How businesses can help graduates

Degrees Without Direction: Can Entrepreneurship Rescue South Africa’s Jobless Graduates?

Manmohan, M. (2025) Youth unemployment and the entrepreneurship paradox in South Africa. bhive Enterprise Development Centre, North-West University. Available at: https://www.citizen.co.za/news

Youth unemployment hovers at crisis levels, and many graduates struggle to find stable work in South Africa. Entrepreneurship, often touted as a remedy, is still seen by many as a last resort rather than a viable career path. The result is a paradox: at a time when the economy urgently needs new ventures, the very people best positioned to create them hesitate to take the leap. “The socio-economic barriers are real,” says Martin Manmohan of the bhive Enterprise Development Centre at North-West University (NWU). “Many of our young graduates lack personal savings or collateral to secure loans.

 Venture capital and angel investment ecosystems are still developing and often favour experienced entrepreneurs, rather than side-hustles and start-ups. With limited job opportunities, graduates tend to prioritise stable employment over risky entrepreneurial ventures.” “We should establish an enterprise development fund to support emerging businesses,” he suggests. “Alongside funding, we must provide non-financial services such as business plans, financial projections and mentoring. Our final-year and master’s students in accounting and business can contribute directly to these efforts.” Money is only one part of the puzzle. Equally vital are networks, which many graduates from disadvantaged backgrounds lack. “Graduates may not have access to mentors, industry contacts or professional networks.

This isolation hinders idea validation, partnerships and market access,” Manmohan explains. To address this, NWU convenes networking sessions that connect students with industry partners, government agencies and organisations such as the SAB Foundation, Black Umbrellas and the National Youth Development Agency. Universities themselves are implicated. “While we teach theory well, many institutions lack practical entrepreneurship training, such as financial literacy, business planning and digital marketing,” says Manmohan. “We also need to support students with soft skills like negotiation, leadership and resilience, which are often underdeveloped.” Bureaucratic obstacles add another layer, as red tape and compliance rules discourage many would-be founders before they begin.

Cultural expectations can be just as powerful. Families often push graduates towards “safe” careers, while others see entrepreneurship as unstable or unsuitable, particularly in poorer communities. “Most of our students lack confidence, or in some cases, they’re overconfident. Both need careful guidance,” says Manmohan. “Fear of the unknown also holds many back, as they simply have little exposure to entrepreneurship.” Manmohan insists that resilience and leadership training must form a core part of entrepreneurship education.

“We already offer experiential modules, bootcamps and mentorship programmes. Students can role-play leadership situations, engage in peer-led resilience circles, and take part in ‘fail-forward’ workshops where failure is treated as a learning opportunity,” he says. “But participation is low, because entrepreneurship is not yet seen as a key activity by students.” He believes storytelling has a role. “Most South African entrepreneurs start with little or no capital. Take Theo Baloyi, who built Bathu from scratch, or Soweto’s Nokuthla Tshabalala, who began collecting waste by hand and now employs 12 people through her company Trash2Treasure.

These stories prove that resilience and vision can overcome extraordinary odds. Students need to see these examples and realise entrepreneurship is possible.” For Manmohan, the missing piece is partnership. “Real-world exposure, access to resources and infrastructure, industry mentorship and coaching, seed funding, skills transfer, market validation these are what make the difference,” he argues. “Universities cannot nurture entrepreneurs in a vacuum. Collaborations with incubators, local businesses and government ensure that student ventures align with community needs and promote inclusive growth.

” The task, he believes, is urgent. If South Africa is to reduce youth unemployment, diversify its economy and unlock growth, it must reframe entrepreneurship from a fallback option to a first choice. That requires systemic support, including funding mechanisms, network-building, practical training, and, above all, a cultural shift that rewards resilience and innovation. “Entrepreneurship builds discipline, character and lifelong friendships,” Manmohan concludes. “But with passion comes the responsibility to equip our graduates with the tools, confidence and networks to succeed. If we do this, we will not only create businesses but build a more resilient economy for South Africa’s future.”

