Enabling Entrepreneurship Technical Task Team Basic Education, Higher Education, FET and SMME workstreams

1. Enabling Entrepreneurship Technical Task TeamBasic Education, Higher Education, FET and SMME workstreams HRDC Summit 4 March 2014 Dr Taddy Blecher

2. 11 Million new jobsneed to be created by 2030 according to the NDP Million jobs If current statistics hold, 7.7m of the additional jobs would need to be provided through SMMEs Entrepreneurship and entrepreneurs MUST be developed, encouraged and supported

3. Extensive research was conducted to understand the current reality • Over 200 meetings, workshops and consultations • Over 700 studies on Entrepreneurship in SA catalogued, analysed, synthesised, and summarised • Multiple research studies • Basic Education on 7 countries • Higher Education survey with 20 SA Universities, 12 Business Schools • FET interviews and surveys of more than 20 colleges • National Portal research of over 50 countries • Entrepreneurship Training Research - 120 govtand private • National Entrepreneurship Councils - 7 countries

4. South Africa has the lowest levels of entrepreneurship and education in Africa *140 out of 144 countries worldwide ** 2nd lowest in the world Phases of entrepreneurship Source: GEM South Africa report 2012

5. In terms of raising and supporting entrepreneurs, the situation is concerning Schools: Non-business studies students spend a maximum of 100 hoursbetween Grade 1-12 on entrepreneurship (8 hours per year). Business Studies students learn business theory, but not entrepreneurship FET Colleges: “We estimate that less than 1 student in 10 at FET colleges learns anything about entrepreneurship. Less than 1 in 100 graduates starts a business” Chief Director DHET Universities: 95% of university staff interviewed felt that universities in South Africa are not sufficiently entrepreneurial

6. In terms of raising and supporting entrepreneurs, the situation is concerning (Cont) 4. SMME’s: 62% of entrepreneurs surveyed feel government makes it more difficult for them to operate (tax regime, compliance requirements, etc.)* 5. New Ventures: less than 2 in 100 new ventures in most government training programmes are making it beyond 2-years

7. There are some good things happening… • Renewed focus on developing and growing township and rural businesses through the informal sector strategy and other incentive schemes • New BEE legislation greatly favours opportunities for small black business • Two Centres of Entrepreneurship at FET Colleges have been launched

8. There are some good things happening…(Cont) • Incubation Support Programme • SETAs’ strategy to offer small business development programmes • dti red-tape reduction initiative • DTI and DED collaboration initiatives (as well as SEFA and SEDA and so on)

9. To achieve the NDP goal, entrepreneurship MUST take centre stage • Educa-tion Entrepreneurship education needs to be included at schools, FET Colleges, Universities and across broader society Entrepreneur- ship • Culture A culture of entrepreneurship must be developed through education, media and PR • SME support All aspects of the entrepreneurship ecosystem must be optimised • Enabling environ-ment Removal of administrative burdens to ensure ease of doing business

10. 1. Schools: Build an entrepreneurial mindset in learners • Collaborate with the Foundational Learning task team to improve foundational skills • Implement an entrepreneurial curriculum for learners in all grades (including associated 21’st century skills) • New teachers’ education related to these fields is required for new and existing teachers • Actively encourage businesses to engage with local educational institutions

11. 2. Universities: Support students and build towards entrepreneurial universities • Position entrepreneurship education at a strategic level • Focus Universities efforts on their own students • Establish Entrepreneurship centres at all Universities

12. 2. Universities: Support students and build towards entrepreneurial universities (Cont) 4. Include in the University funding formula support for Innovation Outputs that can lead to IP and job creation 5. Develop partnerships to advance entrepreneurship education • Recognise and empower FEDCI to drive the agenda 6. Measure and track entrepreneurship initiatives

13. 3. FET Colleges:Give entrepreneurship strategic focus at leadership level • Position entrepreneurship education at a policy and strategic level. One Entrepreneurship course should be mandatory for every FET student, in any discipline. • Review curriculum, pedagogical approach and assessments • Develop educators who teach entrepreneurship • Establish a national office for entrepreneurship education and development

14. 3. FET Colleges: Give entrepreneurship strategic focus at leadership level (Cont) 5. Profile entrepreneurship as a worthy pursuit and encourage interactions with small businesses 6. Focus on placing graduates in small businesses for internships, mentoring and skills 7. Develop a life-long support ecosystem for FET graduates (internet, mobile)

15. 4. SMME’s: Establish a massively scalable ecosystem of support (1 of 2) • Entrepreneurial assets • Develop a New National Portal and National Virtual Incubator (one stop shop) • Provide support tools and methods to access funding • Provide support to mid-sized SMEs to practice sound financial management and maintain adequate records • Provide open access to business education and tools • Business support • Raise awareness of Government programmes and public reporting. Track results transparently. Use selection systems. • Incubators should provide new businesses with full ecosystem • Stimulate and encourage the formation of an Institute of Business Service Providers for accreditation of BSP’s to monitor quality standard, ethics, etc.

16. 4. SMME’s: Establish a massively scalable ecosystem of support (2 of 2) • Policy accelerators • Develop legislation that differentiates between the big business and SMME segments • Reduce the red tape to improve “the ease of doing business” • Relook at the labour laws relating to hiring and firing • Establish an EFFECTIVE multi-stakeholder umbrella body of a National Council for Small Business and Entrepreneurship • Establish a dedicated SMME research capacity • Culture of entrepreneurship • Establish a team to craft an integrated national strategy to foster entrepreneurship throughout society • Turn entrepreneurs into heroes

17. There is a lot to be done but it is doable – together we can build an entrepreneurial SA

18. Thank you Follow the summit@ #hrdcsummit