Entrepreneurship Education: Remedy to Graduates’ Unemployment in sub-Saharan Countries

Abstract

Entrepreneurship Education is one of the most current methods for increasing the quality and number of entrepreneurs, resulting in employment creation and economic empowerment of graduates worldwide. This chapter describes the importance of Entrepreneurship Education in remedying the high unemployment rate in sub-Saharan countries. As one of the sub-Saharan countries, Lesotho has the oldest university. This university is used as a case study because it has recently introduced Entrepreneurship Education for all the university faculties to reduce the high unemployment rate faced by graduates in Lesotho. The literature review results depict that there is more pressure on universities to implement Entrepreneurship Education practices in their curriculum to combat the high unemployment rate among graduates. Entrepreneurship Education plays a vital role in unemployment reduction and supports wealth creation. Therefore, it becomes mandatory for all universities to ensure full implementation of the program and skill acquisition in training students in theory and practice. It is recommended that governments in the sub-Saharan countries should revisit and strengthen policies aiming to promote Entrepreprenurship Education and small and medium enterprises in their individual countries.

1. Introduction

Globally, entrepreneurship has been widely researched and accepted as an important mechanism for employment establishment for graduates. Various studies have shown that entrepreneurship is one of the most current methods for increasing the quality and number of entrepreneurs, resulting in employment creation and economic empowerment of graduates. Universities have been entrusted to produce the human resources required by both the private and public sectors worldwide. Contrary to the common saying that education opens the door for graduate employment, 59 million youth graduates between the ages of 15 and 24 are currently unemployed globally (The International Labour Organization (ILO) [1]. This scenario is more prominent among the graduates in most African countries. Africa has approximately 1.3 billion of the world’s population, and 764 million people are youths [1]. Furthermore, as evidence for youth graduates’ unemployment, North Africa has the highest number of unemployed youth, with an estimated 30% of youths expected to remain unemployed in 2020 [1].

Ternenge et al. [2] assert that although education has been canvassed as one of the visible ways out to job creation, it is becoming invalid with the increasing number of unemployed graduates. For instance, in Lesotho, one of the sub-Saharan countries, graduates are forced to hide their degrees in order to secure employment [3]. This is because there are no jobs that equate to their certificates. As a result, they remain unemployed for a long period. This clearly indicates that university graduates are not safe from the problem of unemployment as the period between graduation and employment dates is increasingly becoming longer and longer on a yearly basis [4]. Ridha et al. [5] argue that university graduates enter the labor market in numbers on a yearly basis. However, due to lack of employment prospects, the positive input of universities translates into an increase in unemployment, and yet education has always campaigned as one of the most visible ways of securing employment. As a result, this assertion is becoming invalid with the increasing number of unemployed university graduates.

As a land-locked country with a relatively small economy, Lesotho’s economic stability is extremely influenced by movements in the South African economy, particularly the share allocated to it as part of the common pool of the Southern African Customs Union (SACU) [6]. The Lesotho’s economy is currently very weak due to the results of the COVID-19 pandemic. Persistent political instability has also contributed to weak Lesotho economic performance, with gross domestic product (GDP) and gross national income (GNI) estimated at 2.496 billion USD and 6.553 billion PPP dollars, respectively [7]. However, Small Medium and Micro Enterprises (SMMEs) dominate Lesotho’s private sector and account for 97 percent of all firms in the country [7]. The dominance of the SMMEs in Lesotho private sector may be indicative of their large contribution to economic growth and the reduction of poverty in Lesotho. This view is supported by [8], who argues that in Africa, the role of SMMEs is not just one of economic growth; it spreads beyond that; to socioeconomic transformation and poverty eradication.

The Lesotho’s latest statistics (34.41%) show that the status quo of graduate unemployment persists, resulting in Lesotho Government forgoing tax revenue and incurring high social costs [1]. This statistics clearly indicate that entrepreneurship is a necessity in combating unemployment amongst the youth in Lesotho. While Lesotho citizens still have confidence in university education, the resulting effect of university education is often an acquisition of a university certificate than the employment benefits they aspired for. This suggests that the form of entrepreneurship offered by the universities in Lesotho may be considered barren to the nation [9, 10]. Recently, the literature has shown that there is more pressure on university education to incorporate innovation and entrepreneurship programs to expose students to entrepreneurial skills [11, 12]. In order to encourage students into the current economic landscape, universities are forced to introduce entrepreneurial programs aiming to assist students in acquiring entrepreneurial skills.

