YOUTH ENTREPRENEURSHIP

Why we are needed Youth unemployment is a big issue in today’s world. A high percentage of young people are not in education or employment, and many leave school without the skills they need to succeed in the real world. There are several reasons why young people decide at a certain moment in their lives to start their own business. Some discover a good business opportunity while others feel challenged by various problems. They may have an education and the right set of skills but find it difficult to gain employment. The lack of jobs among young adult poses serious consequences in their health, wellbeing, and future. Hence, one of the ways to get young people into the labor market is through youth entrepreneurship. Not only does it provide employment prospects to inexperienced youths, but it has an impact on economic growth through new jobs, increased competition, and innovation. About 36% of the worlds unemployed population are young people, with over 169 million young people earning less than $2 per day. The problem is even greater among the Black, Asian, and Minority Ethnic (BAME). Between October and December 2020, 41.6% of black people aged 16-24 were unemployed – the highest rate since the last financial crisis. Taken into consideration the impact Covid-19 has had on unemployment rates across the world, there is a need for young adults to get involved with entrepreneurial activities.

Youth entrepreneurship provides an innovative solution to improve economic growth among young adults. However, young entrepreneurs especially members of BAME face significant barriers that make it hard to start businesses. A study from The Department for Business, Energy and Industrial Strategy (DBEIS) found that only 5% of the UK’s small and medium-sized businesses are ethnic minority-led. Some of the barriers that make it difficult to start a business includes:

  • Absence of prior work and entrepreneurship experience which makes it difficult to create a start-up and could affect entrepreneurship performance

  • Education and training programmes mostly do not help nurture entrepreneurial mindset, skills, and attitude.

  • Lack of awareness of potential for entrepreneurship among role models results in a lack of encouragement or even negative social attitudes.

  • Limited network relationships and social capital have consequences for business start-up and obtaining legitimacy.

  • Difficulty in obtaining external finance hampers business start-up.

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In developing coaching, mentoring, and training sessions for young entrepreneurs, it is necessary to develop programmes that fit the current context of youths in the economy and society. Our training programmes would focus on developing the entrepreneurial mindset of young people. How people view themselves and the world around them impacts their ability to dream and achieve. The fast-paced modern-day economy, where needs and opportunities are evolving rapidly and more fluidly than it has ever been before in history, young people need a mindset that enables to spot opportunities, take initiative, and constantly innovate when challenges arise. An entrepreneurial mindset can be categorized as skills that enable individuals identify and take advantage of opportunities, succeed in various situations and overcoming setbacks. Various research has shown that an entrepreneurial mindset is crucial for creating businesses and boosting performance.

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Below are the skills which help to form an entrepreneurial mindset. We plan to grow and nurture these skills with our youth entrepreneurs.

 

  • Critical Thinking & Problem Solving: This involves the capacity to apply high-level, process-oriented thinking, analyse a problem from multiple perspectives, and using that reason to solve a problem or make a decision.

  • Communication & Collaboration: This involves clearly expressing opinions and ideas to an intended audience which includes persuading others to collaborate towards a goal

  • Comfortable with Risk: The capability to take a decision despite inevitable challenges or uncertainty.

  • Creativity and Innovation: The ability to analyse ideas, innovate and provide solutions to issues without defined structures

  • Recognizing Opportunity: The habit of viewing and experiencing problems as opportunities to provide solutions.

  • Adaptability and Flexibility: The willingness and capacity to change plans and take actions to overcome various challenges.

  • Future Orientation: Possessing an optimistic disposition with the aim of obtaining the knowledge and skill to transition into a career or developing disruptive innovations.

  • Self-reliance & Taking Initiative: Possessing the ability to take ownership or control of a project without support or guidance together with navigation obstacles independently.