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GloCha Conference “Sustainable Development, Innovation and Youth” International Association for the Advancement of Innovative Approaches to Global Challenges (IAAI), Klagenfurt, Austria Enterprise Creation and Growth: Sustainable solutions for youth employment Somaya Moll International expert on youth employment Business, Investment and Technology Branch UNIDO 5 & 6 June 2014
Content I. Youth employment challenges and opportunities II. UNIDO approach: Enterprise creation and growth – sustainable solutions for youth employment III. UNIDO projects IV. Success stories V. The way forward: the Post 2015 agenda VI. The Inter-Agency Network on Youth Development (IANYD) VII. The UN System-Wide Action Plan on Youth (Youth-SWAP)
I. Youth employment challenges and opportunities • Over 1.2 billion young people globally between the ages of 15-24. • Young men and women represent 17% of the worlds population and over 40% of the global unemployed labor force • The number of unemployed worldwide rose by 4.2 million in 2012 to over 197 million , a 5.9 per cent unemployment rate in 2013. • Limited capacity of the public sector to absorb the unemployed: the promotion of the private sector can be a solution to unemployment. • Growth of the private sector is crucial to providing more opportunities for productive employment (since globally 9 out of every 10 jobs are created by the private sector).
I. Youth employment challenges and opportunities (2) In many countries generally there is a high potential of resources, for example : • Commodities, energy resources, minerals • Amount of graduated young women and men • Financial resources • Promising sectors and value chains in terms of high potential for growth, export and employment creation, e.g.: – Mali: Cotton, Shea butter, Arabic gum, fruit , meat, sesame, rice, dairy products, solar & hydro energy; – Sri Lanka: IT sector, rubber, electrics & telecommunication, metal & light engineering, textile industry, services sector (finance, management), tourism industry, manufacturing, agriculture (incl. food processing); – Tunisia: Dates, Harissa, olive oil, prickly pears, ICT sector, health care, tourism, construction.
II. UNIDO Approach: Enterprise creation and growth – sustainable solutions for youth employment Purpose: Support young women and men in becoming actors in the socio-economic development of their societies by enhancing the creation of productive and decent work Rationale: • Private sector development is crucial for tackling (youth) unemployment. • UNIDO addresses the issue of (youth) unemployment through entrepreneurship development for disadvantaged target groups such as women and youth. • There is an enormous potential in labour force , by means of the amount of young women and men that are unemployed; • There is often an untapped potential of financial resources to support young entrepreneurs; • In many countries, there is a vast potential with the untapped human resources that could be used for value addition to and production of commodities and raw materials that are now exported and not processed in the country of origin. Technical skills training and investment promotion for these sectors are viable options for tackling the youth unemployment problem. 6
II. UNIDO Approach: Enterprise creation and growth – sustainable solutions for youth employment (cont.) Logic: MSME and value chain MSMEs , incl. youth-led, development strategies create positive externalities : Problem : Youth unemployment and as a solution , addressing they greatly contribute to poverty due to limited absorptive youth unemployment capacity of the public sector and of economic growth , job and promoting domestic creation , structural change the formal labour market . investment , which and innovation . serves as indicator to attract FDI. 7
II. UNIDO Approach: Enterprise creation and growth – sustainable solutions for youth employment (cont.) Different service modules for two types of intervention: Non- 1. Self-employment: financial Financial services services Entrepreneurs • Productive Work for Youth – supporting young Loan, hip and entrepreneurs guarantee, & technical grant schemes training, Integrated approach that assists governments and support coaching & structures to support young women and men to create and counselling develop sustainable enterprises, providing non-financial and financial services. • EDIP Entrepreneurship Development Program: 4 steps tool kits approach for enterprise start-up and growth Capacity building programs on MSME development through UNIDO-ARCEIT partnership, developed in over 35 countries, 65 specialized centers including an e-learning platform • HP LIFE: HP Learning Initiative for Entrepreneurs Objective: empower aspiring and existing entrepreneurs with innovative entrepreneurship and IT skills to facilitate the creation, management and growth of their enterprises Locations: 14 countries in Africa, Asia, Latin America, Middle East 8
