully to the economy. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Advertisement Next Stay Close ✕ Where is the problem, and should we put all the responsibility in the education system?As much as we cannot rely on education alone, entrepreneurship education is a solution that can help learners develop essential and relevant skills such as problem-solving, critical thinking, creativity and innovation, opportunity recognition, resilience, leadership, financial literacy and teamwork. These skills are not only valuable in entrepreneurship but also highly valued by employers, making learners entrepreneurial and employable. To address South Africa's high unemployment rate, the basic education system must shift its focus from preparing learners solely to participate in a job-giving economy to enabling them to actively contribute to a job-creating economy, in addition to the job-giving economy. Traditionally, schooling has emphasised compliance, exam preparation, and readiness for formal employment as the sole path to success. This model reinforces dependency on the government and corporate sectors for job opportunities. If we are intentional about embedding entrepreneurial thinking, problem-solving, and value-creation skills early in the curriculum, the education system can nurture a generation of learners who view themselves as future job creators, not just job seekers. However, this approach requires integrating practical entrepreneurship education, design thinking, and local economic understanding into subjects across all phases. Such a shift will promote self-reliance, community upliftment, and long-term economic resilience. One example is the tt100 Learnership/Internship Programme, which has equipped hundreds of unemployed young South Africans with valuable skills in partnership with The DaVinci Institute, the Department of Science and Innovation (DSI) and others. Supported by the DSI since 1994, this youth empowerment programme showcases and recognises the role of leadership in the management of innovation, and sustainable development with the view to creating an enabling environment for a capable state, through innovation and development of people skills and the capacity of citizens. These are the routes we must take to bring the concept of a job-creating economy into the basic education system, which aligns strongly with South Africa's national economic goals. Due to the country's high levels of youth unemployment outpacing job creation, shrinking formal sectors, automation and public sector overload, sole reliance on a job-giving economy where employment is expected from the government or corporations is no longer sustainable. Shifting the focus of basic education towards nurturing entrepreneurial thinking, self-employment, and value creation, learners can be empowered from an early age to become active economic participants. This approach supports several national priorities, including reducing youth unemployment, growing the small business sector, and fostering inclusive economic participation. It also contributes to economic transformation by promoting a shift from consumption to production, enabling innovation, and reducing dependency on the state for employment. This is in direct alignment with policy frameworks such as the National Development Plan (NDP) 2030, the Economic Reconstruction and Recovery Plan, and the White Paper on Post-School Education and Training, all of which highlight the importance of entrepreneurship, skills development, and job creation. I believe that if we are intentional about positioning entrepreneurship as a core outcome of the basic education system, it will help build a resilient, self-sufficient society equipped for the future.
IOL News
05-06-2025
- Business
- IOL News
Cash Me If You Can: South African MSMEs' Audacious Treasure Hunt
South African MSMEs are facing significant challenges in securing formal finance, despite their crucial role in the economy, says the author. Image: AI LAB Grab your flying drone with the eye of an eagle and a robust pair of Shosholoza gumboots, because South Africa's micro, small, and medium enterprises (MSMEs) are once again marching through the African financial jungle in search of the elusive Goose that lays legendary Kruger Rands. Having wrapped up May with a modest 0.25% reduction in repo rates from our responsible uncle, the Reserve Bank, Governor Lesetja 'Data Dependent' Kganyago, we also acknowledge the release of the Finfind South African MSME Access to Finance Report 2025, where MSME data meets the risk profile drama and access to funding proves elusive. According to the report, over 70% of MSMEs in South Africa earning revenue below R1 million per annum are still struggling to secure formal finance. Yes, you read that right; the MSME economic genocide (Mr Trump, please check this one out, too). Despite all the glossy brochures and heartwarming "We Support Township Economy" slogans, most entrepreneurs still see no light at the end of the business loan tunnel. The report affirms that MSMEs aren't just part of the South African economy — they are its favourite black tax family member. They hustle hard, contribute over 40% to SA's GDP, and employ more than 60% of the nation (yes, including your white cousin with his last-mile delivery bakkie). Despite MSMEs carrying more than one-third of the GDP, the golden egg bowl is mysteriously missing from the funding game for startups and early-stage businesses. The report confirms that the demand for business loans is sky-high, but the supply is dololo (non-existent). Even more concerning is that inclusive startup finance packages don't even make the top 10 list of offerings from most funders. For many MSMEs, walking into a bank feels like auditioning for a Mr. Bones movie: you're instantly thrown into the jungle of awkward financial rituals. One of the biggest mood-killers for MSMEs trying to secure funding from banks and Development Fund Institutions (DFI) is the Table Mountain of 38 stacks of paperwork. If anyone thinks I'm being economical with the truth, please grab your binoculars and look at page 65 of the report. Between the endless forms — certified this, stamped that — it's less about 'access to finance' and more about 'Amazing Race: Bureaucracy 3rd Edition' kind of stuff. The anti-gospel is that it has been an unblessed seven-year journey of zero regulation on MSME credit data sharing. That's right, creditors are still playing 'black mampatile' - hide-and-seek with MSME credit data. Due to a lack of information, most MSME funders default to the good old 'let's just check the owner's personal credit score' method. If your business has no data trail, they judge you by how you pay your Woolies account. Fair? No comment. Fintechs, on the other hand are encroaching on the MSME missing middle with sleek apps and quicker approvals, while banks and DFIs remain stuck in the slow lane of requesting audited statements that small businesses can only dream of. But hold on, before you get super excited! While digital platforms are fast, they often have interest rates so high that they could make MSME owners faint right in front of the bean counter. This could even be a worse incident if you fall under the group of 60% MSMEs that lack collateral, and 85% of them operating without insurance. God forbid! Sure, it's easy to blame the banks — and yes, sometimes they do behave like the blue light brigades of finance, allowing only the 'VIP businesses' through. But let's be honest: as MSMEs owners, we also need to take a long, hard look at ourselves. Running a business without credible financial records, with no receipts, and with a 'we'll sort it out later' attitude won't cut it. We should not be shocked when funders ghost us. Access to finance begins with access to our own numbers. Despite the missing pieces, the report ends on a high note, not quite a drone crash, but a hopeful soft landing. It calls for dedicated startup funds that target the sectors where demand is hotter than a Durban summer. It proposes a future anchored in Public-private partnerships, with co-investment in bold ideas from early-stage businesses. And while we're dreaming big, the focus should be on 'blended finance with entrepreneurship development, combining loans with intensive training, mentoring, and support for young entrepreneurs. Before we count the eggs before the chicks, the report recommends that most MSMEs need a crash course in Finance 101. That means improving financial literacy so MSMEs can manage their money better and implement payroll systems that don't forget to pay staff at the end of the month. On top of that, the report also acknowledges that many small businesses need a funding makeover — a proper funding and credit readiness check to spot the gaps before the big ask. MSMEs should avoid rocking up to a bank without proper documents, like wannabe refugees showing up at a visa office with fake documents, while expecting to fly where others long to go (US dream, of course). MSMEs should seek solid pre-funding support that helps them prep their funding applications, round up the 38-stack paperwork, and impress the Artificial Intelligence (AI) assessor before the robot in suits invites them to sit across the table. Sons and daughters of Africa, pay attention to the wise words of this report to avoid a real-life episode of Cash Me If You Can. If you follow this advice, you will become a brave treasure hunter, able to navigate red tape traps, decode paperwork puzzles, and survive the jungle of financial rituals. Bon Voyage, audacious folks, and be careful, don't be caught in Macron's flight drama!
