Harnessing Entrepreneurship Education for Economic Growth and Unemployment Reduction in the Era of Disruption

Introduction

The world has experienced a multitude of disruptive events recently, including COVID-19, political instability, technological innovations, climate change, cybersecurity breaches, and demographic changes. These changes have had significant effects on many sectors, including higher education (Allam, Bibri & Sharpe, 2022; Avula et al., 2022). In particular, the global economy has been hit hard, leading to massive job losses, the closure of businesses, economic downturns, and even deaths in many countries. Governments and central banks around the world have adopted stimulus packages, loan programmes, and interest rate cuts to cushion their economies from these challenges (IMF, 2022, Reuters, 2020). However, these measures have not been sufficient, as high inflation has reversed gains and put families in debt.

The global unemployment rate is on the rise, with South Africa leading the pack with an unemployment rate projected at 35.6% compared to the rest of the world in 2023 (World Economic Forum, 2023). Companies are hesitant to employ more people due to sluggish economic growth and tight labour laws, and in some instances, forcing some workers to accept lower paying positions (ILO, 2023a). In fact, empirical evidence indicates that a significant number of middle-market companies face challenges in terms of their capacity to attract, develop, and retain highly skilled employees due to limited resources (Calk & Patrick, 2017; De Smet, Dowling, Hancock & Schaninger, 2022). Adding to this, recent economic indicators reveal that the South African economy experienced stagnant growth during the first quarter of 2023, following a negative performance in the fourth quarter of 2022 (Stats SA, 2023a).

This alarming trend has a direct implication for higher education students as they enter the changing world of economies. On the other hand, the labour market is showing a growing gap between the skills that the market is supplying versus what the demand side wants. Many jobs remain unfilled while there are numerous graduates carrying qualifications that do not match the existing job requirements (HSRC, 2023). The current educational supply also lacks the necessary qualities sought by employers. Even though numerous demand-side economic strategies have been suggested and implemented, none of them seem to have had any discernible effect on the alarmingly high rate of unemployment. The gap between labour market demand and available educational opportunities remains a problem.

In June 2023, the Premier of Gauteng in South Africa launched an initiative aimed at addressing the pressing issue of unemployment in the province. It has been reported that 1.2 million people applied for just 8,000 positions (The Citizen, 2023). This starkly highlights the persistent and deep unemployment challenges faced by the youth in the country. Furthermore, the magnitude of the demand underscores the urgent need for effective strategies and comprehensive interventions to address this pressing socioeconomic issue. The current socio-economic landscape in South Africa presents a pressing concern, with a population of 60 million (Country meters, 2023) and a significant proportion (29.6 million) heavily reliant on social grants (Daily Investor, 2023). Of particular concern is the alarming trend observed in 2023, where out of the 13.5 million new social grant applications, a mere 716,000 were from tertiary graduates (Daily Maverick, 2023). This reality highlights the magnitude of the challenge faced by the country as it grapples with a high dependency ratio and an increasing number of unemployed individuals relative to the employed population. Each job loss holds substantial implications for society at large, exacerbating the already profound socio-economic disparities and hindering opportunities for sustainable growth and development.