Given the context, this chapter draws on the publicly owned large National University of Lesotho (NUL), which has currently made an effort to promote and nurture entrepreneurship by introducing it to all university students regardless of the programs the students are pursuing. This strategy was adopted to encourage students to create their own business ventures upon completion of their degree, thus, combating the high rate of graduates’ unemployment in Lesotho. The NUL recent strategic plan 2015–2020, as captured in strategic Goal 2 (a university of choice providing high-quality educational experience and relevant scholarship) of NUL Strategic Plan 2015–2020, objective 2.2 (to inculcate entrepreneurial skills in students) emphasizes the integration of entrepreneurial skills in the curriculum. In implementing this strategic Goal 2.2, The NUL Department of Business Administration (DBA) has been mandated to introduce a Entrepreneurship Education (EE) for all students in line with the revised semesters programs in the academic year 2022/2023. In preparation for introducing EE, DBA has recently hired a number of entrepreneurship specialists to offer the course to the entire university. This is done with the hope that EE will positively contribute to graduate’s unemployment in Lesotho. Again, worldwide, there is more pressure on higher education to incorporate EE practices. As a result, in order to encourage students into the current economic landscape, a number of universities are developing and introducing EE initiatives in their programs, and NUL is not immune to this creativity.

Considering the role of EE in contemporary careers, this chapter begins with methodology used to collect secondary data, brief presentation and systematization of the perspectives of the history and evolution of the concept of EE, the importance of EE - learning from the literature and requirements for EE effective implementation are outlined. Finally, the main possible recommendations for future effective implementation and development of EE in sub-Saharan countries are highlighted.

2. The methodology

The chapter uses a literature review focusing on past and current perspectives of EE as a remedy to graduate’s unemployment. The literature review provides the interpretation of the current literature on EE in light of the updated developments in EE as a remedy to graduate unemployment. The literature includes the assessment of the theoretical development and evolution of EE, the importance of EE in combating unemployment in different countries, requirements for effective implementation of EE, and how to connecting EE and unemployment.

3. The theoretical development and evolution of EE

The term “entrepreneurship” originated from the French word “entreprede” which means to undertake “Venture and encroach” [13, 14]. It was first used by Richard Cartillion in the seventeenth century to describe ownership of business ventures. Reports that one of the first courses in entrepreneurship was structured at Harvard University in the United States in 1947 by Myles Mace [9, 10]. On the other hand, [11, 12] posited that some elements of EE can be dated as far back as 1938 at Kobe University in Japan. During those days, EE was considered as an academic subject from the late 1970s and early 1980s, the period associated with a general rise in interest in entrepreneurship and small business. These were the years when the oil crisis (1973) and the energy crisis (1979) led to the stagnation of economic growth and inflation, where world leaders were seeking some alternatives to save local economies and fight the growing crisis [13, 14].

It is also well-known that EE growth was due to the fact that EE had been recognized by many governments and institutions as a major source of job creation, as argued by [15]. This resulted in universities, institutions, nongovernmental bodies (NGOs), and prominent bodies, such as ILO, United Nations Development Programme [UNDP], creating EE programs worldwide [16]. Therefore, NUL is not immune in this endeavor of introducing EE as a mechanism toward creation of employment among the graduates in Lesotho.

4. EE concept

EE has been widely researched and acknowledged as a critical mechanism for employment creation in both developing and developed countries [1]. On the other hand, various studies have shown that EE is one of the most current method for increasing the quality and number of entrepreneurs who creates employment and supports innovation and the economic empowerment of individuals [17]. Muriithi [18] contend that EE prepares an individual and creates in the person the mindset to undertake the risk of venturing into something new by applying the knowledge and skills acquired in schools. As such, EE creates the willingness and ability in a person to seek out investment opportunities in society and be able to establish and run a business successfully based on identifiable opportunities [19]. On the other hand, [20] regards EE as academic program that enables students to acquire the attitudes and skills necessary for developing and running business. In agreement with [20, 21] also contends that EE consists of ideas, information, and facts that help students develop competencies needed for establishing business, marketing services, or being productive employees of organization. However, other authors [22] confirm that there is a general consensus on the fact that entrepreneurship is a phenomenon that is capable at the national and regional level of being influenced by policymakers, in which the attention and knowledge conferred by those responsible are positively associated with the allocation of efforts devoted to the increase of entrepreneurship. Matlay [23] summarizes EE as representing an efficient and cost-effective way of increasing the number and quality of enterprising graduates entering the economy [23]. From the above arguments, it may be concluded that EE is a multifaceted and complicated concept that educates youth graduates on entrepreneurial attitudes and skills, which involves developing certain personal qualities [24].

