The architect and the scaffold: A collaborative pathway to SA’s National Entrepreneurship Strategy

1. Executive summary: From blueprint to shared success

The draft National Entrepreneurship Strategy represents a critical and timely policy intervention aimed at leveraging entrepreneurship to address South Africa's persistent challenges of youth unemployment and economic stagnation. The strategy correctly identifies skills development as a foundational pillar for fostering a vibrant entrepreneurial culture and enhancing the sustainability of micro, small, and medium enterprises (MSMEs).

The central thesis of this analysis is that while the NES provides a conceptually sound and welcome blueprint, its successful implementation requires a collaborative, ecosystem-wide approach to overcome deep-seated, systemic challenges. This paper explores those challenges and proposes a framework for public-private partnership to ensure the strategy's success.

The analysis finds that the skills gap in South Africa stems from a significant methodological gap between policy and implementation. The formal education and training system, as currently constituted, exhibits a disconnect between its outputs and the practical, real-world demands of a dynamic economy. This is compounded by challenges in institutional coordination, data intelligence, and a pedagogical approach that often prioritises theory over application.

Furthermore, the report finds that skills, while necessary, are not a sufficient condition for entrepreneurial success. A skilled entrepreneur's potential can be constrained by a challenging operating environment characterised by infrastructural limitations, constrained access to finance, and a complex regulatory framework. These challenges are best addressed through a spirit of genuine collaboration between the state and key private sector stakeholders, a partnership the NES rightly seeks to foster.

In conclusion, the path forward lies in evolving from a mandate for skills development to a pragmatic, action-oriented strategy that prioritises genuine public-private partnership, a significant enhancement of entrepreneurial education pedagogy, and a simultaneous, high-impact focus on all five pillars of the NES. The strategy's ultimate success will be determined not by the elegance of its design, but by the robustness of its collaborative implementation in the face of long-standing systemic friction.

2. Introduction: Contextualising the national imperative

South Africa is grappling with one of the world's most significant youth unemployment challenges. The unemployment rate for young people aged 15–34 was estimated at 60.8% in 2024, up from 38.2% in 2018. This demographic group constitutes nearly one-third of the nation's population, making their economic inclusion a central pillar for social and economic stability. This situation is further compounded by a pronounced skills gap; over 60% of South African companies identify skills shortages as a key barrier to business transformation by 2030, a phenomenon described as a "misalignment between the skills South African employers demand, and the skills our young people possess".

The small business sector, widely regarded as a potential engine for job creation, is characterised by low survival rates and stagnant growth, creating far too few economic and employment opportunities to absorb the millions of unemployed citizens.

In response to this national imperative, Cabinet approved the publication of the draft National Entrepreneurship Strategy (NES) and its Implementation Plan in mid-September 2025. The strategy is positioned as a visionary blueprint to enhance the involvement of young people and historically disadvantaged businesses in the economy by promoting entrepreneurship and ensuring the sustainability of micro, small, and medium enterprises (MSMEs).

This policy is not a new beginning, but rather the third iteration of a national small enterprise development strategy, building on the foundation of the 1995 White Paper and the subsequent Integrated Strategy for Entrepreneurship and Small Enterprises (ISPESE). The NES is designed to be a strategic roadmap that integrates the work of other key departments and partners, aiming to coordinate the entire ecosystem for entrepreneurship development in the country.

This report offers a constructive examination of the NES, with a particular focus on its skills dimension. The purpose is to move beyond a descriptive summary and provide a rigorous, evidence-based analysis of how the proposed framework can be collectively strengthened to genuinely transform the national skills landscape and, by extension, the economic prospects of South Africa's youth.

3. The Policy Framework: A Blueprint for Skills and Ecosystem Reform

The NES is a multifaceted policy framework structured around five key pillars, with "Enhancing entrepreneurship education and skills development" occupying the first position. The strategy explicitly recommends that entrepreneurship be incorporated into the curricula of the departments of Basic and Higher Education as a "viable career choice".

This proposal is not a radical departure from existing policy but rather an amplification of a pre-existing mandate. The Department of Basic Education has already been pursuing a Sector Plan for Entrepreneurship Education in Schools: 2030, and its E3 (Entrepreneurship, Employability and Education) initiative, launched in 2018, has been piloting project-based learning methodologies in schools to cultivate an entrepreneurial mindset among learners. The E3 initiative's ambitious objective is to have 100% of learners develop the necessary skills, knowledge, and solution-oriented mindsets to complete school, study further, gain employment, or start their own enterprises by 2030.