From Crisis to Catalyst: Reframing Entrepreneurship for South Africa’s Youth

In South Africa, youth unemployment remains one of the most pressing socio-economic challenges of our time. With thousands of graduates entering the job market each year, many find themselves disillusioned, underemployed, or entirely excluded from formal employment. Yet, amid this crisis lies a powerful opportunity   one that could reshape the future of the country’s economy: entrepreneurship.

Martin Manmohan, of the bhive Enterprise Development Centre at North-West University (NWU), believes the solution begins with a mindset shift. “Entrepreneurship is still seen as a last resort,” he says. “But it should be a first choice   a path to independence, innovation, and impact.”

The Barriers Are Real  But Not Insurmountable

For many young South Africans, the leap into entrepreneurship is hindered by a lack of savings, collateral, and access to funding. Venture capital and angel investment ecosystems remain nascent, often favoring seasoned entrepreneurs over fresh graduates with side-hustles and start-up dreams.

“Money is only one part of the puzzle,” Manmohan explains. “Equally vital are networks, mentors, and exposure   things many graduates from disadvantaged backgrounds simply don’t have.”

NWU is tackling this head-on by hosting networking sessions that connect students with industry partners, government agencies, and organisations like the SAB Foundation and the National Youth Development Agency. These platforms offer more than just contacts   they offer validation, collaboration, and market access.

Universities Must Do More Than Teach

While academic institutions excel at delivering theory, Manmohan argues that practical entrepreneurship training is often lacking. “We need to teach financial literacy, business planning, digital marketing   and soft skills like negotiation, leadership, and resilience,” he says.

NWU has introduced experiential modules, bootcamps, and mentorship programmes. Students engage in role-play leadership scenarios, peer-led resilience circles, and ‘fail-forward’ workshops that reframe failure as a learning opportunity. Yet, participation remains low   a symptom of entrepreneurship’s marginal status in student culture.

Stories That Inspire, Paths That Empower

Manmohan believes storytelling is key to changing perceptions. “Most South African entrepreneurs start with little or no capital,” he says. “Theo Baloyi built Bathu from scratch. Nokuthla Tshabalala began collecting waste by hand and now runs Trash2Treasure, employing 12 people. These stories prove that resilience and vision can overcome extraordinary odds.”

These examples aren’t just motivational   they’re transformational. They show students that entrepreneurship isn’t reserved for the privileged. It’s a tool for empowerment, especially in communities where traditional employment is scarce.

The Missing Piece: Partnership

“No university can nurture entrepreneurs in a vacuum,” Manmohan insists. “We need partnerships with incubators, local businesses, and government. Real-world exposure, infrastructure, mentorship, seed funding   these are what make the difference.”

He calls for an enterprise development fund to support emerging businesses, and suggests that final-year and master’s students in accounting and business could contribute directly to these efforts through consulting and mentorship.

A Call to Action

If South Africa is to reduce youth unemployment, diversify its economy, and unlock inclusive growth, it must reframe entrepreneurship as a viable, even desirable, career path. That requires systemic support   funding mechanisms, network-building, practical training, and a cultural shift that celebrates resilience and innovation.

“Entrepreneurship builds discipline, character, and lifelong friendships,” Manmohan concludes. “But with passion comes responsibility. We must equip our graduates with the tools, confidence, and networks to succeed. If we do this, we won’t just create businesses we’ll build a more resilient economy for South Africa’s future.”

I’ve seen the fear in the eyes of graduates who hold degrees but no direction. I’ve felt the weight of uncertainty, the pressure to choose “safe” over bold, and the silence that follows when dreams are dismissed as unrealistic. But I’ve also seen sparks  in bootcamps, in resilience circles, in stories like Theo Baloyi and Nokuthla Tshabalala   that prove something extraordinary: entrepreneurship is not reserved for the privileged. It’s a fire that can be lit in anyone.

We are not just fighting unemployment. We are fighting for belief   belief that our ideas matter, that our communities deserve innovation, and that our youth are not just job seekers but job creators. The barriers are real, but so is our potential. And when universities, industries, and communities come together to nurture that potential, we don’t just build businesses   we build futures.

This is personal. Because every young South African deserves more than survival. They deserve the chance to lead and to build.