PROMOTING ENTREPRENEURSHIP EDUCATION IN SOUTH AFRICAN SCHOOLS A long term sustainability plan to unemployment, poverty and inequality By Ernest Boateng, Chief Operations Officer – South African Institute for Entrepreneurship African Renaissance Conference May 2016 23 May 2016

Areas Covered South Africa’s key challenges Education Profile Unemployment Profile Entrepreneurship Education South Africa’s State of Entrepreneurship A worldwide phenomenon Entrepreneurship Education in SA Schools South African Institute for Entrepreneurship Approach Concluding Thoughts

South Africa’s key challenges… With the a population is 54,96 million1 And 54% of population ( 27m people) living in poverty Youth in South Africa contribute around 36% to the total population Source –(figures)Stats SA, Mid-year population estimates (Statistical release P0302) - (picture) https://nationalplanningcommission.wordpress.com

A closer look… y kk

Too few jobs… The unemployment profile Unemployment rate estimated at 26.7% by March 2016 A projected unemployment rate 2016-2019 reveals that the rate will remain relatively unchanged between 24%-25% Youth unemployment is estimated at 54.5% www.trading economics.com

Unemployment in future years.. http://businesstech.co.za/news/general/77737/south-africa-unemployment-1994-2015/

Unemployment by level of education

Why high unemployment rate? Challenges facing education Fast growing population High inflation rate – 6.2% High interest rate – 7% Low investment drive Low GDP growth rate – 0.6% Job-shedding by formal employment sector Low propensity towards entrepreneurship www.tradingeconomics.com

The Education Factor Three top reasons for drop out rate “Of every 100 pupils that start school, only 50 will make it to Grade 12, 40 will pass, and only 12 will qualify for university”  Nicholas Spaull, (Education researcher, Stellenbosch University Economics Department)* Three top reasons for drop out rate No tuition fees available Education is useless/ not interesting Family commitments Source –General Household Survey (GHS) 2014 Report – Focus on schooling, pg 23, - *Nicollas Spaul, South Africa’s Education Crisis: The quality of education in South Africa 1994-2011

The education factor

Results… About 54.5% youth unemployment, critical in rural areas Unprepared or unskilled job seekers About 33% households receive main income from welfare Necessity/Reluctant/Needs-Based Food on the table tonight Would take a job if can get one http://businesstech.co.za/news/general/77737/south-africa-unemployment-1994-2015/

National Development Plan Eradicating poverty Reducing inequality Growing the economy by an average of 5.4% Reducing unemployment rate to 6% by 2030

State of Entrepreneurship in SA SA has low level of entrepreneurial activity It is lagging behind other developing countries in the area of entrepreneurship 41% of adult population perceives entrepreneurship as an opportunity 45% of adult population perceives having the skills to start businesses. Sub-Saharan Africa have perception of an average above 60% for the same measures Source- Global Entreprenuership Montitor 2015 report, World Economic Forum

SA’s entrepreneurial ecosystem SA ecosystem positively progressive but still not a sufficient entrepreneurial ecosystem Majority of SA’s entrepreneurial conditions remains insufficient as most values are below 4.5 Basic-school entrepreneurial education and training being one of the weakest conditions Entrepreneurial conditions are assessed on a scale of 1=highly insufficient to 9=highly sufficient South Africa Source-Nation Expert Survey Measures 2015, GEM 2015 report, World Economic Forum

Addressing the Entrepreneurship Challenge! We need a dynamic culture of entrepreneurship in South Africa that promotes entrepreneurial behaviour and the creation of self employment opportunities Solution = Entrepreneurship Education in Schools

Current Educational Realities – Classroom World Traditional classroom delivery is predominately theoretical knowledge. Talk and chalk teaching style. Poor teacher prestige and recognition resulting in low teacher moral. Little or no exposure to entrepreneurship experiential learning. No spirit of enterprise and entrepreneurship among learners and teachers at all levels. Current curriculum doesn’t include much of the related entrepreneurial training programmes: 20% – 30%. Performance is based on assessments and marks driven.