The NES is conceived not as a standalone policy but as a coordinating instrument designed to harmonise government efforts with private sector stakeholders. It is intended to align with and add value to other major national plans, including the National Integrated Small Enterprise Development (NISED) Masterplan, the National Development Plan (NDP), and the Economic Reconstruction and Recovery Plan (ERRP). The Department of Small Business Development's Annual Performance Plan for 2024-25 explicitly lists the implementation of the recently developed National Entrepreneurship Strategy as a key objective, with a commitment to support 10,000 youth-owned enterprises within that financial year.

A critical feature of the NES is its recognition of the complex, systemic nature of entrepreneurship development. While the skills pillar is central, it is presented alongside four other equally vital areas: facilitating technology exchange and innovation; improving access to finance and markets; optimising the business regulatory environment; and promoting awareness and networking. This holistic approach acknowledges that a skilled entrepreneur is only one component of a successful ecosystem, and that an entrepreneur's ability to thrive is dependent on a supportive and collaborative environment.

4. A system under strain: The gap between policy and reality

While the NES presents a compelling vision, an analysis of the existing landscape reveals a significant gap between policy intent and practical outcomes. South Africa's education system, despite a curriculum that aims to equip learners with the knowledge and skills for self-fulfilment and meaningful societal participation, has not yet consistently produced a workforce with the competencies required by the economy. The National Curriculum Statement Grades R-12 already espouses principles such as "high knowledge and high skills" and "active and critical learning". Yet, research indicates that the current approach to entrepreneurship education (EE) is not yet yielding the desired effect of producing "business-minded youth".

The core of this challenge lies not in the absence of an entrepreneurship curriculum, but in the methodology of its delivery. Entrepreneurship is currently fragmented and incorporated into existing subjects such as Life Skills and Economic Management Sciences, rather than being a standalone subject with dedicated pedagogical focus. This diluted approach appears to be a significant factor behind the prevailing skills gap. The data reveals a clear and critical leverage point for intervention: 96% of teachers cite a lack of training as a major impediment to the effective implementation of entrepreneurship education.

This presents a significant opportunity for targeted public-private partnerships to provide the necessary training and support to our educators, directly empowering them to deliver on the NES's goals. Even with a policy mandate from the highest levels of government, the frontline implementers require enhanced capacity, knowledge, and support to translate that mandate into tangible results. The need for greater commitment from business people to support schools with entrepreneurship skills further highlights an opportunity to build a more cohesive and supportive ecosystem that extends beyond the state.

The skills planning system itself is hampered by challenges in data accuracy and coordination that contribute to the chronic skills mismatch. While the Skills Development Act (SDA) provides an institutional framework to develop and improve the skills of the South African workforce, the system's effectiveness is impacted by these data challenges. Academic analysis points to the complexities of the Sector Education and Training Authorities (SETAs), noting that the process is "too complex" and affected by "poor data coming from employers".

This can lead to a situation where skills development funding is not optimally directed. The absence of a standardised, empirical approach to labour market research means the system is essentially operating with limited visibility, unable to always accurately identify and respond to real industry demand. The NES's aim to "coordinate the ecosystem" can therefore be powerfully advanced through a collaborative reform of the fundamental data collection and analysis mechanisms that underpin the entire skills development landscape. Without this, any new strategy, regardless of how well-intentioned, will be built on a foundation of incomplete intelligence.

5. Beyond the formal curriculum: The ecosystem of shared challenges

The National Entrepreneurship Strategy correctly acknowledges that skills development is only one of five critical pillars for fostering a vibrant entrepreneurial ecosystem. This recognition is vital, as a skilled entrepreneur, no matter how capable, operates within a challenging operating environment requiring collective action. The success of the skills pillar is therefore inextricably linked to our collective progress on the other four pillars.

A skilled entrepreneur's journey can be impacted by persistent financial, infrastructural, and regulatory hurdles. Access to finance remains a significant barrier, with only one in five SMEs reportedly able to secure the funding they need to grow their businesses. Traditional lending practices, which often rely on collateral and rigid credit scoring systems, can financially exclude the "missing middle" of small and early-stage enterprises. Furthermore, a significant portion of entrepreneurial energy and resources is diverted to navigating the operating environment.

The South African economy faces external factors such as energy disruptions (loadshedding), water shortages, and supply chain bottlenecks. The case studies of entrepreneurs who have pivoted their businesses to supply backup power solutions in response to loadshedding illustrate a diversion of entrepreneurial effort from innovation and growth to a primary focus on business continuity and resilience. The NES's promise to foster an "enabling environment" presents an opportunity for public and private sectors to collaborate on addressing these foundational challenges with shared urgency.

