presentaion on youth entrepreneurship - 2007

Youth EntrepreneurshipYouth Entrepreneurship

Opportunities and ChallengesOpportunities and Challenges

Presented by :Ediola Pashollari Deputy Secretary GeneralWorld Assembly of Youth

Definition of Youth EntrepreneurshipDefinition of Youth Entrepreneurship

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

(suggested by a paper in Australia)(suggested by a paper in Australia)

Types of youth entrepreneurshipTypes of youth entrepreneurship

Economic, social and public Economic, social and public entrepreneurshipentrepreneurship

Intrapreneurship (Corporate Intrapreneurship (Corporate entrepreneurship) and co-operativesentrepreneurship) and co-operatives

Categorization of young Categorization of young entrepreneursentrepreneurs• Pre-entrepreneurs (15-19 years)Pre-entrepreneurs (15-19 years)• Budding entrepreneurs (20-25 years)Budding entrepreneurs (20-25 years)• Emergent entrepreneurs (25-29 years)Emergent entrepreneurs (25-29 years)

Youth UnemploymentYouth Unemployment

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

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

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

85% of these people live in developing countries85% of these people live in developing countries• Over quarter of all youth in Sub- Sahara are unemployed.Over quarter of all youth in Sub- Sahara 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.• One seven youth in developed countries are either in One seven youth in developed countries are either in

education or in employmenteducation or in employment

Challenges of Youth EntrepreneurshipChallenges of Youth Entrepreneurship

Social and cultural attitude towards young Social and cultural attitude towards young entrepreneurshipentrepreneurship• Not being seriously by colleagues or business Not being seriously by colleagues or business

contactscontacts• Age discrimination by suppliers or customersAge discrimination by suppliers or customers• Difficulties in attracting funding to the businessDifficulties in attracting funding to the business• 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


Entrepreneurship educationEntrepreneurship education• General lack of introduction and adoption of General lack of introduction and adoption of

enterprise educationenterprise education• Inadequate curricula and study programmesInadequate curricula and study programmes• Wrong learning methodsWrong learning methods• Negligence of students’ personal environmentNegligence of students’ personal environment• Lack of trained / educated teachersLack of trained / educated teachers• Lack of career information and business Lack of career information and business

possibilitiespossibilities• Lack of business and education linkages Lack of business and education linkages • Lack of ICT infrastructure / capabilityLack of ICT infrastructure / capability


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 regulationsStrict credit – scoring methodologies and regulations• Long waiting periods Long waiting periods • Lack of knowledge, understanding, awareness of start – Lack of knowledge, understanding, awareness of start –

up financing possibilitiesup financing possibilities• Unfavorable firm characteristics and industryUnfavorable firm characteristics and industry• Lack of status / form of enterpriseLack of status / form of enterprise• Lack of micro lending / -finance and seed fundingLack of micro lending / -finance and seed funding


Administrative and regulatory frameworkAdministrative and regulatory framework• Unsupportive tax regimesUnsupportive tax regimes• Business registration procedures and costsBusiness registration procedures and costs• Bankruptcy laws: Time and costs involved in Bankruptcy laws: Time and costs involved in

insolvency proceedingsinsolvency proceedings• Ineffective competition lawIneffective competition law• Regulatory framework changes and lack of Regulatory framework changes and lack of

transparencytransparency• Property right, copyright, patent and Property right, copyright, patent and

trademark regulationstrademark regulations


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 servicesLack of knowledge of available business support services• 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 and Lack of trained counselors, development workers and

adequate support agenciesadequate support agencies• Lack of mentoring capacitiesLack of mentoring capacities• Lack of work space and ICT infrastructureLack of work space and ICT infrastructure• Lack of exchange networks forums and meeting placesLack of exchange networks forums and meeting places• Lack of other business development servicesLack of other business development services

Advantages of Youth EntrepreneurshipAdvantages of Youth Entrepreneurship

Every successful entrepreneur brings about benefits not Every successful entrepreneur brings about benefits not only for himself/ herself but for the municipality, region or only for himself/ herself but for the municipality, region or country as a whole. The benefits that can be derived from country as a whole. The benefits that can be derived from entrepreneurial activities are as follows:entrepreneurial activities are as follows:• Self-employment, offering more job satisfaction and flexibility Self-employment, offering more job satisfaction and flexibility

of the work force 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 areas or Development of more industries, especially in rural areas or

regions disadvantaged by economic changes, for example due regions disadvantaged by economic changes, for example due to globalisation effects to globalisation effects

