The process of boosting support for different demographic segments of our societies has been at play for more than a century. Economies suffer when any communities are not able to contribute to the best of their ability.
When we embarked on a campaign in 2008 to empower more citizens of any country to explore their potential as an entrepreneur, we learned that for many political leaders around the world their motivation to engage with us was youth unemployment. With almost all net new jobs coming from firms less than five years old, it was clear that inspiring youth to start companies was smart policy.
In a few weeks that campaign – Global Entrepreneurship Week – will celebrate its 17th year and it is still about lighting the candles in the hearts and minds of new generations of dreamers, doers and risk takers.
As we navigate the complexities of a post-inflationary economy and face the looming specter of faltering growth, the importance of nurturing young entrepreneurs has never been more critical. It is for this reason that the Global Entrepreneurship Network, in collaboration with Youth Business International has launched a new Youth Entrepreneurship Framework.
This framework arrives at a pivotal moment for young people globally. The latest figures show that the youth unemployment crisis continues unabated, with the International Labour Organization reporting that 20% of the world’s youth population are not in employment, education or training (NEET). Yet, amidst these challenges lies a wellspring of untapped potential. Research shows that 40% of young people aspire to launch a business, compared to just eight percent currently running companies. This gap represents not just a loss of economic opportunity, but a missed chance to harness the innovative spirit and fresh perspectives that young entrepreneurs bring to the table.
The Youth Entrepreneurship Framework offers a roadmap to bridge this gap, providing policymakers and stakeholders with the latest actionable insights and strategies to unlock the potential of youth entrepreneurship. At its core, the framework identifies four key areas of focus: pipeline development, business environment optimization, access to finance, and growth support.
In addressing the pipeline challenge, the framework offers 18 policy options designed to boost the number of young people starting businesses. These range from embedding entrepreneurship education in school curricula to providing practical experiences and exposure to successful entrepreneurs. The goal is clear: to transform entrepreneurial aspirations into concrete action.
The business environment remains a significant hurdle for young entrepreneurs, who often lack the experience and networks to navigate complex regulatory landscapes. The framework proposes seven policy options to alleviate these pressures, including streamlined business registration processes and the creation of single digital gateways for startups. These measures aim to level the playing field, ensuring that young innovators can focus on building their businesses rather than grappling with bureaucratic red tape.
Access to finance remains a critical barrier for startups of all kinds, with young entrepreneurs often excluded from traditional financing options due to stringent creditworthiness criteria and collateral demands. The framework offers 12 recommendations to address this, including a range of targeted programs and alternatives to collateral. Critically, it emphasizes the need for financial literacy training, recognizing that access to capital alone is insufficient without the skills to manage it effectively.
Growth support forms the final pillar of the framework, with eight recommendations aimed at improving ecosystem offerings for young people. From providing dedicated startup campuses to facilitating academic spinouts, these measures are designed to create a nurturing environment where young entrepreneurs can thrive and scale their businesses.
What sets this framework apart is its grounding in real-world examples. Each of the 50 recommendations is tied to a detailed case study drawn from GEN Atlas, one of the largest compendiums of entrepreneurship policy case studies. This approach provides policymakers with concrete examples of successful interventions, allowing for informed decision-making and adaptation to local contexts.
The Youth Entrepreneurship Framework is more than just a report; it's a call to action. To policymakers, we urge you to analyze your local context using the trends and barriers outlined in the report, identify priority areas for intervention, and adapt the recommendations to your unique ecosystem. To ecosystem builders and support organizations, we challenge you to implement these strategies, fostering an environment where young entrepreneurs can flourish. And to youth, we encourage you to leverage the times when startup communities are in reach where you can form teams, test ideas and lay the groundwork for introducing your idea for solving a problem around you.
In these uncertain economic times, investing in youth entrepreneurship is not just a moral imperative – it's a strategic necessity. It is also smart economics. As history has shown us, periods of economic downturn can be fertile ground for innovation and entrepreneurship. By empowering young entrepreneurs now, we're laying the foundation for the next wave of global innovation and economic growth.
The path forward is clear. By implementing the recommendations in this framework, we can create a world where every young person with a great idea has the opportunity to turn it into a thriving business. In doing so, we're not just building successful companies – we're cultivating a generation of leaders who will shape the future of our global economy.