Opinion
Fostering Youth Enterprise
Why we should do it and how
By Saarah Khan
The world’s youth, aged 15-29, accounts for nearly a quarter of the total global population, and yet youth unemployment is remarkably high, both in developed and undeveloped countries alike, where youths are twice as likely to be jobless, when compared to adults.
Youth enterprise offers a market-driven approach to achieve social and economic development, by simply finding an innovative way to deliver new products and services. This results in a decreased dependency on archaic systems and technologies and a reduction in poverty by providing an avenue for employment and occupational activity amongst youth. At the same time, contributing significantly to sustainable economic growth, enhanced competitiveness and productivity through the development of new markets and business models.
Young people are historically a force for driving sustainable change, economically, socially and environmentally. Entrepreneurs can tap into new and niche opportunities, which can inspire related businesses and sectors that support the venture, thereby stimulating economic growth. These ventures also generate new wealth streams and the development of new markets, resulting in increased employment and higher earnings contributing to national income, further stimulating the economy.
Many entrepreneurs often support ventures by other like- minded individuals and invest in the development of their communities, as the qualities that motivate them to become an entrepreneur are the same ones that motivate them to “pay it forward”.2 We have seen the push locally from young entrepreneurs to place more emphasis on the impacts of businesses, with initiatives such as IAMovement, which promotes events and activities that raise awareness for positive social, environmental and economic issues and offers a space for discussion.
In any economy, entrepreneurship is an essential multiplier, as a single idea can create a number of jobs and revenue for a country. However, the idea alone cannot result in the best outcome as it needs support and care to reach maximum potential. While more than 40% of youth prefer self-employment and believe it to be feasible, few are able to sufficiently sustain themselves in this career path. This is due to the significant barriers faced by young entrepreneurs, especially for those in rural environments. The most common of these are a lack of education and training programmes specifically geared to entrepreneurial skills, lack of financial resources and access to funding, limited business networks and market barriers.
The role of the government and policymakers is vital in fostering an entrepreneurial ecosystem. This can be accomplished through a variety of policies and programmes focusing on modifying regulations to combat any unwanted social outcomes, such as loss of career choices, unfair market practice, and income inequality. Governments can also support youth enterprise by easing business environment constraints, promoting value chain integration and strengthening capacity to improve business practices.
Access to financial support is also a key factor in the success of any enterprise, and more so for a youth driven enterprise as this group often has the least access to ready capital. Many governments and institutions around the world have created developmental programmes that offer grants and funding options specifically tailored to the needs of participating youths. Another option is to provide young entrepreneurs with financial advice and access to potential angel investors, venture capital or the facilitation of debt financing options through training programmes and workshops.
The non-financial support may be even more important in terms of supplying a knowledge base for new entrepreneurs to develop the business, technical and life skills necessary to excel. This can be achieved through partnering with educational institutions and organisations, establishing incubators to support innovation and business start- ups, offering training and mentorship opportunities through conferences, workshops, competitions and other activities, as well as developing a support network of young entrepreneurs.
A great example would be the annual Emerge Conference run by The Skoll Centre for Social Entrepreneurship, which is a social impact centre within Saïd Business School at the University of Oxford. Programmes like these provide an outlet for students, young professionals, entrepreneurs and organisations from across the globe to interact with others, who have an interest in driving transformational sustainable change, to discuss and experience a diverse range of topics and ideas for socially impactful entrepreneurial outcomes. These types of events are also a unique opportunity to network, build skills, and interact with experts and peers, and can be incredibly important as a resource for young entrepreneurs to hone their skills and learn from a community of innovators and potential mentors.
Locally there are organisations like Youth Business Trinidad & Tobago (YBTT), which provide support to young entrepreneurs in the form of funding, mentorship, learning and development opportunities and support programmes, with the support of the business community.
Ultimately, entrepreneurship is a powerful tool to combat youth unemployment and to jump-start the economy. There is a real value in fostering the rise of youth enterprise as it can have a positive impact on the economy, society and the environment, allowing for true sustainable growth.
Saarah Khan is a graduate of Cranfield University, United Kingdom. (MSc Management & Corporate Sustainability), and a member of the Chartered Management Institute, United Kingdom (CMI Level 7 Dip Strategic Management and Leadership (QCF). You can email Saarah to work with corporate in- house sustainability teams at: saarah.khan812@gmail.com
