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Challenges faced by YOUNG African Entrepreneurs

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Very briefly, I would like to mention the main problems faced by young entrepreneurs in Africa are education, lack of access to finance, lack of mentorship, cultural barriers and under-development of ICT and transportation in Africa.

In my short presentation this morning, I’m going to cover three main points namely:

•Education

•Access to finance

•Communication technologies

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EDUCATION

• Education is perhaps one of the most important contributors to success in life. Although Comprehensive Education is important, it is necessary to equip and train the youth in other life skills such as basic business start up courses, bookkeeping, accounts and so on.

 • Many young people fall short in this field, in that

they lack specialized skills and knowledge in the business field thus making them likely targets for failure when they venture into entrepreneurship.

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For example in Burundi, BBIN, Burundi Business Incubator is where young people can pay a minimal fee to enrol in entrepreneurship courses. The main barrier however is most of the youth are unable to afford the fees for courses such as these. What can be done to improve access to these courses for the youth ? How can these courses be made affordable or obtain sponsorship for poor and disadvantaged youth to attend vital trainings such as these.

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ACCESS TO FINANCE

Access to finance is a major challenge for most of the youth who want to set up small enterprises. They do not meet the most basic requirements that qualify one to successfully apply for and secure a small credit loan. Banks stipulate that everyone seeking a loan, however small have some form of collateral.

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Interests rates on loans are too high and in more instances than not cripple young entrepreneurs in their business careers as they are unable to make the payments on a regular basis if their businesses are not thriving due to a variety of factors such as poor yield of crops, theft, damage to goods and so on.

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ILLITERACY

Most Young Entrepreneurs are unable to draw up a basic business plan due to lack of literacy. They do not have prior knowledge of bookkeeping or accounts, they do not know the basics of how to setup and run a business.

Most of the time, those that do try without any basic skills are more than likely doomed to fail.

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Banks: In developing countries such as Africa, large banks are mainly found in the central business districts of cities and large towns. Remote areas hardly have access to banking facilities posing a major obstacle to young entrepreneurs.

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UNDERVELOPED COMMUNICATION TECHNOLOGIES

•In most parts of rural Africa, communication technology is underdeveloped due to lack of finance, poor governance, lack of infrastructure and no transportation networks leading in and out of cities,towns and villages . •As a result young entrepreneurs may not be able to afford the high cost of transport to large towns and cities for trade purposes.

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CONCLUSION AND RECOMMENDATIONS

I would like to conclude by making some recommendations to help address the specific issues raised in this short presentation today: 1. Strong political commitment from governments by making Education specific to certain groups and an overhaul of the education system.  2. Affordable training facilities accessible to all youth, and pattern youth centers after developed nations in the West. 

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CONCLUSION AND RECOMMENDATIONS

3. Mobile Youth Centers for business entrepreneurship run by young entrepreneurs as role models and mentors to other like youth. 4. Business Incubators in both rural and urban areas to cultivate a strong business climate conducive to learning the ropes of successful entrepreneurship. 5. Support from Private Sectors to encourage unpaid internships for disadvantaged youth.

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Compiled and presented by Class 2BWILLIAMS ACADEMY 2013/14

Mrs Suavis NDUWIMANA team leaderDr François NIYONZIMA coordinator,Mr Tharcisse NDEREYIMANA stage manager,Mrs Vinciane MBARUSHIMANA member,Mr Viator NIYONGABO member & main presenter