In the context of this chapter, EE refers to any type of education that seeks to develop the relevant knowledge, skills, and attitudes of graduates toward entrepreneurial activities, including but not limited to starting a business, creating innovative products and services, and providing solutions to the community, societal, and global problems. This definition makes it clear that the objective of an EE is not solely centered on creating a new business but on developing certain personal qualities that can be used to solve societal, personal, or organizational problems. Therefore, this calls for lecturers to change the traditional teaching methods and use lots of teaching techniques, such as case analysis, role-play, group discussions, and interactive games to make students participate in and obtain the idea and essence of EE. These new teaching techniques may assist lecturers in achieving the objectives of providing and teaching EE satisfactorily. In addition, EE aims to change the recipients’ orientation and attitude and equip them with the skills and knowledge to enable them to start and manage a business [25]. The specific objectives of EE, as spelled out by [26, 27], are as follows:

• To reduce the high rate of unemployment among the graduates

• To offer functional education for the students that will enable them to be self-employed and self-oriented

• To inculcate the spirit of perseverance in students, which will enable them to persist in any business venture, they will embark upon

• To provide the graduates with adequate training that will enable them to be creative and innovative in identifying novel business opportunities

• To serve as a catalyst for economic growth and development

• To offer tertiary institution graduates with adequate training in risk management to make certain bearings feasible

• To create employment generation

• To reduce rural–urban migration

• To provide the graduates with enough training and support that will enable them to establish a career in Micro, Small, and Medium Enterprises (SMMEs)-sized businesses

• To inculcate the spirit of perseverance in the youth and adults, which will enable them to persist in any business venture, they embark upon

• To create a smooth transition from traditional to modern industrial economy

• To use technological advancement and economic development

Considering the EE objectives, it is obvious that if EE is given all it deserves and properly executed very well, it will produce quality youth graduates that will foster job creation and reduce or eliminate poverty in Lesotho. This could be realized when the graduates are self-reliant by establishing their own business. Ultimately, EE will make youth graduates use their potential and energies to create wealth, independence, and status in society.

5. The importance of EE - learning from the literature

Research supports the general opinion that EE is a critical generator of jobs [28, 29]. This is because (SMMEs) create a higher share of total jobs than other employers. For instance, in the Middle East and North Africa (MENA) region, SMMEs represent 80 to 90 percent of all businesses in the formal sector [30] while in Lesotho SMMEs constitute 85% of the country’s private sector [30]. The Lesotho National Strategic Development Plan [31] 2018–2019 – 2022-2023) estimates that some 100, 000 SMMEs are operating in Lesotho with employment of over 300, 000 people, including those in the informal sector and subsistence agriculture. Entrepreneurs are responsible for a large part of employment both in developed and developing countries [1]. Reynolds et al. [32] argue that countries with higher rates of entrepreneurial activities have higher levels of employment. This is because new products or services are more likely to be created when more entrepreneurs exist. It must be noted that various research has emphasized the contribution of entrepreneurship in economic development because it creates lots of job opportunities, stimulates innovative thinking, and also acts as a ‘stabilizer’ for countries and societies [33]. In line with [33, 34] maintains that EE seeks to provide students with the knowledge, skills, and motivation to encourage entrepreneurial studies in a variety of settings. Okafor [35] is also of the same opinion that EE is very critical for university students because it provides students with the ability to recognize commercial opportunities and the knowledge, skills, and attitudes to act on them. On the other hand, [36] argues that EE is a very highly specialized course that assists students in acquiring skills, ideas, managerial abilities, and capabilities for self-employment than employment for wage pay. It also seeks to provide students with the knowledge, skills, and motivation to encourage entrepreneurial success in a variety of settings. According to [37] EE is supposed to be taught at the university level for the following reasons:

• It seeks to provide students with the knowledge, skills, and motivation to encourage entrepreneurial success in a variety of settings

• A number of people of young graduates did not grow up in the entrepreneurial culture

• The numbers of unemployed youth graduates are high worldwide

• The numbers of opportunities for employment are limited

• Job opportunities are not equal to the numbers of unemployment

• The growth of entrepreneurship can create opportunities for employment, reduce unemployment, and create social welfare in society widely

6. Requirements for EE implementation

For effective implementation of EE by the universities, the following aspects should be taken into consideration: Curriculum reform, Extracurricular and entrepreneurship design, Empowerment of EE lectures, Lecturer human resource empowerment, Link between EE and professional education and establishment of entrepreneurship centers.

