INFORMATION AWARENESS AND ENTREPRENEURIAL BEHAVIOUR
4.2 Other factors of influence
A critical look at the figures of unemployment reduction in the province as reported by the premier in the State of Province Address (SOPA) 2016 which stated a decline of unemployment percentage from 27.4% to 25.7%, looking at this; it shows a reduction of 1.7%. Comparing these figures in relation to the number of unemployed youths in the province which stood at 69.9% (Stats SA, 2015) of the total unemployed persons in the province in 2015 will give a clear picture that poverty (facilitated by lack of information of entrepreneurial opportunities) is a significant factor influencing entrepreneurial behaviour in the province. A comparative analysis of this challenge is further explained by comparing the deterioration in youths unemployment in the province from 2008 to 2015 which stood at 38.8% this is a 5.9% reduction in the years under review. To show the gravity of this challenge the rate of unemployment of black youths in the province rose from 34% in 2008 to 40.9% in 2015, most affected in this sub -group is female which is 1.4% higher than male (Stats SA, 2015). In a province with more than 80%
black populace the effect or unemployment in relation to poverty cannot be over - emphasised.
Figure 4.4: Status of youths in Mpumalanga in 2015 Source: Statistics South Africa –QLFS 2015
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Figure 4.4 depicts the contribution of youth’s unemployment in Mpumalanga as compared to adult unemployment in the province. It is important to mention that youths represent 58.9% of the total working population in the province (Stats SA, 2015).
Figure 4.5: Youths unemployment rate in relations to total unemployment in Mpumalanga 2008-2015
Source: Statistics South Africa-QLFS 2015
In furtherance to the challenge of unemployment by youths which has close relationship with poverty and other psychological factors, female youths are worse off as they are been discriminated against in terms of few available jobs in the province thereby exposing them to many social vices and dangerous living. The increase in HIV prevalence in the province with higher percentage of affected people being young girls in the province can be traced back to this abnormally. Also, there is a dangerous trend among adults in the region, who resigns their appointments, claims their pension and got re-employed immediately as against the labour law thereby denying youths opportunity to be employed (Subject to further research).
Figure 4.6 showed the increase in unemployment among young male in the province rose from 27.8% in 2008 to 33.2% in 2015 as compared to female which rose from 39.5% in 2008 to 46.9% in 2015. This is an indication of widespread poverty among young female in the province, lack of money is associated with many mental disorders, teenage pregnancy and teenage motherhood without much supports from folks and
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partners resulting to improper upbringing of the affected child, stress of the young mother, and eventual exhaustion (untimely death).
Figure 4.6: Male and female youth unemployment in Mpumalanga Source: Statistics South Africa-QLFS 2015
Figure 4.7 depicts the unemployment contribution of youths as compared to adults in the province, furthering the exposure and vulnerability of youths in the province.
Youth’s unemployment rate is above the provincial average of unemployment. As youth unemployment rose by 5.2% from 2008 to 2016, adult unemployment rate in the province rose by 6.3 which is largely superficial considering the numbers involved. The provincial increase stood at 5.5% in the years under review. Therefore, the celebration of unemployment reduction in the province may not have effect in the lives of the youths. Lack of jobs leads to poverty, and poverty is associated with many psychological stresses, one of which is intermittent explosive disorders (IED) the anger bottled from frustration erupts at slightest provocation and cause monumental acts of destruction and violence.
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Figure 4.7: Youths unemployment rate contribution as compared to adult unemployment rate in Mpumalanga 2008-2015
Source: Statistics South Africa-QLFS 2015
Figure 4.8 gave a graphical representation of the lop-sidedness of employment opportunity among the youths in the province in relation to race. The impact of unemployment on black youths in the province is enormous considering they represent more than 80% of racial groups in the province. While Indians and coloured youth unemployment nose-dived from 2008 to 2015, black youths unemployment rose by 6.9% in the same period. White youths unemployment rose but with a smaller margin. It is important to note that attitudinal disposition of some of these black youths may be a contributory factor, as some are not interested in education despite government efforts, but this group of people represent small percentage of black youths in the province.
There are underlying factors which may be attributed to some of these behaviours, poverty, some black youths does not have what can considered home, they walk very long distance to get to school on empty stomach, some parents are absolutely irresponsible and careless about the well-being of these lads preferring to use their money on alcohol than take care of the kids, some are genuinely unemployed and have no means. Black youths contend with all these challenges giving them little or no chance to be educated enough or acquire necessary skills therefore remain unemployable.
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Figure 4.8: Youths unemployment by race in Mpumalanga Source: Statistics South Africa-QLFS 2015
Figure 4.9 highlighted how lack of skill contributed to youth’s unemployment in the province. Many employers shy away from training expenses and cannot indulge the errors associated with inexperienced employees. Resulting in loss of jobs and contributing to youth’s unemployment in the province.
