Combating Unemployment in South Africa through Entrepreneurship Education
Introduction
South Africa faces an unemployment crisis that ranks among the highest in the world. The national unemployment rate stands at around 33%, with youth unemployment even higher. These figures are more than statistics – they reflect millions of lives struggling to find work in a stagnant job market. This challenge is not just economic; it is deeply social, fuelling inequality and frustration. In this context, traditional solutions alone are falling short, and many are asking: how can we create more opportunities for our people?
One compelling answer gaining traction is entrepreneurship education. By equipping people – particularly the youth – with the mindset, skills, and support to start their own ventures, South Africa can shift from merely seeking jobs to also creating them. Instead of relying solely on a limited number of corporate or government positions, entrepreneurship empowers individuals to become job creators. A national focus on cultivating entrepreneurs is emerging as a strategic priority to combat unemployment and drive inclusive growth.
In the pages ahead, we highlight key statistics, the policy context, challenges to implementation, and practical success stories, noting along the way how players like Duja Consulting contribute to this evolving ecosystem.
The Unemployment Challenge in Context
Unemployment in South Africa is a long-standing and complex problem, especially among the youth. As of early 2024, nearly half of young people aged 15–34 were unemployed, a far higher rate than among older adults. Among the youngest job-seekers (under 25), the situation is even more dire, with roughly 60% of 15–24-year-olds unable to find work. These levels of unemployment are not only a tragic waste of human potential but also a threat to social stability – idle and frustrated young citizens can fuel unrest and crime.
There are structural reasons behind these numbers. Years of low economic growth and a mismatch between the skills people have and the jobs available mean that the formal sector cannot absorb all the new entrants to the labour market. This is why attention has turned to small businesses and start-ups as engines of employment. The National Development Plan 2030 projected that 90% of new jobs would come from small and expanding firmsscielo.org.za – underlining how vital entrepreneurship is to the country’s future job creation.
Yet, despite this importance, our entrepreneurial landscape has struggled to reach its potential. According to a recent review, South Africa has over 2 million micro, small and medium enterprises (MSMEs), representing 98% of all formal businesses – yet they account for less than a third of formal jobs. Job creation remains highly concentrated in a few large corporations and government agencies, rather than spread across a vibrant small-business sector. Part of the issue is the high failure rate of new ventures: about two-thirds of small businesses fail within the first five years (and 20% don’t survive even two years). Additionally, around 70% of entrepreneurs operate in the informal sector, where businesses often stay small and have limited growth prospects. These factors dampen the ability of entrepreneurship to absorb more of the unemployed.
Another hurdle is cultural. For many, the education system and social norms long encouraged pursuing a stable corporate or government job, making entrepreneurship seem like a risky last resort. This is reflected in our national psyche: while plenty of South Africans do see business opportunities around them, nearly 60% of those who see a good opportunity still won’t start a business for fear it may fail. Consequently, only about 8% of adults in the country plan to start a business in the next few years – a strikingly low figure given our high unemployment. Clearly, if we want more entrepreneurs, we have to address this fear and lack of preparedness. That’s where education comes in.
Why Entrepreneurship Education Matters
If we want more people to successfully start businesses (and thereby create jobs), we need to teach and encourage them to do so. This isn’t just about adding a business studies class to the curriculum; it’s about instilling an entrepreneurial mindset from an early age and providing practical experience in how to build and run a venture. Education – when done right – can be the catalyst that turns more job-seekers into job creators.
Firstly, entrepreneurship education addresses the skills gap. Many young South Africans leave school or university without the practical skills needed to thrive. A would-be entrepreneur might have a clever idea but no clue how to write a business plan, manage cash flow, or navigate the red tape of registering a business. By integrating entrepreneurship training into school curricula, university programs, and community initiatives, we can equip youth with these essential abilities. For example, Junior Achievement South Africa finds that alumni of its high school entrepreneurship program are significantly more likely to start their own businesses – and even employ others – compared to their peers. Such programs also build financial literacy, teamwork and problem-solving skills, making youth more adaptable in any career.
Crucially, entrepreneurship education can also tackle the mindset problem. When students run a mini-business at school or university, they learn to take calculated risks and view failure as a learning opportunity rather than a catastrophe. This shift in mindset is vital in South Africa, where fear of failure has been a major barrier. With guidance and practice, education can instill the confidence to try and try again. Indeed, Statistics South Africa found that young people with some form of work experience are four times more likely to secure employment than those without any. By extension, a student who’s had a chance to run a small venture (even in a school setting) is far better prepared to make a real business work later on.
Policymakers have also put entrepreneurship on the agenda. There are moves to integrate entrepreneurship training into school curricula and expand practical skills training at colleges. Universities are rolling out initiatives (such as the EDHE programme) to encourage student start-ups on campuses. Meanwhile, the Department of Small Business Development is crafting a National Entrepreneurship Strategy to create a more enabling environment for entrepreneurs. These efforts reflect a broad consensus that we must prepare the next generation not just to look for jobs, but to create them.
Crucially, the private sector and civil society also have a role. Public–private partnerships – for example, businesses sponsoring incubators, hackathons, or youth entrepreneurship programmes – complement government initiatives and provide budding entrepreneurs with mentorship, funding, and networks that formal education alone cannot offer. Such collaborations ensure that entrepreneurship education is not just theoretical, but connected to real-world opportunities.
