By Irrshad Kaseeram Faculty of Commerce Administration and Law The Response University of Zululand to Entrepreneurship Challenges in Northern KZN By Irrshad Kaseeram Faculty of Commerce Administration and Law

National Context & Its Impact on Entrepreneurship Self imposed constraints – eg. reshuffle Credit down grade, low business confidence, low & declining investment Low growth 2016 GDP Growth = 0.3% 2017 GDP Growth =1% (revised upward- too low to solve our problems) High income inequality, unemployment & poverty A weak job-creating capacity high unemployment under-employment persistent poverty and inequality. Unemployment is at its highest level ever (27.6%), with an expanded rate of over 40% and youth unemployment at over 65%. Advantage we have is that about 50% of the population is under 24 years old – this is a huge potential advantage

High growth businesses create employment It has never been more important or urgent for South Africa’s policy makers to make a strong commitment to growing the economy. Entrepreneurship is about risk taking individuals with high aspirations, who seize opportunities & ensure start-up growth aiming to achieve high growth businesses. High growth businesses create employment

South Africa’s Priority A key priority is to introduce reforms aimed at fostering a more enabling business environment, particularly for the SMMEs which contribute so much to employment. Research has shown there has been job destruction among SA SMMEs and job creation among big businesses. In many developing economies, small businesses have been shown to contribute substantially to job creation, economic growth and more equal income distribution.

We have great potential! SA is the Entrepreneurship Leader on the African Continent SA is ranked 55 out of 137 countries (Botswana is ranked ahead of us) We can compete on the global stage We are better than our peers in competition, product and process innovation We are closer to China than Russia or Brazil When it comes to technology absorption We are more like Russia and Brazil (however we can do better!) Although we are very competitive in the businesses that we start BUT !!!

There is not enough new business growth – we are weak on: Start up skills; Risk capital; Technology absorption; Human capital; Social capital; Red tape Skills shortage to close the frontier Gap ito the usage of the best technologies Inflexible labour policies We lack Unicorns (companies > $1billion eg. Uber, AirB&B ) Lack of supportive infrastructure for start-ups – reduces level on innovation in the economy. Information asymmetry problem - Small Business Development Ministry and DTI have good policies and programme that are inaccessible to many. Broad band and digital technology must be made available cheaply, quickly and easy to use. (4th Industrial Revolution is upon us!!!)

Human Development & Education are critical!!! From Grade RR to Grade 12, Entrepreneurship must be made interesting and exciting. Entrepreneurship must be offered across all departments at tertiary institutions

UNIZULU’s Response We recognise more needs to be done to embed entrepreneurship in the curriculum across all Faculties. We see entrepreneurship is a praxis for socio-economic change Theory and practice (We Teach!, We Practice!) Involvement in Enactus!!! We were national champions in 2015 and runner’s up in 2016. This year we already finalists Social entrepreneurship skills among staff and students we see ourselves as Entrepreneurship Activists – Inclusive growth RET We working with Emisha Project and with Appalachian State University Changing the Entrepreneurship Ecosystem in King Cetshwayo District bring together of National government, local government, community emerging entrepreneurs chamber of Commerce and Banking Sector – ABSA being our business partners

What does Entrepreneurship Activism Entail? Form a working groups – Ecosystem (Govt, Business, University, Community, International Partners) Establishing a dedicated Entrepreneurship Centre Objectives: 1 - Socialise communities into entrepreneurship 2 -Socialising emerging entrepreneurs into technology absorption – digital technology 3 - Developing short courses accessible to communities 4 - Doing Enactus type work on a larger scale 5 - Interdisciplinary collaboration Scientists and Business Specialists 6 - Inducting Scientists/innovators to convert IP into commercialisable ventures 7 - Making Entrepreneurship a Research Niche Area (RNA)

Siyabonga Thank You