Perceptions of unemployed graduates on the role of cooperatives in reducing unemployment in Cape Town

Abstract

An analysis of the prevailing macro-economic trends in South Africa reveals growing unemployment, especially amongst the youth and graduates who are not economically active which in turn increases poverty and other social phenomena. The burden is thus borne by the national government to provide essential social services and at the same time stimulate the development of the economy. To achieve the foregoing, the national government issued the National Development Plan 2030 as well as the promulgation of appropriate legislation to stimulate and strengthen the economy which include the establishment of cooperatives. However, there appears to be a reluctance by the youth and graduates in particular to participate in the economy by adopting this initiative. The purpose of the research study was, therefore, to establish the awareness and perceptions of unemployed graduates on the role of cooperatives in creating employment opportunities The literature review provided the premise for the development of the qualitative exploratory research design within an interpretative framework. Focus group sessions were convened as the data collection method with registered graduates in four purposively selected academic departments within a selected University of Technology located in the Western Cape Province. The selected academic departments represented the economic sectors identified in the National Development Plan, 2030 as essential in stimulating the economy. Thematic analysis was the method employed to analyse the primary data collated arising from the focus group sessions which was structured in accordance with the seven questions formulated on each of the focus group guidelines. The findings and conclusion arising from the research study revealed that the graduates experienced a fear of failure and a lack of funding and capital. Furthermore, the graduates could not understand the distinction and benefits between creating employment opportunities and seeking jobs. Finally, the graduates were unaware that funding was available and that there were procedures and support structures available to access this funding. In view of the foregoing, the following recommendations are suggested: • To conduct a further research project by increasing the research population with the inclusion of other Higher Education Institutions (HEIs) to validate the findings arising from this single case study; • To design, develop and convene communication and information sharing workshops on the role and benefits of cooperatives with unemployed graduates within the four HEIs located within the Western Cape Province; • To follow up with participants to establish whether or not there is increased understanding of the essence of cooperatives as well as its purpose and benefits; and • To follow up with participants to ascertain if any of them had established a cooperative.