Evaluation of the new venture creation learnership programme offered by the Sector Education Training Authorities in South Africa

Date
2014-02-19
Authors
Naidoo, Denver
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Abstract
“Small, Medium, and Micro-Enterprises (SMMEs) represent an important vehicle to address the challenges of job creation, economic growth, and equity in our country. Throughout the world one finds that SMMEs are playing a critical role in absorbing labour, penetrating new markets and generally expanding economies in creative and innovative ways” (McGrath, 2005; p.6). The study assessed the “New Venture Creation (Small, Medium, and Micro Enterprises (SMME)” National Qualifications Framework (NQF) Level 2 learnership program offered by the Sector Education and Training Authorities (SETAs) namely the Services SETA (SSETA) and the Management, Engineering and Related Services (merSETA). The primary purpose of the study is to contribute towards the development of an effective new venture creation training program for entrepreneurs within South Africa (SA). A quantitative approach was therefore best suited to identify the crucial factors affecting the outcome of the above investigation. A 7-point Likert scale was used as the measuring instrument. The captured data was analysed using both descriptive and inferential statistic methods. The mode, mean, frequencies, standard deviation, Chi-square, and regression analyses were used. The key findings were that more than 90% of new ventures were created across all industry sectors since the completion of the “New Venture Creation (SMME)” learnership programme for the sample population tested. The Return on Investment (ROI) proved to be very attractive with benefits exceeding the cost of the training within a 12-month period. Overall, the research supported the claim that the “New Venture Creation (SMME)” learnership program is adding value to the development of young entrepreneurs in the sectors covered by the study. The program however does have some areas of concern that need attention, and could restrict the future growth of entrepreneurs if attention is not provided in this regard.
Description
MBA thesis
Keywords
New venture creation, Entrepreneurship, Training
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