II. UNIDO Approach: Enterprise creation and growth – sustainable solutions for youth employment (cont.) 2. Employment: Strengthening and expanding local MSMEs thus creating job opportunities • Mapping of skills required by industry • Vocational Training Centers • Trainings • Clusters: – Upgrading and building sustainable linkages between small-size enterprises, their larger scale business partners and support institutions, SMEs combine their strengths and take advantage of market opportunities or solve common problems with a combined effort 9
III. UNIDO projects • Armenia: Productive work for youth – supporting young entrepreneurs • Tunisia: Productive work for youth: Engaging Tunisian Youth to Achieve the MDGs • Tunisia: Facilitating youth employment through entrepreneurship and enterprise development in vulnerable regions of Tunisia: El Kef, Kairouan, Kasserine and Sidi Bouzid • Sudan: Skills for Peace and Income • Cape Verde: Promoting growth oriented entrepreneurship • Angola: UNIDO Chevron: Supporting the next generation of entrepreneurs UNIDO- Chevron • Mozambique: Investing in a new generation (Entrepreneurship Curriculum Programme)
IV. Success Stories UNIDO-HP Life Programme: Business and IT training for job creation: Tunisia The HP LIFE programme is a global online entrepreneurship training initiative that enables graduate women and men to apply innovative IT and business concepts in order to establish and grow successful businesses, ultimately creating jobs. A key component is the HP LIFE e-Learning platform, which supports young graduate women and men by promoting training in entrepreneurship and enterprise development as well as providing direct assistance to their business start-ups. Partners and Donors: In Tunisia, the UNIDO project promoting youth employment funded by USAID, the Government of Italy and HP , intertwines e-Learning with direct business coaching to assist young female and male entrepreneurs in trans-forming their ideas to bankable business plans. Success Story: Najet Maamouri, 28 years old Results so far: 1,400 young entrepreneurs in the four targeted regions Through the HP Life Programme, (Le Kef, Kairouan, Kasserine and Sidi Bouzid) benefited Najet gained new marketing and from the HP Life training managerial skills that gave her 40% of the trainers, and 45% of the participants are confidence to start her own venture women across all four regions in 2011: a call centre business in Le 400 direct and indirect jobs created Kef which now employs over 20 7,000 entrepreneurs and students in Tunisia accessed people and conducts market research the HP Life online training platform for a growing number of French 150 HP Life entrepreneurs received business counseling companies. She now seeks to use the 65% of participants have either already set up their HP LIFE global online community to own businesses or are in the business set up phase after tap into other international markets receiving training. Local value chains and economic in Switzerland and Belgium. development in general in the region have improved
IV. Success Stories Productive work for youth: Engaging Tunisian Youth to Achieve the MDGs Goal: Employment creation through the creation and development of youth-led enterprises: UNIDO intervention focused on a threefold approach that aimed at reinforcing local support structures (public, private and CSOs), assisting young entrepreneurs to create and develop their enterprises in selected value chains (e.g. handicraft and carpet value-chain), and finally enhancing youth participation and information sharing through a web-based platform. Results so far: • 31 support structures (public, private, and CSOs) trained in enterprise creation and development as well as in “ counseling” young people • 200 youth trained in enterprise creation and development, of which 16 youth in the carpet industry • 3000 youth trained and actively engaged on the Digital Entrepreneurship Platform (www.dep.tn) • Over 100 enterprises created by youth • 900 productive jobs created • 3 studies on “Investment opportunities in the selected regions”, on “Handicraft and carpet value -chain in Gafsa ”, as well as a feasibility study on “Access to finance for youth” • 2 exhibitions of Gafsa carpets in Tunis and Amsterdam
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