Abstract
This chapter addresses graduate unemployment through student entrepreneurship in the context of South African higher education. The graduate unemployment rate of South Africa is estimated at 33.5% for the youth (15–24) and 10.2% for those aged 25–34. Unemployed graduate phenomenon as depicted by the FeesMustFall campaign is exacerbated by untransformed curriculum which does not provide students with the relevant skills to match the labour demands. In this regard, this chapter argues that student entrepreneurship remains one of the strategies university-based youth or students could not only a space to gain business skills and experience, but also a forum where they can put their creative ideas into income generating projects. The chapter first looks at student entrepreneurship and the challenges faced by tertiary students. Second, it explores the opportunities created through entrepreneurship, the challenges faced by student entrepreneurs, and finally, the support needed to run successful student entrepreneurship.
TopIntroduction
Across the developed and developing nations, the problem of youth unemployment is perplexing and has reached a vantage point (Sankobe, 2019). Various reasons are attached to the bulging youth unemployment and subsequently graduate unemployment. In the context of South Africa, jobless growth, lack of requisite skills, poor education and a mismatch of acquired qualifications in labour market are among the key contributory factors towards rising youth unemployment and emerging graduate unemployment. It is, therefore, not surprising that unemployment among the young people is the highest in the country with 38.2% (Stats SA, 2018). Internationally, youth unemployment is the highest while in Africa the labour force is unable to create new and sustainable jobs for young people including those with college or university qualifications (James, 2019). Youth unemployment remains one of the major challenges estimated to be sitting at 53%, making it’s the highest in the world (McCauley, 2019, p. 4). The scourge of youth unemployment made President Ramaphosa to declare it a national crisis in May 2019 (James, 2019). Youth constitute 55.2% of the 6.2 million South Africans who are actively seeking jobs. This is worsened by the slow economic growth and lack of investment in youth programmes. The graduate unemployment rate in South Africa is estimated at 33.5% for the youth (15-24) and 10.2% for those aged 25-34 (StatsSA. 2020). Unemployed graduate phenomenon as depicted by the FeesMustFall campaign is exacerbated by the untransformed curriculum that does not provide students with relevant skills that match the labour demands.
In this regard, the chapter argues that student entrepreneurship is one of the strategies university-based youth or students could escape socio-economic challenges. Through student entrepreneurship, university youth (students) not only gain business skills and experience, but also a forum through which they are able to put their creative ideas into income generating projects (Tshishonga, 2020). Student entrepreneurship in a developing country like South Africa could be helpful in closing the employment gaps created by the prevalence of poverty, unemployment and income inequality. Student economic exclusion has been one of the major challenges faced by South Africa as it has a high youth unemployment rate of 55.2% which indicates some of the major economic participation issues faced by the youth (Stats SA, 2019). Since 2019, youth unemployment has increased at around 55.9% (StasSA, 2020). Students have watched their livelihoods being dictated by the high unemployment rates in the country and less effective government interventions to the solutions, which exclude them from their country’s economy.
It is against the growing rate of university youth unemployment and underemployment that this chapter interrogates student entrepreneurship as the pathway towards addressing the scourge of graduate unemployment in higher education. This chapter is qualitative in nature and uses document analysis in the form of accredited articles, books and book chapter, official government documentations to navigate the entrepreneurship as a panacea to address unemployed graduate challenge in the higher education sector.
Key Terms in this Chapter
Entrepreneurship: Entrepreneurship is defined as an activity that involves the discovery, evaluation, and exploitation of opportunities to introduce new goods and services, which have not existed (Mbhele, 2012 AU124: The in-text citation "Mbhele, 2012" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ). Therefore, in entrepreneurship, the entrepreneurs are exposed to new business that ascend in the face of risk and uncertainty.
Student Entrepreneurs: These are university or any higher education registered students who within their capacity decided to initial their own enterprises to meet their basic needs.
Student: Is a young person or any other person who is registered in a university or institution of higher learning to obtain his or her degree or qualification.
Unemployed Graduate: Is the situation whereby students graduate but still are unable to secure employment in the job market.
Student Entrepreneurship: Student entrepreneurship is the practise where student start and run their own businesses enterprise in order to generate their own income.