ENTREPRENEURSHIPENTREPRENEURSHIP

Muhammad Tariq MashwaniMuhammad Tariq Mashwani

Definition of Youth Definition of Youth EntrepreneurshipEntrepreneurship

• Unfortunately there is not general agreed Unfortunately there is not general agreed definition of youth entrepreneurship.definition of youth entrepreneurship.

• ““Entrepreneurship is the recognition of an Entrepreneurship is the recognition of an opportunity to create value, and the process opportunity to create value, and the process of acting on this opportunity, whether or not it of acting on this opportunity, whether or not it involves the formation of a new entity. While involves the formation of a new entity. While concepts such as “innovation” and “risk concepts such as “innovation” and “risk taking” in particular are usually associated taking” in particular are usually associated with entrepreneurship, they are not necessary with entrepreneurship, they are not necessary to define the term.”to define the term.”

Q: WHY BE AN ENTREPRENEUR?Q: WHY BE AN ENTREPRENEUR?

A: Its a Win-Win-Win-Win-Win SituationA: Its a Win-Win-Win-Win-Win Situation

You winYou win …… Get Rich!Get Rich!Your employees winYour employees win …… Make them rich!Make them rich!Your investors winYour investors win … Make them rich … Make them rich

too!too!Your customers winYour customers win …… Make them Make them

happy!happy!Your state and your country wins …Your state and your country wins …

Create jobs!Create jobs!

It’s the best job in the world!It’s the best job in the world!

GLOBAL YOUTH GLOBAL YOUTH ENTREPRENUERSHIP SCENARIOENTREPRENUERSHIP SCENARIO

Youth UnemploymentYouth Unemployment

• Young people represent one fifth of the world’s Young people represent one fifth of the world’s population and 50% of the total unemployed population and 50% of the total unemployed global workforce.global workforce.

• Youth unemployment is one of the major Youth unemployment is one of the major challenges faced by most governments in the challenges faced by most governments in the world.world.

• Youth comprise more than 98 million of the total Youth comprise more than 98 million of the total of 192 million unemployed people.of 192 million unemployed people.

• 85% of these people live in developing countries85% of these people live in developing countries– Over quarter of all youth in Asia are unemployed.Over quarter of all youth in Asia are unemployed.– A third of all youth in Central and Eastern Europe are A third of all youth in Central and Eastern Europe are

unemployed.unemployed.

Challenges of Youth Challenges of Youth EntrepreneurshipEntrepreneurship

• Social and cultural attitude towards Social and cultural attitude towards young entrepreneurshipyoung entrepreneurship– Not being seriously taken by colleagues or Not being seriously taken by colleagues or

business contactsbusiness contacts– Age discrimination by suppliers or customersAge discrimination by suppliers or customers– Difficulties in attracting funding to the Difficulties in attracting funding to the

businessbusiness– Age discrimination by institution or the Age discrimination by institution or the

governmentgovernment– Lack of support from family or friendsLack of support from family or friends

Challenges of Youth Challenges of Youth EntrepreneurshipEntrepreneurship

• Access to finance / start-up financingAccess to finance / start-up financing– Lack of personal saving and resourcesLack of personal saving and resources– Lack of security and credibilityLack of security and credibility– Lack of business experience and skillsLack of business experience and skills– Strict credit – scoring methodologies and Strict credit – scoring methodologies and

regulationsregulations– Long waiting periods Long waiting periods – Lack of knowledge, understanding, awareness of Lack of knowledge, understanding, awareness of

start up financing possibilitiesstart up financing possibilities– Lack of micro lending / -finance and seed Lack of micro lending / -finance and seed

fundingfunding

Challenges of Youth Challenges of Youth EntrepreneurshipEntrepreneurship• Business assistance and support Business assistance and support

– Lack of business connections: Business contacts, Lack of business connections: Business contacts, suppliers, suitable partners and networkssuppliers, suitable partners and networks

– Lack of knowledge of available business support Lack of knowledge of available business support servicesservices

– Lack of tailor made business training and advice for Lack of tailor made business training and advice for young start-upsyoung start-ups

– Lack of trained counselors, development workers Lack of trained counselors, development workers and adequate support agenciesand adequate support agencies

