Can youth entrepreneurship drive sustainable growth?

A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of this journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas approximately six miles from Bequia City in what is termed locally as the “Bequia Channel”. While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind/solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth.In Mexico, Daniel Gomez, a young Mexican engineer runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners – Guillermo Colunga, Antonio Lopez, and Mauricio Pareja – founded SOLBEN (Solution in bio-energy in Spanish) in their early twenties.

Although, Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.

Young people 15 – 29 represent over one-fourth of the world’s total population.On average, they have higher education levels, get married and start families later than their parents’ generations, and are known for having better-than-ever access to, and knowledge of information and communication technologies (ICTs).

In recent years, labor markets in Latin America and the Caribbean have had a steady recovery from the financial crisis of 2008 – 2009. Despite these factors, young people in the age group 15 – 29 face higher levels of unemployment and receive lower wages than the 30-64 age group (UNFPA 2011).  Medium-term projections suggest little improvement in youth labor markets will be seen and by 2016, the youth unemployment rate is projected to remain at the same high level as in the past years.

These realities make Governments and international development agencies look at ways to generate greater economic opportunities for young people. Being entrepreneurship and the creation of innovative, sustainable businesses an ideal avenue for youth employment and occupational activity.

A recently published World Bank study presents findings on entrepreneurial education and training programs leading to positive change.

Can youth entrepreneurship drive sustainable growth?

Many seem to think so, from Government leaders, to academics. Yet, there is a need to connect the dots, close the conversational gap and facilitate dialogue between decision makers and young entrepreneurs. In an effort to do so, the World Bank in collaboration with The Young Americas Business Trust – an international nonprofit that promotes youth development through entrepreneurship and participation – launched a global campaign to amplify the voice of young entrepreneurs. Using social media and virtual platforms, a series of global dialogues will bring them together to discuss three key questions:

– What government programs and policies have been most successful in getting your ideas off the ground?
– What experiences have shaped your entrepreneurial philosophy, what advice would you give others?
– How can young entrepreneurs contribute to growth and shared prosperity in the developing world?

Results of the Global Dialogues provide inputs and lead the conversation to a high-level panel on “Young Entrepreneurs as Drivers of Sustainable Growth”, a flagship event of the World Band and International Monetary Fund Annual Meetings that will take place in Lima, Peru. The event seeks to highlight the power of youth innovation and entrepreneurship as drivers of development and inclusive growth.

Image: Visitors attend Emprende2012 (Launch2012), an annual meeting of entrepreneurs, at the Bilbao Exhibition Center in Barakaldo September 12, 2012. The congress, organized by the Basque regional government, draws together a mix of mainly youths setting up businesses with investors and experts, and features talks, workshops and stands. REUTERS/Vincent West