Partnerships between higher education institutions, government and private enterprises for the development of micro enterprises in the Cape Metropolis

Abstract

The focus of this study is partnerships between Higher Education Institutions (HEIs), Government and Private Enterprises in the Cape Metropolis for the purpose of encouraging HEIs to explore the meaning and implications of partnerships and play an active and leading role towards an integrated holistic approach to development. The study arose from documented studies that indicate that universities have given little attention to the study of partnerships (Mitchell and Rautenbach 2005) even though there is worldwide support for an integrated holistic approach to development which focuses on the facilitation and strengthening of partnerships towards achieving holistic and sustainable development (Teichler 2000; Wessels, Mosime and Seitheisho 2000; Foster and Stephenson 1998; Garrick and Kirkpatrick 1998; Teichler 1998; Birch 1988). The study is set against the general literature on the importance of partnership development and maintenance, the expected role of universities, industry and government in entrepreneurship development, the support of SMMEs in South Africa, challenges that face micro-enterprises and the growing interest around the world for active involvement and greater participation from different stakeholders in order to address the social and economic needs of the people. Using the triple helix theory of university, industry and government relations, the study supports a move from a more dominant industry-government approach in the industrial society to a growing triadic relationship between universities, government, and industry in the knowledge society. As suggested by Brundin et al (2008) and Leydesdorff (2012), the study regards the Triple Helix Model as not only a useful strategy for regional development and advancement of the knowledge economy but also as a useful technique for the growth and development of entrepreneurship.in general and micro-enterprises in particular. Both qualitative and quantitative research approaches were used. The tools for data collection included structured interviews, questionnaires, and a document study. The population and sampling technique was purposive in nature, and it comprised of one (1) Institution of Higher Education, two (2) government departments, two (2) private enterprises and fifteen (15) micro-enterprises. The research findings indicated that there are partnerships between institutions of higher learning, government, and private enterprises existing and are able to advance micro-enterprises in the Cape Metropolitan area. Interestingly, the partnerships seem to be mostly between one organisation and the micro-enterprise. The study also identifies seven role-players within the partnerships, different models and processes in initiating partnerships as well as three main approaches to maintaining partnerships. Findings show that the partnerships resulted in material and purposive incentives including financial assistance, educational advancement, skills development, working space provisions as well as technological assistance. Partnerships are generally characterised by lack of sustainability with partnerships existing for a few months and a year with very few exceeding three years. Partnership challenges were in relation to communication, procedures, limited stakeholder participation and unclear benefits in some instances. The study calls for Higher Education Institutions (HEIs) at regional and national levels to play an active and leading role in forming partnerships for entrepreneurship development. Although it is acknowledged that there are current initiatives by HEIs to encourage entrepreneurship, such initiatives should include all relevant stakeholders. Currently, the Department Higher Education and Training (DHET) through Entrepreneurship Development in Higher Education (EDHE) there seems to be a move by the higher education sector to encourage, promote and support entrepreneurship development. This initiative (programme) according to the EDHE is to focus on people with an intention of developing the entrepreneurial capacity of various stakeholders including students, academics, and leaders. To this effect, the programme goals are student entrepreneurship, Entrepreneurship development in academia and developing entrepreneurial universities. The significance of the study is that it could throw some light on why many micro-enterprises are facing challenges and what support do they need. It could also address partnership issues that are related to Work Integrated Learning (WIL) in HEIs and assist students to be successful entrepreneurs upon graduation.