Johannesburg, 3 November 2015 – Despite a global youth unemployment landscape that can appear statistically bleak, an EY survey on youth entrepreneurship finds optimism is widespread among young people when it comes to fulfilling their career aspirations.
The 2,800 young people surveyed across 13 key markets for EY Job Creation and Youth Entrepreneurship Survey are aged 18-25, and are a combination of students, workers in their first job and those looking for work. They present a positive picture, with 84% of them either quite (45%) or very (39%) optimistic about their achieving their aims.
Optimism peaks in emerging markets, exceeding 90% in Sub-Saharan Africa (97%), Brazil (95%) and Mexico (94%), although the outlook is still bright in many developed countries – reaching 87% in the US. Confidence is lowest in Canada (78%) and Japan (54%).
The survey finds that a resounding 88% of people in Sub-Saharan Africa want to run their own business at some point, with half (50.6%) over 50% of those indicating that they have already started to research their ideas further.
Ajen Sita, CEO at EY Africa says, “The enthusiasm that young Sub-Saharan Africans have for entrepreneurship is hugely encouraging to see. Given that entrepreneurs represent more than 75% of employment in the G20 and rapid-growth economies, and with an estimated 75 million unemployed young people around the world, we must harness this ambition and optimism to create the next generation of entrepreneurs.”
Notably, however, what young people globally with entrepreneurial ambitions most value is guidance and support from today’s entrepreneurs. A ‘hands on’ internship and mentoring from a leading entrepreneur within their field are both seen as the most likely to help them fulfil their goals (39%). It is striking therefore that only 36% say they feel they get enough support from local entrepreneurs, despite 79% of entrepreneurs surveyed globally feeling they do enough to support young people.
Funding is the biggest barrier to success
Young people around the world are very much aware of the challenges they face in forging ahead with their business aspirations. Topping the list of barriers that could prevent young people from fulfilling their ambitions is a lack of access to funding and negative economic factors (both 43%). Other barriers include competition (25%) and lack of self-belief (25%).
Sita says, “Young people need support to make their dreams a reality. As the survey findings indicate, youth don’t just want funding – although it’s crucial – they also need co-ordinated advice, mentoring, support and training.”
Sita adds, “It is essential that business, entrepreneurs and governments form partnerships to support a broader business ecosystem that is supportive of entrepreneurs. This involves a multifaceted approach including investing in the education system, putting the right fiscal and legal policies in place to support entrepreneurship, and empowering women to make a greater contribution to the workplace, and therefore the economy as a whole.”
The future looks bright, but it is only through all stakeholders working together that the next generation of youth will be able to capitalise on the economic opportunities that will arise over the coming decades.”
So what can established entrepreneurs in Sub-Saharan Africa do to help the region’s young people grow into the business leaders of the future?
It is critical that they offer practical support to upcoming entrepreneurs and that they are seen to offer support. Only by being visible will they be able to help their economies to harness the true potential of the next generation of entrepreneurs.
There are a number of ways in which this can be achieved. EY recommends that entrepreneurs:
· Work with local schools /educators to expose more young people to business and explain what it takes to succeed as an entrepreneur;
· Provide more internship/apprenticeship schemes so that budding entrepreneurs can get practical experience on the job;
· Work with governments and non-governmental organisations to develop programs that equip youth with the relevant workplace skills;
· Mentor young people;
· Buy from start-ups that are run by young people;
· Provide guidance and advice to young people on how to enter the workplace;
· Interview and/or recruit a certain percentage of young people who are currently unemployed;
· Offer opportunities for young entrepreneurs to learn by working within their organisation;
· Help young people to get funding; and
· Hold master classes on writing business plans.
