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Limpopo Youth Franchise Expo and Entrepreneurship Promotion

Conference 2014

LEDET in Collaboration with LEDA

19-21 November 2014

THE ROLE OF UNIVERSITIES IN PRODUCING YOUNG ENTREPRENEURS

Dr MJ MalebanaTshwane University of Technology

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The significance of the event in view of the youth unemployment rate

• The youth are the worst affected group when it comes to unemployment.

• The recent Quarterly Labour Force Survey report of the 3rd quarter indicates that close to 73% of the youth are unemployed.

• Drastic efforts need to be taken in order to turn this situation around.

• Encouraging the youth to start their own businesses is one step in the right direction.

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The significance of the event in view of the youth unemployment rate (cont’)

• However, Global Entrepreneurship Monitor reports indicate that only about 25% of the youth can be considered to be potential entrepreneurs, i.e. they believe that they have skills and knowledge to start a business and there are good opportunities to start a business.

• 13% of the youth intend to start a business in the next three years.

• This event is one of the interventions that could stimulate youth entrepreneurship by contributing to the development of entrepreneurial intentions and even new start-ups.

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How can universities contribute towards youth entrepreneurship?

• In the past entrepreneurs used to be perceived as individuals who possess certain special traits/characteristics that differentiated them from non-entrepreneurs.

• However, research had shown that there is no real evidence of a single entrepreneurial personality.

• This gave promise for entrepreneurship education, as it became clear that people can be taught to become entrepreneurs.

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How can universities contribute towards youth entrepreneurship? Cont’

• As a result, the past four decades have seen an increase in the number of colleges and universities that offered entrepreneurship education.

• A growing body of knowledge shows that entrepreneurial activity is an intentionally planned activity.

• Universities can through entrepreneurship education promote youth entrepreneurship by stimulating the intentions of the youth to start their own businesses.

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How can universities contribute towards youth entrepreneurship? Cont’

• Exposing the youth to entrepreneurship education is vital in equipping them with the skills required to execute the entrepreneurial process.

• This exposure also helps in developing positive entrepreneurial attitudes, which together with perceived capability influence the intention to start a business.

• Universities can make entrepreneurship be regarded as a legitimate career option.

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How can universities contribute towards youth entrepreneurship? Cont’

The success of universities in producing entrepreneurs requires experiential teaching methods.

Entrepreneurship educators should make learning more practical.

Students should be allowed to experiment with their ideas within the protection of a university setting.

This requires partnerships between the government support institutions and universities for resources.

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How can universities contribute towards youth entrepreneurship? Cont’

• Involvement of existing entrepreneurs as guest speakers is vital for role modeling, inspiration and the acquisition of skills.

• The availability of resources for experimentation with ideas and interaction with entrepreneurial role models will contribute to the formation of entrepreneurial intention, engender positive entrepreneurial attitudes and enhance perceived capability to start a business.

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How can universities contribute towards youth entrepreneurship? Cont’

The effect of the environment on the intentionally planned nature of entrepreneurship

Entrepreneurial intention

Perceived capability/skills

Entrepreneurial attitudes

Behaviour=entrepreneurial activity

New start-upsGrowing ventures

Social norms

Environment:

Entrep educ in HEI

Entrepreneur-ial support

Media Social

perceptions and values

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Conclusion

Youth entrepreneurship development is not a one-sided intervention, it requires integrated efforts.• HEI can raise awareness of the importance of

entrepreneurship, equip the youth with skills and stimulate their intention to start a business.

• Societal perceptions and values about entrepreneurship, if not changed through the media can hinder the formation and implementation of intentions.

• The media is vital in portraying the image of entrepreneurship.

• Entrepreneurial support should be accessible to facilitate the transition from intentions to new start-ups and ultimately the growth of new ventures.

Corporate Affairs and Marketing (CA&M) Brand and Event Management

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THANK YOU