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

• Income generation and increased economic growth Income generation and increased economic growth • Healthy competition thus encourages higher quality products Healthy competition thus encourages higher quality products • More goods and services available More goods and services available

Advantages of Youth EntrepreneurshipAdvantages of Youth Entrepreneurship

• 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 attitudes Development of entrepreneurial qualities and attitudes among potential entrepreneurs to bring about among potential entrepreneurs to bring about significancant changes in the rural areas significancant 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 • Reduction of the informal economy Reduction of the informal economy • 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 Millennium Fight against Youth Unemployment is part of the Millennium Development Goals.Development Goals.

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

YEN was created to mobilise and engage all major YEN was created to mobilise and engage all major stakeholders to promote youth entrepreneurship.stakeholders to promote youth entrepreneurship.• Public Sector (Governments at national, regional or local level)Public Sector (Governments at national, regional or local 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 and Non-profit Sector (NGOs, IOs, youth associations, YE clubs and

networks, Universities, Private foundations and think tanks)networks, Universities, Private foundations and think tanks)• Other stakeholders (Public or private media, donor agencies)Other stakeholders (Public or private media, donor agencies)

Importance of Promoting Youth Importance of Promoting Youth EntrepreneurshipEntrepreneurship

Creating employment opportunities for self-employed youth Creating employment opportunities for self-employed youth as well as the other young people they employ.as well as the other young people they employ.

Bringing alienated and marginalized youth back into the Bringing alienated and marginalized youth back into the economic mainstream and giving them a sense of meaning economic mainstream and giving them a sense of meaning and belonging.and belonging.

Helping address some of the socio-psychological problems Helping address some of the socio-psychological problems and delinquency that arises from joblessness.and delinquency that arises from joblessness.

Helping youth develop new skills and experiences that can Helping youth develop new skills and experiences that can then be applied to other challenges in life.then be applied to other challenges in life.

Promoting innovation and resilience in youth.Promoting innovation and resilience in youth. Promoting the revitalization of the local community by Promoting the revitalization of the local community by

providing valuable goods and services.providing valuable goods and services. Capitalizing on the fact that young entrepreneurs may be Capitalizing on the fact that young entrepreneurs may be

particularly responsive to new economic opportunities and particularly responsive to new economic opportunities and trends.trends.

Youth Entrepreneurship PoliciesYouth Entrepreneurship Policies

Aimed at the pre-start-up (Including Aimed at the pre-start-up (Including entrepreneurship education), start-up and entrepreneurship education), start-up and post start-up phases of the entrepreneurial post start-up phases of the entrepreneurial process,process,

Designed and delivered to address the Designed and delivered to address the areas of motivation, opportunity and skillsareas of motivation, opportunity and skills

With the main objective of encouraging With the main objective of encouraging more young people to start an more young people to start an entrepreneurial undertaking or venture entrepreneurial undertaking or venture and at the same time to improve young and at the same time to improve young people’s general employability. people’s general employability.

WAY Contribution to Youth WAY Contribution to Youth Entrepreneurship Entrepreneurship

Global Youth Entrepreneurship Forum Global Youth Entrepreneurship Forum • ICT and Small Business (2006), ICT and Small Business (2006),

IndonesiaIndonesia Melaka International Youth Dialogue Melaka International Youth Dialogue

• Youth Employment (2002), MalaysiaYouth Employment (2002), Malaysia• Youth and Tourism (2007), MalaysiaYouth and Tourism (2007), Malaysia

Other programmes related to youth Other programmes related to youth employment issues. employment issues.

Thank You!Thank You!

Ediola PashollariEdiola Pashollari

Deputy Secretary GeneralDeputy Secretary General

World Assembly of YouthWorld Assembly of YouthWorld Youth ComplexWorld Youth Complex

Lebuh Ayer KerohLebuh Ayer Keroh

75450, Melaka75450, Melaka

MalaysiaMalaysia

Tel: 006-06-2322711,2321871Tel: 006-06-2322711,2321871

Fax: 006-06-2327271Fax: 006-06-2327271

Email: Email: [email protected]@way.org.my

Website: www.way.org.myWebsite: www.way.org.my