6.1 Curriculum reform

Tlali et al. [38] observed that the curriculum in Lesotho does not sufficiently prepare graduates to start their own business. This is due to the fact that the education system in Lesotho aims educating students mainly to be employed, particularly in the civil service, rather than equipping them with skills that will lead graduates to create jobs for themselves and for others. Therefore, this calls for the curriculum reform in Lesotho to create graduates who will create jobs for themselves and others, thereby driving economic development in the country. In this chapter curriculum reform includes issues that would have an explicit impact on how the curriculum is designed and realized, such as, teaching methodology, class size, learning hours’ allocation, learning objectives, assessment and examination practices [39]. Conversely, it must be noted that curriculum reform is very expensive in terms of implementation because it requires changes in many areas that might challenge the existing beliefs and subjective realities deeply embedded in individual and organizational context. These are factors related to the high cost and risk aversion of stakeholders [40]. Curriculum reform requires huge investments in training and capacity building to teaching and learning and new material resources. This is the more reason that it needs to be planned and implemented successfully.

6.2 Extracurricular and entrepreneurship design

For effective implementation of EE, extracurricular and entrepreneurship design have to be part of EE. According to [41], entrepreneurship extracurriculars include actions, experiences, and newness, which may be organized inside or outside universities and fall outside the realm of higher education’s official curriculum. In fact, entrepreneurship extracurricular activities supplement the required coursework of formal university education. These activities include but not limited to the following; entrepreneurship games, business plan competitions, exchanges, business mentoring, clubs and societies, preincubators, workshop programs, entrepreneurship support programs, developing new product and innovation competition, idea development, and business incubators [42]. These activities are foundation for experiential learning and create a supportive environment within which students enhance entrepreneurial skills and knowledge about entrepreneurial activity. They also are also very critical because they provide and develop students’ capacities in leading a group or a project, developing a strategic plan, and changing risk-taking tendency [43].

6.3 Lectures human resource empowerment

The most critical factor that is required for effective implementation of entrepreneurship is the human resources. Sirelkhatim and Gangi [37] argues that the ability of lecturers to teach EE in most tertiary institutions have been fingered as a reason for the poor quality delivery. This is supported by [41] who stated that EE is not properly taught in higher learning institutions. This is as a result of lack of lecturers with practical entrepreneurial training and consciousness [43]. As a result, this constraint consequently frustrates the integration of entrepreneurship in academic programs in some universities. This misconception also equates EE to business studies and business administration, despite the difference in scope and focus of the two courses. This is supported by [44] who argues that lecturers who teach EE are mainly from economics and business administration programs in Nigeria. Lecturers must have relevant skills in EE so that they will impart knowledge required by the learners. As such, lectures should be empowered, as state by [41] arguing that empowerment in EE allows lectures to demonstrate high commitment to their work and the organization and the level of commitment can be seen from their confidence which will translate into students’ satisfaction and high performance in EE.

6.4 Link between EE and professional education

In some higher learning institutions, EE is marginalized and has not been integrated into the talent training system. This means that the combination and connection of EE and professional education in higher learning institutions is not close enough, and the curriculum of EE and students’ professional courses cannot be effectively connected. The implementation of EE program through curriculum reformation and integration is done by transforming the curriculum and initiating the entrepreneur subject [45], conducting the teaching-learning process and transferring the entrepreneurial values, designing the strategy of entrepreneurship teaching concept [39], the learning of venture plan writing as the final assignment, the learning of business start-up (coaching) conducted by the entrepreneur lecturer, the Teaching through computer simulation as a media to take the students into the business. Therefore, there is a need for effective implementation of the curriculum and the engagement of qualified lecturers. This is mainly due to the fact that lecturers play a critical role in the curriculum implementation process. As such, lecturers should be provided with some trainings in order for them to understand and master the curriculum document so that they will implement it successfully. Higher learning institutions do not have enough high level of human resources that can effectively teach the course, and yet as the custodians of knowledge in society, lecturers are supposed to nurture and instill entrepreneurship culture in student’s mind, and yet there is a dire need for entrepreneurial lecturers in Nigeria and Lesotho [46].