Challenges on the Road
Implementing entrepreneurship education at scale is not without hurdles. A key issue is quality and relevance. It’s not enough to introduce a subject called “Entrepreneurship” – the content must be practical and delivered by people with real business experience. Shifting a traditionally theory-heavy education system towards hands-on learning requires re-training teachers, updating curricula, and securing resources.
Another challenge is access and inclusivity. The communities that could benefit most (such as rural schools and township youth centres) often lack the resources to support new programmes. We must ensure that entrepreneurship initiatives reach under-resourced areas, not just well-funded urban schools. That means targeted funding and creative approaches – for example, community-based workshops, mobile incubator units, or partnerships with local NGOs – to bring training to the youth who need it most.
There’s also the matter of support beyond the classroom. You can teach someone how to write a business plan but turning that plan into a real startup requires funding, mentorship, and a friendly business environment. Currently, many young entrepreneurs struggle to secure startup capital. Banks often require collateral that first-time entrepreneurs typically don’t have, and applying for government grants can be intimidating or time-consuming. To bridge this gap, education programmes need to connect graduates with the broader ecosystem – from linking them to seed funding competitions, to providing ongoing mentorship and networking opportunities. Reducing red tape for small businesses will also help ensure that the entrepreneurial skills youth acquire can actually be put into practice.
Finally, it takes time to change mindsets. Many parents and young people still see a stable salaried job as the only secure path, and view entrepreneurship as too risky. Overcoming this cultural bias will require ongoing advocacy and, importantly, more visible success stories to show that starting a business can be a reputable and rewarding choice.
Success Stories and Signs of Hope
Despite the challenges, there are many success stories that illustrate the impact of entrepreneurship education and support programmes in South Africa. These stories serve as inspiration and proof that with the right tools, South Africans can and do build thriving businesses even in a tough environment.
At the government-supported Innovation Hub in Pretoria, over 250 start-up companies are incubated in sectors like biotechnology, green tech and ICT. This hub has also extended into townships through seven eKasi Labs, which have supported about 150 township entrepreneurs so far. By bringing resources and training to communities, initiatives like these give more youth a chance to develop businesses – and indeed, the Innovation Hub’s team believes that helping many small firms grow is key to denting the unemployment rate.
On the education front, the Gordon Institute of Business Science (GIBS) runs an Enterprise Development Academy that exemplifies how partnerships can support entrepreneurs. GIBS, with sponsorship from large companies, offers an intensive entrepreneurship education program for small business owners. To date, they have trained over 1,700 entrepreneurs through this academy, focusing on everything from business fundamentals to growth strategies. Notably, big corporates fund these courses as part of their social responsibility and supplier development goals, effectively investing in the next generation of entrepreneurs (and often potential suppliers or partners). Entrepreneurs get world-class training they might not afford otherwise, and corporates help strengthen the SME sector that the economy needs.
We also see inspiring individual journeys. Neil du Preez, the founder of Mellow Cabs, saw a gap in South Africa’s transport system and set out to fill it with electric mini-taxis. His entrepreneurial journey wasn’t easy – at one point he even sold his house to fund a prototype – but over time he secured an angel investor and later backing from the Industrial Development Corporation. Today Mellow Cabs employs about 20 people and is expanding its fleet and reach beyond South Africa. Neil’s story shows how one person’s innovation and perseverance can create jobs while solving a real problem.
Each of these examples – from tech incubators and business school programs to determined start-up founders – chips away at the notion that our unemployment situation is hopeless. They demonstrate that, given the opportunity and support, South Africans can be creators of jobs and not only seekers. Success breeds success: when young people see peers from their community start viable businesses, it changes mindsets and encourages others to pursue a similar path.
Duja Consulting’s Perspective and Role
At Duja Consulting, we see the fight against unemployment as a collaborative effort. Through our work in youth development and skills training, we’ve seen how entrepreneurship programs can foster innovation and create jobs. For example, our learnership and internship initiatives give young people practical workplace exposure – the kind of experience that builds confidence and can ignite entrepreneurial ambition. We also contribute by sharing insights and success stories on platforms like LinkedIn, hoping to inspire more organisations and leaders to support this ecosystem. By providing training opportunities and promoting entrepreneurial thinking, we aim to play a modest but meaningful part in empowering South Africa’s next generation of business leaders.
Conclusion
Entrepreneurship education is not a silver bullet, but it is a powerful tool in the fight against unemployment. By teaching young people how to build businesses and adapt to challenges, we equip them not just to find jobs but to create jobs – for themselves and others. In a country where formal employment is scarce, this kind of self-starting mindset can unlock new avenues of growth.
But education alone isn’t enough – we also need a supportive environment: business-friendly policies, access to finance, mentorship, and a cultural shift that celebrates entrepreneurs. Encouragingly, across South Africa, more initiatives – from incubators in townships to student start-up competitions at universities – are taking root, often through partnerships between government, industry and civil society.
For business leaders, supporting entrepreneurship education today will help cultivate the innovators and job creators of tomorrow. Whether it’s through mentorship programmes, funding a youth start-up contest, or encouraging intrapreneurship within your own company, your engagement can make a difference. By working together to empower our youth with skills and confidence to innovate, we can turn more job seekers into job creators. Over time, that shift can lead to a more inclusive and dynamic South African economy – one start-up at a time.