On a deeper level, the regulatory environment itself is perceived by some in the private sector as an obstacle to growth. The Centre for Development and Enterprise (CDE) has argued that some government interventions, rather than fostering a dynamic small business sector, have made it more difficult for enterprises to survive and expand. This sentiment is underscored by Business Unity South Africa (BUSA), which initiated legal action against the state over what it deemed "unworkable" Employment Equity Sector Targets.

The business community's expressed frustration with a perceived lack of "meaningful consultation" points to a trust deficit that can be bridged through the collaborative partnerships the NES requires to succeed. The strategy's pillars are not independent components; they are a system of interdependencies. A collective failure to make progress on one pillar, such as regulatory reform or access to finance, will limit the potential of the others, including skills development.

6. Bridging the gap: Lessons from effective interventions

Despite the systemic challenges, evidence from the private and non-profit sectors provides a clear roadmap for effective skills training and development. These successful interventions demonstrate that a practical, hands-on, and outcome-oriented approach can yield tangible and measurable results. The PwC Faranani Rural Women Training Initiative, for instance, focuses on providing highly practical business management skills, including the ability to draft a business plan, understand financial concepts like costing and break-even analysis, and implement effective marketing strategies.

The outcomes of this initiative are compelling: 68% of its graduates have reported an increase in business profitability, with one participant successfully increasing her revenue by 20% on a consistent monthly basis.

The UNIDO Entrepreneurship Curriculum Programme (ECP) similarly demonstrates the power of practicality. Its curriculum is "action-oriented," with more than 50% of the program's time dedicated to practical research, such as identifying business opportunities and learning from successful entrepreneurs directly. This approach stands in stark contrast to the fragmented, theory-heavy curriculum currently in place in much of South Africa's basic education system. A study on the teaching methods for entrepreneurship in South African universities reinforces this perspective, highlighting that the most effective pedagogy includes "business plan development" and practical, experience-based learning.

7. The path forward: A call for ecosystem collaboration

Overcoming the systemic challenges facing South Africa's entrepreneurial landscape is not the sole responsibility of the government but requires a concerted, collaborative effort from all stakeholders. The National Entrepreneurship Strategy provides the ideal framework for such a partnership. The private sector, with its deep industry knowledge and practical expertise, is uniquely positioned to support the NES and help bridge the gap between policy and real-world outcomes. This can be achieved through concrete Public-Private Partnership (PPP) models focused on high-impact areas.

One of the most critical areas for collaboration is in curriculum co-creation. Organisations with proven track records in practical entrepreneurship training can partner with the Department of Basic Education to co-design and pilot hands-on, action-oriented entrepreneurship modules. These modules, grounded in real-world business principles, can be integrated into the national curriculum to provide learners with the practical skills they need to succeed.

Another high-impact opportunity lies in teacher training. The private sector can play a pivotal role in addressing the training gap identified among educators by funding and facilitating specialised teacher training programs. Led by experienced entrepreneurs and business educators, these programs can equip teachers with the confidence and competence to deliver the new, practical entrepreneurship curriculum effectively.

Finally, a national mentorship network can be established, powered by private sector volunteers. By connecting experienced business leaders with aspiring young entrepreneurs, we can provide the guidance, support, and network access that is so crucial for early-stage business survival and growth.

At Shaper, we are committed to being an active partner in this national endeavour. We stand ready to share our expertise in curriculum design, teacher training, and mentorship to help realise the ambitious and vital goals of the NES. We believe that through genuine collaboration, we can collectively build a vibrant and inclusive entrepreneurial ecosystem for all South Africans.

8. Conclusion: From blueprint to shared success

The National Entrepreneurship Strategy is a vital and well-conceived blueprint for unlocking South Africa's economic potential. Its success, however, is not pre-ordained. It requires a fundamental shift from a top-down, policy-driven approach to a collaborative, ecosystem-wide movement. The challenges of skills mismatches, pedagogical gaps, and a difficult operating environment are not insurmountable, but they are too complex for any single entity to solve alone.

The path forward lies in a pragmatic, action-oriented strategy that prioritises genuine public-private partnership. By co-creating curricula, investing in teacher training, and building robust mentorship networks, we can transform the educational landscape. By working together to streamline regulations, improve access to finance, and stabilise our infrastructure, we can create an environment where entrepreneurs can thrive.

The NES provides the architect's plan. It is now up to all of us – government, the private sector, civil society, and individual entrepreneurs – to collectively build the scaffold that will turn this vision into a lasting reality. Shaper is ready to play its part in this crucial national project, and we invite our partners across the ecosystem to join us in building a more prosperous and entrepreneurial future for South Africa.