Youth unemployment is one of today’s big global challenges. The World Bank estimates we need 600 million new jobs in the next 10 years just to keep global employment rates constant and according to the International Labor Organization, 73.3 million of the world’s unemployed are young people (about 36%). Add ‘under-employed’ youth to this and the number triples; over 169 million young people earn less than US$2 per day. The problem is even greater in rural communities where increasing migration to urban areas around the world means a higher concentration of rural poverty.
Youth entrepreneurship offers innovative solutions for economic growth among young people. But youth enterprise initiatives are still relatively new to global development. How can programmes best support sustainable youth entrepreneurship? Here are our top five lessons:
1. Get families and communities on
To date, most youth programmes focus on entrepreneurs and the entrepreneurship ecosystem, but don’t take into account the role of the family and community. Family support to start and operate a business is one of the most influential factors in the ability of entrepreneurs to make headway, especially for rural youth. Finding ways to engage and gain support from families and communities is vital.
2. Develop business, technical and
life skills for use beyond the project
Many young people, especially in developing economies, turn to entrepreneurship because of lacking job opportunities. But they might not always be in entrepreneurial roles. Development programmes that feature skills training that can be used beyond the end of the project are more attractive to youth, families and communities.
3. Think carefully about how to
support young people to access finance
For young entrepreneurs, obtaining access to capital is essential to establish or expand businesses. Unfortunately, these young people typically have the least access to ready capital. Accessing finance varies from country to country – but also from community to community. As such, development programmes need to plan carefully how best to support young people to get the funds they need. This means thoroughly examining different financial models and developing products tailored to the needs of participating youth.
4. Use mentors and set clearly
Mentors can help young people to examine their business plans and ideas. They connect them to larger networks, act as role models and demonstrate models of success. Literature and evaluation on youth entrepreneurship indicates that for mentorship to make a difference, mentors and youth entrepreneurs must have strong relationships based on clearly defined goals and obligations.
5. Be ready to adapt your approach
for different contexts
Rural poverty has some universal characteristics, but the problems youth entrepreneurs face require locally grounded solutions. Young people are more vulnerable to external changes (such as changes in climate, economic crisis, or political and social changes) and may have different needs and aspirations, depending on their local environment. Adaptability and adjustability can be the lifeline of a programme, as situations arise and evolve.
Entrepreneurship can be a powerful tool to help fight
youth unemployment. We want to promote a
culture of innovation and entrepreneurship that will help to grow and diversify
country business base, while
also helping young
people of all backgrounds to
fulfil their potential.