The role of tertiary education in promoting self employment : a study of project management students at a South African university of technology

Abstract

Human capital is both a key driver of economic growth and a means to promote overall development. In order to enhance human capital in South Africa, tertiary institutions have seen a tremendous increase in students' enrolment over the past few decades. But, in spite of the need for skilled labour, tertiary education graduates are increasingly faced with unemployment, which poses a serious obstacle to the economic growth of the country. This study investigated the role of tertiary education in enhancing selfemployment among project management graduates. This study was descriptive in nature and intended to find answers to research questions, which comprised the extent to which tertiary education seeks to motivate students to self employment. In addition, the study sought to find challenges related to self-employment facing project management students after they have completed their studies, as well as reasons why some people choose self-employment over salaried employment. Data were collected with the use of a self-administered structured questionnaire. Collected data were analysed using of the statistical software for social science (IBM SPSS Statistics version 19) for descriptive statistics in the form of tables and charts. Furthermore, statistical tests, using chi-square values at the 0.05 level of significance, were performed to determine factors influencing individuals to choose a self-employment career. The study found that education may either enhance individual entrepreneurial ability, thereby increasing the likelihood of choosing self-employment or increase opportunities for paid employment, both of which reduce unemployment. In addition, tertiary education provides human capital that enables graduates to achieve increased level of productivity, which leads to earning more income than lower educated people in both paid employment and self-employment career. Unfortunately, graduates face financial related challenges, which constrain them from undertaking self-employment endeavours. The results of this study suggest that graduate unemployment can only be eliminated if students are provided with the right skills and knowledge to match the requirement of the employment market. Furthermore, the study suggests that graduates should be assisted financially at the initial stage of their self-employment activities.