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Urban Youth: A Great Source of Untapped Growth

By David South, Development Challenges, South-South Solutions

The world’s growing urbanization means that a whole generation of youth will have a dramatically different life than their parents. The world’s 3.3 billion urbanites now outnumber rural residents for the first time (UNFPA’s State of the World Population 2007 Report). And the vast majority live in slums or periurban areas, places of sprawl, where public services are poor and housing conditions unhealthy. Most young people working in the urban informal sector live in slum areas: for example, 75 per cent in Benin in Africa, and 90 per cent in Burkina Faso, the Central African Republic, Chad and Ethiopia. Most of this work is just bare survival work: according to the International Labour Organization, approximately 85 per cent of all new employment falls into this category.

Getting youth into quality work and earning more than enough simply to survive is critical to building a healthy society. Young people are bombarded every day with good and bad influences, and as UNFPA found in its Youth Supplement: Growing Up Urban, “the interactions with the urban environment can have an intense impact on the socialization of young people, exposing them to a multitude of influences as they develop, experiment, question, and assume roles in their societies.”

It is predicted that over the next 10 years, 1.2 billion youths will enter the working-age population (UNFPA). But youth unemployment is a huge problem around the world. Unemployed young people make up almost half (43.7 per cent) of the world’s total unemployed (UNFPA). Young people aged 15 to 19 are more than three times as likely to be unemployed as adults. Young people are the future, a resource no society can afford to waste. If their innate energy and enthusiasm is tapped, countries can see significant economic growth.

There are youth entrepreneurs who are defying the gloom and coming up with great business ideas. Five finalists for BBC Swahili’s regional entrepreneur competition – Faidika na BBC (Prosper with the BBC) – offer inspiration for youth across the South. Finalists from Burundi, Kenya, Rwanda, Tanzania and Uganda were selected for their bright schemes.

The overall winner was 24-year-old Burundian student Ashura Kisesa for a plan to build commercial public toilets in the cities and towns of East and Central Africa. Ashura, who entered but failed to reach the Faidika na BBC finals last year, has 12 brothers and sisters and is studying for a degree in agronomy at Burundi University.

“I am very happy to win the top prize in this competition,” she told the BBC. “The lack of public toilets throughout East and Central Africa is a major problem that needs to be addressed and I hope to make a difference with my business idea. My whole family wanted me to win and they really supported me which makes me especially proud. I cannot wait to get started with my business.”

On June 26 in Kampala, Uganda, Kisesa was awarded US $5,000 to put towards her business.

Kenyan national winner, 22-year-old Witness Omoga from Kakamega, wants to make identity cards for schools. Right now he works as a volunteer at his uncle’s photo studio, and hopes to get into Makerere University to pursue a degree in computer science. “I am very excited,” he said to the BBC. “I have never been number one in my life, but now I have emerged first in this competition.”

The Rwandan winner is a pioneer in the growing field of biomass energy production. A 17-year-old student from Kigali, Rangira Aime Frederick, impressed the panel of judges with his idea to turn domestic waste into energy. The national winner for Tanzania is a private tutor from Dar es Salaam, Apolinary Joseph Laksh. A business education tutor, 23-year-old Apolinary’s idea is to produce charcoal from recycled materials to offer people in rural areas sustainable and affordable cooking fuel.

Ugandan finalist, 23-year-old Dereick Kajukano, is in his last year at Kampala International University doing a degree in business administration. Dereick’s business idea is to make bags out of plastic trash. He was inspired by last year’s Faidika na BBC winner, David Ssegawa from Uganda: “When I heard him defend his proposal on air, I said to myself, why don’t I do it as well. That’s when it all started, and here I am.”

Published: July 2008

Resources

2008 Global Youth Enterprise Conference: Designed as a participatory learning event, this conference aims to support youth enterprise and entrepreneurship programs and policies achieve greater effectiveness around the world.
Website: www.youthenterpriseconference.org
KickStart is a South African project aimed at inculcating a culture of entrepreneurship among young people between the ages of 18 and 35, by promoting business awareness through training, providing grants as start-up capital and providing mentorship and assistance during the setting up phase of the business.
Website: http://www.sabkickstart.co.za/
iDISC – the infoDev Incubator Support Center – is a virtual networking and knowledge-sharing platform for incubators and technology parks leveraging ICT to facilitate entrepreneurship and new business creation in developing countries.
Website: http://www.idisc.net/en/Index.html
Climate Capital Network: this company offers strategic advice, intelligence and assistance with fundraising for low-carbon solutions around the world. They have 2,000 investors looking for projects to invest in.
Website: http://www.climatecapital.net/
Global Entrepreneurship Week: the website for this event in November has many opportunities for youth entrepreneurs to connect with each other through social networking websites.
Website: http://unleashingideas.org/welcome

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Youth Surge in the South: A Great Business Opportunity

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The world’s youth population (those between the ages of 12 and 24) has now reached a historical high of 1.5 billion – 1.3 billion of whom are in developing countries (World Development Report 2007). Nearly half of the world’s unemployed are youth, and the Middle East and North Africa alone must create 100 million jobs by 2020 to meet demand for work.

