TVET Graduates Leverage Skills To Launch Businesses With Stipend Support

TVET Graduates Leverage Skills To Launch Businesses With Stipend Support. In South Africa, where youth unemployment continues to be a pressing issue, new and innovative solutions are urgently needed to address this crisis. Among the initiatives making a significant difference is a unique stipend program aimed at empowering TVET (Technical and Vocational Education and Training) graduates to launch their own businesses. The program not only offers financial support, but it also provides essential tools and resources for graduates to transform their skills into sustainable livelihoods. The impact of this initiative is profound, creating ripple effects that go beyond individual graduates to their families and communities.
Addressing the Youth Unemployment Crisis in South Africa
South Africa faces a severe unemployment crisis, particularly among its youth. According to statistics, youth unemployment in the country is among the highest in the world, with a significant portion of young people struggling to secure stable jobs after completing their education. This problem is exacerbated for those who graduate from TVET institutions, which equip students with practical skills but often leave them facing barriers to entry into the labor market. These barriers include a lack of resources, limited access to capital, and an overall scarcity of job opportunities that match the skills these graduates have acquired.
In response to this challenge, targeted support programs have emerged, offering financial assistance and mentoring to young graduates. Among these programs, one stands out for its tangible results and its focus on giving TVET graduates the financial freedom and resources they need to start their own businesses. This initiative, which started as a pilot project, has helped graduates overcome the hurdles they face when trying to turn their vocational education into viable careers.
Turning Skills Into Business Opportunities
Mandisa Muthwa’s journey from an unemployed graduate to a thriving small business owner in Pietermaritzburg serves as a powerful example of how effective support can lead to lasting change. After completing her qualification in wholesaler and retailer food chain operation from Midlands FET College, Mandisa found herself facing the same uncertainty that many other TVET graduates experience. Despite her technical qualifications, she struggled to find a job or start a business due to a lack of capital and resources.
However, everything changed when she became one of the beneficiaries of the stipend program coordinated by the PMB Economic Justice and Dignity Group (PMBEJDG), in partnership with Misereor, a German Catholic Bishops’ Organisation for Development. The program provided Mandisa with a monthly stipend of R2000 for two years, a financial boost that allowed her to cover her expenses and invest in her business. With this support, Mandisa was able to start a small enterprise and create a sustainable income for herself.
Her story is not an isolated one. There are many other graduates who have used this stipend to kickstart their careers and businesses, from starting small trades to purchasing essential tools and equipment necessary for their work. Through these success stories, it is evident that a little financial support can go a long way in helping young people create their own opportunities.
The Stipend Program
The stipend program, which ran as a two-year pilot project, was designed to provide an unconditional cash transfer to TVET graduates in Pietermaritzburg. The funds were distributed without any restrictions, allowing the recipients to use the money in a way that best suited their needs. Whether it was for starting a business, purchasing equipment, or covering living expenses, the stipend provided these graduates with the financial flexibility they required to pursue their goals.
The primary goal of this initiative was to understand the specific financial needs of TVET graduates once they complete their studies. The program aimed to identify the challenges these graduates face when attempting to enter the workforce or start a business. It was also designed to examine how financial assistance could enable these graduates to overcome barriers and create new economic opportunities for themselves.
The program involved 164 graduates from the Pietermaritzburg area, with 100 participants selected to receive the stipend. These recipients were given the financial support they needed over a 24-month period, and the results have been overwhelmingly positive. The stipend has allowed graduates to access resources that were previously out of reach, such as tools, training materials, and capital for business operations.
The Broader Impact
While the stipend’s primary purpose was to assist graduates, its impact extended far beyond the individual recipients. Many graduates used the funds to support their families, providing financial relief during challenging times. For example, one participant used the stipend to care for her family after the death of her grandmother. This demonstrated the far-reaching effects that financial support can have, not only in terms of the individual’s success but also in helping entire households navigate difficult periods.
Mervyn Abrahams, head of PMBEJDG, explained that the stipend often had a ripple effect within households. Graduates were able to use the funds to make essential purchases or invest in their skills, which in turn improved the economic situation of their families. This speaks to the wider social benefits of providing targeted support to young people and highlights the importance of such programs in building sustainable communities.
The Experiences of Welding Graduate Mhlakwana
Mhlakwana, a welding graduate from Umgungundlovu TVET College, shared his story of how the stipend helped him overcome the financial barriers that had prevented him from starting his business. Before receiving the stipend, Mhlakwana struggled to raise the capital needed to buy welding equipment and start his trade. The lack of funding meant that despite his skills and qualifications, he could not break into the market.
Once he received the stipend, Mhlakwana was able to purchase the necessary equipment and begin offering his services. He is now running a successful welding business and contributing to his community by providing employment opportunities and services. Mhlakwana’s experience underscores the importance of having access to financial support that allows TVET graduates to leverage their skills and create income-generating opportunities.
Expanding the Initiative to Other Provinces
With the completion of the two-year stipend program, PMBEJDG is now preparing a final report that will be presented to Misereor and its German funders. The report, expected to be finalized by May 2025, will assess the effectiveness of the program and explore the feasibility of expanding it to other provinces across South Africa. If the initiative proves successful, it could serve as a model for addressing youth unemployment on a larger scale, offering a sustainable and innovative solution to the country’s economic challenges.
Mervyn Abrahams expressed hope that this initiative could lead to broader government intervention in supporting TVET graduates. “We need innovative solutions to job creation, moving beyond dependence on social grants. TVET graduates, equipped with vocational skills and a financial boost, can turn their skills into sustainable income sources,” he said.
The potential for scaling this program is enormous. With many young South Africans lacking the financial resources to start businesses, such initiatives could play a crucial role in fostering economic independence and self-sufficiency among youth. By providing TVET graduates with the means to succeed, South Africa can take significant steps toward reducing youth unemployment and creating a more vibrant, entrepreneurial economy.
Conclusion
The stipend program represents a powerful example of how targeted financial support can empower TVET graduates to turn their vocational skills into viable business opportunities. By providing unconditional financial support, the initiative has helped graduates overcome the challenges of starting a business and achieving economic independence. Moreover, the program has demonstrated the wider social impact of such support, benefiting not just individuals but also their families and communities.