Education as it should be… REAL WORLD INNOVATION TECHNOLOGY ENTREPRENEURSHIP PROBLEM-SOLVING ORIENTED

How do we attain a dynamic culture of entrepreneurship in SA? Introduce entrepreneurship at the early school age of learners’ education across all learning areas Adopt 21st century methods and tools to develop appropriate learning environment for encouraging creativity, innovation and ability to ‘think out of the box’ to solve problems. Curriculum-aligned materials with innovative teaching and learning techniques/tools Develop entrepreneurial skills and mind-sets in educators as well as learners.

The Entrepreneurial Educational Impact Traditional Classroom Delivery Entrepreneurship Culture in the Classroom Entrepreneurial Learner Creative, Critical thinker, Resourceful, Opportunity seeker Entrepreneurial skills Entrepreneurial mind-set Interactive experiential learning Performance Learner Passive, knowledgeable, Non risk takers, Accepts status quo Outcome based attitude Marks driven Theoretical knowledge VS Learner develops life skill to navigate and change current SA market realities Learner develops survival skills to adapt in current SA market realities SA’s Market Reality = High youth unemployment, Technology New Age, Extreme Inequality, Social Exclusion, High crime level, Poverty, Unstable jobs, Slow economic growth, Low entrepreneurial activity , Labour skills imbalance

Can Entrepreneurship be Taught? Natural-Born Entrepreneurs Socially prepared Entrepreneurs Educationally prepared Entrepreneurs

Entrepreneurship in Schools – Global Lessons Belgium Denmark An Action Plan for Entrepreneurship Education 2011-2014 was launched The objective was towards entrepreneurship and self- employment A strategy for education and training in entrepreneurship (2009) was developed It describes an active investment in entrepreneurship training at educational institutions. Source: -Entrepreneurship Education at School in Europe National Strategies, Curricula and Learning Outcomes, March 2012, Education, Audiovisual and Culture Executive Agency

And more lessons … Norway Sweden The 1st strategic plan for entrepreneurship in education and training ran from 2004 to 2008. An action plan was implemented – Entrepreneurship in Education and Training –and made compulsory in schools to higher education from 2009- 2014. The main objective is to strengthen the quality and scope of entrepreneurship education and training at all levels and areas of the education system. A Budget Bill 2009 was made, for the teaching of entrepreneurship to be an integrated theme throughout the education system. In May 2009, the Government presented its strategy for entrepreneurship in the field of education, The strategy was aimed at encouraging the integration of entrepreneurship into all levels of education are described. Source: -Entrepreneurship Education at School in Europe National Strategies, Curricula and Learning Outcomes, March 2012, Education, Audiovisual and Culture Executive Agency

South African Institute for Entrepreneurship Approach Developing entrepreneurial skills Provide simulation based experiential learning environment Unlocking the Entrepreneurial mind set SAIE has a unique element embedded in every learning tool, activity and process: OUR KEY Entrepreneurial drivers 14 E-drivers 14 E-drivers For all learners to behave entrepreneurially 14 E-drivers

Key Entrepreneurial Drivers Working as a team Key Entrepreneurial Drivers A sense of adventure A sense of wonder Taking initiative and risk Questioning Looking for opportunities Thinking flexibly Tapping into interest Thinking resourcefully Thinking critically A sense of determination Thinking creatively Thinking independently

South African Institute for Entrepreneurship Approach What we do… Develop simulation based innovative materials Apply creative methodology Provide educator entrepreneur training Promote entrepreneurial learning activities Provide learner support KEY ENTREPRENERIAL DRIVERS

SAIE Reach - School Entrepreneurship Programme

Our achievements in the past year

Our achievements in the past year

Schools Entrepreneurship Survey – 1121 Learner Responses

Concluding Thoughts Entrepreneurship is key to addressing SA challenges and closer to achieving NDP 2030 Goals There needs to be a focus on encouraging entrepreneurship in schools and building a strong entrepreneurship ecosystem. Collaboration among key role players - Government, Business, Schools, Educators, Learners, NGO’s, Communities – is critical to achieving targeted milestones.

“Building a culture of entrepreneurship in schools requires a fundamental rethinking of educational systems, both formal and informal, as well as the way in which teachers or educators are trained, how examination systems function and the way in which rewards, recognition and incentives are given” Source: World Economic Forum, Educating the Next Wave of Entrepreneurs, Executive Summary, A Report of the Global Education Initiative, pg 9

Ernest Boateng ernest@entrepreneurship.co.za 074 401 6247 Thank you Ernest Boateng ernest@entrepreneurship.co.za 074 401 6247