In 2019, the unemployment rate in the Mpumalanga province, according to the expanded definition, was 43.8%. In other words, a total of 628 822 individuals were not working. While these figures may have reflected the national average at the time, it was the youth (15–34 years) unemployment figure of nearly 45% that was most concerning for the University of Mpumalanga (UMP).

‘We had to acknowledge that traditional education alone was insufficient to address socio-economic challenges, such as Mpumalanga being an historically underdeveloped region, exacerbated by its rural profile,’ says Kanayo Ogujiuba, associate professor, School of Development Studies and centre manager: UMP Centre for Entrepreneurship Rapid Incubator (UMPCFERI).

As a centre of educational excellence, the UMP considered expanding its role to address the challenge, and in so doing would enhance its position in the region by fostering economic development and equipping students, alumni and local SMMEs with entrepreneurial skills. This birthed, in 2020, the UMPCFERI, which officially launched in early 2023, with the primary goals to:

• Reduce unemployment, especially among young people and women in Mpumalanga
• Develop a vibrant entrepreneurship ecosystem to support the commercialisation of small businesses
• Prepare graduates to become not only jobseekers but also job creators
• Unlock the socio-economic potential within the province through entrepreneurship.

The UMPCFERI responds to a concept of inclusion, and a need for independence and development. It focuses on developing students’ business ideas into sustainable business ventures, and supports start-ups. Its offering includes pre-incubation of six months, training, advice, coaching and mentorship, and financial and technology support. Economic development is stimulated as a result, as it impacts on the broader local community and aids them in being self-sufficient.

‘This is why the target of participation included reaching beyond the existing UMP students and alumni,’ says Ogujiuba. ‘The first consideration was to the students who would qualify with a degree yet had limited opportunities for employment in the region, meaning they would likely need to relocate. An equally important market is the SMMEs, who without the proper guidance and skills had been struggling to develop sustainable entrepreneurial ventures. Thirdly, the UMP wanted to see more aspiring entrepreneurs enabled to enter the market.’

The success is beyond expectations. ‘More than 1 000 students have been through the centre to date,’ says Ogujiuba. ‘They have attended our regular entrepreneurship workshops, student women’s entrepreneurship programmes, and entrepreneurship bootcamps, while enjoying formal mentorship through business incubation. An additional 600 students per annum come to the centre specifically for graduate entrepreneurship and employment workshops.’

Proof of success comes from various sources, but one of the most significant results is via the UMP’s impact indicator reports, which it submits to the Small Enterprise Development and Finance Agency (SEDFA), which has recognised more than 50 student entrepreneurs. The evidence derives from their submitting quarterly income statements that demonstrate sustained employment for themselves as well as their employees.

‘The UMPCFERI encourages our participants to develop ways in which they themselves can be job creators, rather than jobseekers. We currently have three student entrepreneurs who collectively employ 21 individuals, all of whom are working from the private office space we provide at the UMPCFERI,’ says Ogujiuba.

Those three, plus one alumni student entrepreneur, are included as business incubation mentors, but even better is that they are registered vendors with the university. The growth of the UMP has necessitated regular contracting services that assist with improving existing facilities and building new ones to accommodate the anticipated increase in student attendance and the UMP’s research activities. With the UMPCFERI, the UMP, therefore, has access to local SMMEs who are also on the path to acquiring their B-BBEE Levels 1, 2 and 3 goals.

The pull-card for attendees is that it is free for participants, explains Ogujiuba. ‘The only time they pay for any service is when they file their annal returns and are paying the South African Revenue Service or the Companies and Intellectual Property Commission.

‘The basic criteria for prospective participants is to submit a company registration certificate – we also help them to register their companies; be willing to learn and implement the business advice provided; and co-operate on the reporting templates we use for impact reporting.’

Once incubated, the participants are exposed to continuous in-house mentoring and monitoring, and business-development services. They may also be referred to UMP stakeholders and partners for further mentorship and additional development services.

Those stakeholders include SEDFA, which funds the business incubation mentorship; the Entrepreneurship Development at Higher Education, which provides funding and programme implementation; the TUT Centre for Entrepreneurship Development, providing collaborative engagement; the National Youth Development Agency; and private corporates such as Standard Bank, Old Mutual and Mega Education, all of which facilitate workshops and provide various assistance models.

‘They also facilitate subject matter workshops,’ says Ogujiuba. ‘And, currently, the centre manager and his team are enrolled for Student Training for Entrepreneurial Promotion. Alongside are our UMP in-house facilitators and faculty members, who are considered experts on the subject matter they teach. We also involve external resource persons to provide a balance and industry focus.’

Several surveys, reports and analysis do prove success. However, as Ogujiuba points out, the real value is the entrepreneurial attributes instilled in the student entrepreneurs. This translates to economic, social and ethical growth of the entrepreneurs themselves and their business ventures.

‘Their participation in the broader entrepreneurship development programmes and qualifying for normal business finance show that they are recognised in the business ecosystem as compliant and sustainable businesses that are investor worthy,’ according to Ogujiuba.

‘As an engaged university, our institution places great value on our partnerships, collaborations, linkages and networks, and we have identified many such as both drivers and enablers. This engagement agenda must be aligned and strongly focused on the impact for the local communities.

‘From my perspective, witnessing the breaking of barriers and allowing individuals to pursue opportunities that allow them to participate meaningfully in the economy is beyond measure.’

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