Figure 4.9: Youth unemployment contribution by skills and duration Source: Statistics South Africa-QLFS 2015
100 4.3 Summary of literature review
Review of relevant literatures gave insights into what is known on the matter of discourse, psychological factors focused on stress, optimism and mood as mediating variables. Subsequently, political environment was discussed to examine the relevance of different government legislations and policies enacted to create enabling political environment in order to facilitate business growth and lastly information awareness and its relevance to entrepreneurship was examined. However, it is worthy of note to mention the following:
Mental disorders: We can safely assume that this factor may not have a big impact on the youths in the province, however one cannot rule out the significance of such important factor. Statistics showed Mpumalanga has the lowest mental disorder in South Africa as compared to other province but the fact that there are cases of mental disorders howbeit small should not be waved off with hand. Persons with mental disorders might not be interested in entrepreneurial endeavours.
Secondly, Poverty- This is a significant factor in the province, it must be stated here that poverty is not limited to lack of financial or material resources, poverty in this context cut across both physical and psychological spheres. A typical example is a young adult that spends his day lazing around in the hope of getting grant at the end of the month only to lavish all on alcohol within two days (mental poverty). Although there was an improvement in the poverty head count in the province in 2016 compared to 2015, an improvement of 1%, as poverty rate declined from 7.9% in 2015 to 7.8% in 2016. 273886 households in the province reported lack of money in the last one year, while 14.8% of the household missed meal in the same period under review (Stats SA, 2016). Unemployment has direct relationship with poverty, and the report of unemployment reduction in Mpumalanga may not necessaril y be cheerful news to the youths in the province.
In conclusion, the following factors were considered contributory factors to lack of entrepreneurial behaviour
I. Profligate: An act of wastefulness which is largely a psychological attitude towards money. There is a sense of wastefulness among South African youths with preference to acquire liabilities (not capable of maintenance) to acquiring assets. The New Age 2014 publication addresses the misconceptions of South African youths towards money, focusing on a caption “money is a means to an
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end”. It is worrisome that youths’ tends towards wasteful spending, accumulating liabilities few months after employment. The urge to show-off, or announce to
‘haters’ that one has arrived clouded any sense of rational behaviour, a good example is someone earning R15,000.00 per month buying a 2017 Audi on credit, a full settee on account, clothes and jewelleries on account all in a bid to show-off thereby digging holes of indebtedness. This is a trend among many young South Africans necessitating government efforts to increase financial literacy. Various methods were employed to educate youths on wealth accumulation as opposed to debt accumulation one of which is a short movie sponsored by STANLIB Asset Management in 2012 titled ‘Smartbucks mind your moolah’ (Stanlib, 2012). The ‘show-off’ syndrome which makes savings practically impossible is a factor affecting youths entrepreneurial interest, in as much as one is unable to postpone expenditure of non-essentials till future date such might not be able to raise initial start-up capital necessary to start a business, bearing in mind that most organisations including government would like to see the entrepreneur’s stake in the business before providing additional capital.
II. Negative perception of government: Lauren (2016) gave a vivid explanation on how youths in South Africa are expressing their grievances towards government, she posit that ‘millennial in South Africa are not apathetic’ as they take issues into their hands in an explosive manner. The aggravation is ultimately on economic emancipation as they challenge status quo head-on. A typical example was 2015 #FeeMustFall protest that brought government to her kneels. It is important to address these negative perceptions as such protest can only get worse as youths’ are becoming restless and their frustrations reaching boiling point a trend that has continued since 2004 (SCR, 2015). The lip-service on entrepreneurship as solution to nagging youth’s unemployment can only be viable and effective if enabling environment to support young South Africans to becoming entrepreneurs is provided (Lauren, 2016). The number of youths entrepreneurs reduced from 609,000 in 2009 to 543,000 in 2014 (Stats SA, 2014) a critical look at this gave an impression that youths tried to start their own businesses but without adequate supports and proper orientation some ran into losses thereby instilling fears into others, which brought about resentment
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towards government apparatus that was perceived for insincerity and not supportive enough. It is of paramount importance to harness the vigour, passion, lack of fear of failure and exhilaration inherent in youths as a resource to entrepreneurship development in South Africa, failure of which can cause catastrophic repercussions to the safety and viability of the economy (Chetty, 2016). Provision of infrastructures and enacting policies is not enough, physical engagement of youths and total overhauling and change of mind -set is a critical ingredient to successful entrepreneurial behaviour among youths in South Africa.
III. Deficiency of relevant information: information is ‘king’, access to correct and relevant information not only change perception but also gingers appropriate actions. Government needs to do more to get in the ‘head’ of youths as this will play a crucial role in achieving the level of performance needed to boost interest in entrepreneurship and subsequent reduction of poverty and violence.
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