Some 130 million people between the ages of 15 and 24 cannot read or write. This enormous cohort of talent and energy in many countries of the South goes untapped. Many youths lack access to quality employment and education opportunities. Yet knowledge of business could make the difference between success and failure for these young people, especially when they come from poor families with few choices. Business is also a great way to help harder-to-reach young people such as child soldiers, young girls, youth affected by HIV/AIDS, gang members, and orphans.

“The youth bulge is happening and it is an enormous opportunity or an enormous challenge: how are all these young people going to have productive and valuable livelihoods and contribute to their communities?,” said Fiona Macauley, founder and president of US-based consulting firm working with entrepreneurs, Making Cents International. “Policy makers are only just realizing they need a change of perspective on health issues, issues of poverty, the education system – all of it needs to respond.”

Micro-entrepreneurship, where risk is low and the amount invested small, offers the most realistic route into business for youth in countries where more formal opportunities are absent. While concepts like micro-credit and social lending have taken off, youth have not received the attention they deserve, according to Macauley. She has also found financial services need to change to encourage youth to save, while also opening up to give them access to credit for micro-entrepreneurship.

To address this problem, Making Cents is organizing a Youth Microenterprise Conference on September 1-12, 2007 in Washington D.C. in order to start building the links and networks between groups working with youth businesses, and to build a global movement for youth economic development. It will tackle three themes: the role of youth, sector strategies, and building partnerships.

“It is important that entrepreneurship is mainstreamed into the school system,” continues Macauley. ”That youth are getting good skills the private sector are looking for: how to budget, costing and pricing, developing entrepreneurial mind sets, problem solving, leading groups, researching, how to be problem solvers. If we can get this into the high school and the elementary school level, imagine how different the workforce would be?”

Other initiatives that are focusing on youth entrepreneurship:

South African Breweries Limited has been providing seed capital to youth businesses run by 18 to 35 year olds through its KickStart program. Successful youth enterprises to come out of the program have included Golden Sunset Fresh Produce, started by 27-year-old Alwyn Jepha to help pay for his law school studies. Starting on a small scale producing vegetables and fruit, the business has grown substantially, making in a month what it once made in a year. The KickStart grant enabled Jepha to buy irrigation equipment and to scale up his operations. At Zanopt, Khetla Leqola has been producing afro-centric optical frame styles, meeting a market need not being met by the global brands. KickStart enabled Leqola to buy the equipment required to produce the frames and run his office.

The Barbados Youth Business Trust has an excellent web portal for youth, with practical tips on starting a youth business and good examples of young people actually doing it. At 29, youth entrepreneur Ailene Harrison-Malcolm found herself unemployed. She had long noticed the lack of clothing for full-bodied women in Barbados, and decided to open her own store, Full Elegance Boutique in 2002. She was able to tap into a mentoring scheme run by the government’s Youth Entrepreneurship Scheme toget a loan. It is this kind of joined up support that youth need.

Published: May 2007

Resources

World Development Report 2007: Development and the Next Generation
World Bank’s Youthink! Website for youth: Click here
The Entrepreneurial League System: Professor Thomas S. Lyons and Gregg A. Lichtenstein have a established an entrepreneurial mentor scheme based on the baseball farm team concept targeting poor communities. Read more about this at Collaborative Strategies.
Students in Free Enterprise (SIFE): A non-profit organization in 40 countries, it organizes students on university campuses to develop community outreach projects that achieve their five goals: market economics, success skills, entrepreneurship, financial literacy, and business ethics.
Young Americas Business Trust; Latin America: Acts as a ‘catalyst for young entrepreneur development in the Americas through business skills training, partnerships, leadership and technology.’
Youth Business International (UK): An international organization providing disadvantaged youth with business mentoring and funds. They helped 2,000 youth in 2006.
UN Youth Employment Gateway: Click here