Answer to Question #243096 in Macroeconomics for Precilla

Question

The south African economy has been experiencing either negative or stagnant growth for more than a decade. This has resulted in high level of unemployment. President Ramaphosa has promised to come up with a recovery plan as a way of reviving the ailing economy. However, despite the endeavor the government is making, more and more jobs are lost every day. The lesson learnt from other countries facing the same situation as ours is that entrepreneurship ends up as a safe-haven for those who cannot be absorbed in the mainstream of the economy (formal sector).it also serves as the bloodline of the economy.

In light of this, discuss the role that tertiary education can play in order to address unemployment problem in South Africa. (Hint: focus on the role of transforming universities into entrepreneurial universities)

Answer 1

Tertiary education can encourage students to come up with innovative ideas to create opportunities within the economy. Students tend to discover how some of the practices can be improved. This comes as people use the current experience to improve their skills. Based on this fact, people will create opportunities, hence reducing unemployment.