– Lack of mentoring capacitiesLack of mentoring capacities– Lack of exchange networks forums and meeting Lack of exchange networks forums and meeting

placesplaces– Lack of other business development servicesLack of other business development services

Advantages of Youth Advantages of Youth EntrepreneurshipEntrepreneurship• Every successful entrepreneur brings about Every successful entrepreneur brings about

benefits not only for himself/ herself but for local, benefits not only for himself/ herself but for local, region or country as a whole. The benefits that region or country as a whole. The benefits that can be derived from entrepreneurial activities are can be derived from entrepreneurial activities are as follows:as follows:– Self-employment, offering more job satisfaction and Self-employment, offering more job satisfaction and

flexibility of the work force flexibility of the work force – Employment for others, often in better jobs Employment for others, often in better jobs – Development of more industries, especially in rural Development of more industries, especially in rural

areas or disadvantaged regions, areas or disadvantaged regions, – Encouragement of the processing of local materials into Encouragement of the processing of local materials into

finished goods for domestic consumption as well as for finished goods for domestic consumption as well as for export export

– Income generation and increased economic growth Income generation and increased economic growth – Healthy competition thus encourages higher quality Healthy competition thus encourages higher quality

products products

Advantages of Youth Advantages of Youth EntrepreneurshipEntrepreneurship

– Development of new markets Development of new markets – Promotion of the use of modern technology in small-Promotion of the use of modern technology in small-

scale manufacturing to enhance higher productivity scale manufacturing to enhance higher productivity – Encouragement of more researches/ studies and Encouragement of more researches/ studies and

development of modern machines and equipment for development of modern machines and equipment for domestic consumption domestic consumption

– Development of entrepreneurial qualities and Development of entrepreneurial qualities and attitudes among potential entrepreneurs to bring attitudes among potential entrepreneurs to bring about significant changes in the rural areas about significant changes in the rural areas

– Freedom from the dependency on the jobs offered by Freedom from the dependency on the jobs offered by others others

– The ability to have great accomplishments The ability to have great accomplishments – Emigration of talent may be stopped by a better Emigration of talent may be stopped by a better

domestic entrepreneurship climatedomestic entrepreneurship climate

Opportunities of Youth Opportunities of Youth Entrepreneurship Entrepreneurship

• Fight against Youth Unemployment is part of the Fight against Youth Unemployment is part of the Millennium Development Goals.Millennium Development Goals.

• UN Secretary General in association with World Bank UN Secretary General in association with World Bank and International Labor Organization initiated the and International Labor Organization initiated the Youth Employment Network (YEN)Youth Employment Network (YEN)

• YEN was created to mobilize and engage all major YEN was created to mobilize and engage all major stakeholders to promote youth entrepreneurship.stakeholders to promote youth entrepreneurship.– Public Sector (Governments at national, regional or local Public Sector (Governments at national, regional or local

level)level)– Private Sector (Entrepreneurs, Banks, Investors, small and Private Sector (Entrepreneurs, Banks, Investors, small and

large companies, trade associations and unions)large companies, trade associations and unions)– Non-profit Sector (NGOs, IOs, youth associations, YE clubs Non-profit Sector (NGOs, IOs, youth associations, YE clubs

and networks, Universities, Private foundations and think and networks, Universities, Private foundations and think tanks)tanks)

– Other stakeholders (Public or private media, donor agencies)Other stakeholders (Public or private media, donor agencies)

•

WHAT MAKES A

COOLENTREPRENEUR?

THEY’VE GOT IMAGINATION

THEY FOLLOW CHILDHOOD DREAMS

THEY INSPIRE

THEY STICK TO PRINCIPLES

THEY DIG TECHNOLOGY

THEY PULL A CROWD

Laurent Haug introducing a Lift speaker. Photo: Ivo Naepflin

THEY GET YOU THINKING

THEY CARE ABOUT THE DETAILS

THEY LIKE MAKING THINGS

THEY HAVE FUN

THEY CROSS BORDERS

AND TAKE TO THE SKIES

THEY KEEP SMILING

THEY LOVE THEIR BUSINESS

THEY’RE COOL ENTREPRENEURS

Questions??Questions??