6.5 Establishment of entrepreneurship centers

Higher learning institutions should establish entrepreneurship centers that engage in training, Research and Development (R&D), consultancy, and information dissemination, and that provide follow-up services to students. The aim of these centers should be to develop an entrepreneurial mindset that encourages graduates to develop skills to see opportunities and make use of trainings that are provided for enterprising action that develops emerging economies and help to support them in introducing EE. The center should provide various courses that provide entrepreneurial and enterprise skills development. The center should inculcate a culture of entrepreneurship in the citizens through different means. Lastly, the centers should facilitate networking and exchange among universities and alumina to increase the spread and use of innovative pedagogies and teaching materials in EE.

6.6 Linking EE and unemployment

Many researchers argue that EE and graduates’ unemployment are related because graduates’ entrepreneurship is identified as being the natural solution for graduates’ unemployment [18]. One of the main objectives of EE is to allow students to have enough knowledge to identify opportunities and create new business and provide more job opportunities for the society [47] thus, reduce unemployment particularly, among the graduates. However, [48] argues that unemployment boosts entrepreneurship and entrepreneurship negatively relates to unemployment. Nwosu B and Ohia [18] asserts that youth entrepreneurship is identified as being the natural solution for youth development. Diraditsile and Maphula [49] also posited that entrepreneurship is a key pathway for addressing youth employment challenges. Youth engagement in entrepreneurship activities is very important to reduce the high number of unemployed youth and alleviate poverty [47]. This argument is also supported [49] who strongly believes that EE is a key pathway for solving graduate’s unemployment. Students’ engagement in EE activities is very important to reduce the high number of unemployed graduates and alleviate poverty [48]. This is in line with the results of [24]. EE equips students with adequate skills and training that are useful in identifying noble business opportunities [50]. It further shows support to the argument of [8] that entrepreneurial programs raise the right attitudes and behavior toward imbibing entrepreneurial spirit. Ojile and Tijani [51] also posited that the contribution of EE in reducing unemployment is seen in many countries, like Nigeria, where it has contributed to the standard of living through innovation that led to the introduction of high goods and services and conservation of foreign exchange as a result from reduced importation of machines and equipment, raw material and payment to foreign export. Generally, EE is very important and should be offered by higher learning institutions as research has shown that EE has the ability to reduce unemployment among graduate.

7. Conclusion

In conclusion, therefore, EE has the potentially to empower young graduates in order for them to be self-employed after graduation. EE has relevance today not only because it assists entrepreneurs in better fulfilling their personal needs but because of its contribution to the reduction of graduate’s unemployment in many countries, Lesotho included. As a result, EE ought to be part of the university’s core strategy. The inclusion of EE in all university’s disciplines will greatly assist in solving this problem of high unemployment and underemployment among the graduates. Research has shown that EE is vital in reducing unemployment and supports wealth creation. Therefore, it becomes mandatory for all higher institutions to ensure full implementation of the program and skill acquisition in training students not just in theory but in practice. Entrepreneurship lectures should endeavor to be more passionate and position entrepreneurs at heart so as to be able to inculcate the same in students. Lastly, the university management, the government, and the private sector should provide special recognition and assistance in terms of technical-know-how and sponsorship to deserving entreprenurship students. If this is done, the challenge of unemployment of graduates in sub-Saharan countries will be reduced and, as such, will lead to the creation of wealth. However, it must be noted that effective implementation of EE should be well planned and managed to achieve the goal of reducing unemployment.

It is recommended that universities should strive to introduce EE through the following creativities: curriculum reform to incorporate EE in all university programs. Students should be exposed to on-the job training, the universities should do this, working together with the private sector. An establishment of an incubation center at the universities to assist with the commercialization of business ideas and products should be a priority. There must be the introduction of forums between the university, industry, and the government which will advise cross-pollination of knowledge and efforts, and uniformity among universities should be established for the recognition of prior learning. Lastly, universities should not only focus on creating a third-stream income from commercialization but also equips students to start and grow sustainable small businesses. The government should return to the drawing board to strengthen policies promoting entrepreneurship and SMEs in sub-Saharan countries. Policies should address individual countries’ problems of effectively implementing EE that addresses the high graduate unemployment in sub-Saharan countries.