Abstract
Although South Africa achieved positive economic growth rates since the advent of democracy in 1994, the formal sector has not been able to absorb the annual increasing number of job-seekers on the market and solve the unemployment problem. The exercise of entrepreneurship, through business formations and expansions, is regarded as a vehicle for job creation and output expansion. According the Global Entrepreneurship Monitor (GEM) reports, South Africa’s level of early stage total entrepreneurial activity (TEA) is rather low relative to other countries at a similar level of development. This is partly owing to skills and resource limitations. If more individuals could realistically be exposed to practical entrepreneurship education at the secondary school level, South Africa’s base for entrepreneurial capacity can be enhanced. This study uses quasi logistic regression to examine the probability of secondary school learners, in Pietermaritzburg, the capital of Kwazulu-Natal province in South Africa, to start their own business in the future. It also probes the association between the socio-economic attributes of these learners and entrepreneurship. On the basis of a survey of 275 senior school learners from 5 schools, the regression results indicate that gender, ethnic background and having a role model as well as acquiring personal skills to run one’s own business are significant factors influencing an individual’s propensity to venture into small firm self-employment in the future. Black learners are perceived to have a significantly greater disposition to enter into business than other groups, and male scholars are found to have a greater probability of starting their own business than female. As potential entrepreneurs do not necessarily come exclusively from a business family background, the supply of effective entrepreneurship can be augmented, if more young individuals with the relevant skills endowment can start opportunity firms and necessity ventures.
Highlights
South Africa registered positive economic growth rates since the advent of democracy in 1994, this economic expansion has not been accompanied by significant growth in employment
This study aims for an improved understanding of potential youth entrepreneurship among secondary school learners in Pietermaritzburg, in an attempt to determine their pre-entrepreneurial characteristics, their basic understanding of entrepreneurship and whether the school, gender and family environment influence nascent entrepreneurial behavior among the school learners
The sociodemographic variables as predictors are encoded as race (Black, Coloured, Indian or White), sex (Boy or Girl), residential area (Urban or Rural), parents own business (Yes or No), have ever worked at a small business (Yes or No), have a business role model (Yes or No) and exposed to entrepreneurial activity at school (Yes or No)
Summary
South Africa registered positive economic growth rates since the advent of democracy in 1994, this economic expansion has not been accompanied by significant growth in employment. South Africa achieved an average economic growth rate of 3 per cent over the period 1994-2003, around 5 per cent during 2004-2007 and 2.8 per cent in 2008 (SARB, 2009). After a period of contraction, amid global recession, during two quarters in 2009, the economy bounced back with a growth of 4.6 per cent in the first quarter of 2010 (SARB, 2010). Despite these robust growth rates in a strengthening economy, unemployment rates in postapartheid South Africa remain extremely high. There are signs of economic disillusionment as the South African economy has not generated enough employment opportunities to absorb an increasing annual number of school leavers. In the South African context, persons in the 15-35 age category are regarded as the youth group (National Youth Policy, 1997:7), from which future leaders and wealth producers of the South African economy will emerge
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