In South Africa, a degree no longer guarantees a job. Youth unemployment hovers at crisis levels, and many graduates struggle to find stable work. 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.”

Manmohan argues that universities must take a more active role in reshaping this dynamic. “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 NYDA.

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 fallback option to first choice. That requires systemic support: 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.”