South Africa faces one of the world's most acute youth unemployment problems. According to the Labour Force Survey for the first quarter of 2026 by Statistics South Africa, more than six out of ten South African citizens aged 15 to 24 are unemployed.
Despite various government measures aimed at stimulating economic growth and job creation, the unemployment rate remains high, especially among young people entering the labour market. Consequently, entrepreneurship is actively promoted as a tool for economic development, innovation, and job generation.
As a result, entrepreneurship education has significantly expanded in universities, technical and vocational education colleges (TVETs), private higher education institutions, Sector Education and Training Authorities (SETAs), and government-supported enterprise development initiatives.
However, an important question arises: does entrepreneurship education lead to the emergence of sustainable entrepreneurs, or does it merely graduate students who know theory? Although thousands of students complete programs annually, institutions report on attendance and course completion rates, but much less attention is paid to whether these programs lead to business creation, employment, and long-term success.
Research shows that simply acquiring knowledge does not make someone an entrepreneur. More important is whether graduates establish enterprises, generate jobs, and contribute to overall economic outcomes, and whether the education received played a significant role in this process.
Existing programs often focus on classroom learning. Students may gain a deep understanding of business plans, marketing strategies, and financial forecasting. Nevertheless, many lack practical experience in implementing and sustaining businesses in competitive markets, creating a gap between theoretical knowledge and practical activity.
International data indicates that entrepreneurship education is most effective when integrated into broader entrepreneurial ecosystems. Neck and Greene (2011) argue that entrepreneurship should be taught as a method, not just as a set of knowledge. This requires students to participate in experiments, opportunity identification, problem-solving, and venture development in real-world simulated conditions.
Successful ecosystems combine formal education with mentorship, incubation, industry interaction, and networking opportunities. Research by Morris et al. (2013) confirms that experiential learning improves competencies such as innovativeness, resilience, and adaptability, concluding that mere instruction is insufficient, and the learner's environment plays a decisive role.
The South African entrepreneurial landscape has its own characteristics: entrepreneurs often face limited access to funding, regulatory barriers, infrastructure issues, and intense competition. This necessitates that education goes beyond drafting business plans. Institutions must create conditions for active student participation in innovation and problem-solving.
Some higher education institutions are beginning to recognize the value of the ecosystem approach, linking academic learning with enterprise development. For example, Regent Business School employs an integrated approach, combining innovation spaces, incubation, and industry engagement. Their iLeadLAB provides students with access to practical problem-solving, design, and prototyping, allowing them to experiment and learn from mistakes, similar to practicing entrepreneurs.
This approach is complemented by structured support: mentorship, incubation, and practical guidance. Industry interaction enhances commercial awareness and adaptability, which are demanded by the labour market. The value of this model lies in the synergy of these elements.
A serious issue is the lack of a unified system for evaluating the outcomes of educational programs. Success is often measured by participation statistics rather than actual impact on entrepreneurship. A more meaningful system should consider indicators such as the rate of new business creation, business survival after two and five years, the number of jobs created by graduates' enterprises, revenue growth, and access to investment.
Such indicators will allow policymakers and sponsors to clearly see which measures genuinely contribute to economic growth. The future of education should be measured not by the number of program completers, but by the number of those who successfully launch, sustain, and develop businesses. The implementation of evaluation systems demonstrating real impact is necessary.
As part of the concluded 2026 entrepreneurship contest, Coa Academy demonstrated how a new generation of South Africans is developing confidence and resilience through practical experience. The project-based learning program allowed students aged 10 to 14 to go from an initial concept to creating a full project presentation, bypassing traditional theoretical study.
Lauren Anderson, co-founder and CEO of Coa Academy, noted that the goal was to develop skills that employers will value by 2030, such as original thinking and tolerance for uncertainty. Anderson emphasized that what distinguishes the winners is not only the quality of their business ideas but also the ability to bring the idea to full realization, relying on their own judgment at every stage.
The contest revealed creativity in various fields, as student projects solved real problems. In the senior category, brothers Caleb and Simeon de Greef (aged 10 and 12) won with the InventZA project, which focuses on engineering boxes proudly representing South Africa. Simeon mentioned that the contest taught him teamwork, while Caleb expressed delight at the opportunity to start his own business.
In the senior category, fourteen-year-old Aiden Getkate was also a finalist with the Aiden's Epic Work project, which focused on environmental sustainability through the restoration of e-waste devices.
In the junior category, eleven-year-old Ryan Wagner won with the Ryan's Bug Class Co-op project, where he sold educational merchandise about insects and conducted online lessons. Wagner reported that the purchase of his cards and gift sets gave him confidence that other children could also love what is considered unnoticed.
Second place in the junior category went to twelve-year-old Amani Ali, who developed Busy Bee Pads—special sensory cushions for children with ADHD. For Amani, the main takeaway was receiving her first sale, which showed her that age should not hinder the realization of an idea.
This initiative is relevant given that the youth unemployment rate among those aged 15 to 24 in the country exceeds 45% (according to Stats SA). By focusing on practical learning, Coa Academy aims to provide students with the adaptability and self-assurance needed to succeed in the changing workplace.
Judge Abena Opeibea Ani-Budu, a venture capital partner at MEST Africa, particularly highlighted the students' willingness to embrace discomfort as a defining trait. She stated that it is impressive how these students accepted this discomfort instead of waiting for it to disappear, as this is what true entrepreneurial skill is.
As the winners receive cash prizes and mentorship sessions supported by industry leaders from Flintr, The Creative Lab, and Sanrae, the program serves as proof of the potential of South African youth when provided with the right environment to grow.
As part of its 'All In This Youth Month' platform, the bank Absa announced the creation of the Absa Youth Entrepreneurship Fund (AYEF). This initiative aims to help young residents of South Africa turn their ideas into viable businesses that will become sustainable sources of employment and economic growth.
The launch of the fund coincides with the celebration of Youth Month, which is dedicated to reflecting on the legacy of the 1976 Soweto Uprising and addressing contemporary challenges facing youth. Absa emphasizes that despite the high level of ambition among South African youth, access to opportunities remains insufficient because structural barriers prevent the transition from an idea to a viable business.
The fund is a direct response to the challenges faced by young entrepreneurs, such as limited access to funding, networks, mentorship, and markets. It will provide grant funding, structured business support, and access to Absa's business network. A distinctive feature of the fund is the provision of conditional grant funding without the requirement to repay the funds or give up equity in the business, thereby alleviating the financial burden on aspiring entrepreneurs.
AYEF is designed to support entrepreneurs at all stages of their development—from early concepts to growing enterprises. Program participants will receive phased grant funding tied to achieving business goals, individual mentorship, and strategic support, as well as guidance on financial and corporate governance. The program will operate nationally for 12 months. The fund is implemented in partnership with the Tshiamo Foundation and is based on a voluntary 'give-back' model, where supported entrepreneurs assist future participants.
Sidney Mbele, Group Marketing and Corporate Affairs Director at Absa, noted that the main obstacle for South African youth today is not ambition, but access. She stated that through AYEF, the bank is 'sowing the seeds of change' by providing the necessary capital and support to create jobs and stimulate inclusive economic growth. Furthermore, during a flagship event held at Absa Towers West, youth, entrepreneurship partners, business leaders, and politicians gathered to connect ambition with opportunity. Applications for the Fund will open in August 2026.
