Opening the door for entrepreneurship

"At a time when society's biggest issue is youth unemployment, businesses and governments must work together to help young people develop an entrepreneurial mindset. That means fostering a culture which supports young people to take risks, set up businesses, create jobs and become masters of their own destiny. Whether it's through finance, mentoring, incentives or training, we must all play our part so that this generation can achieve its full potential. The time to act is now."
Youth unemployment has reached critical level in most countries and is expected to rise over the next five years, threatening the global economic recovery and raising the spectre of a "lost generation." The International Labour Organisation (ILO) reports that almost 13 per cent of the world's youth - close to 75 million young people - are unemployed and many are also under-employed relative to their training and capabilities. In the worst-hit countries, youth unemployment rates have risen well above 30 per cent. The Economist thinks the real rate is much higher, with an estimated total of almost 290 million young people neither working nor studying. While developing nations suffer from the highest levels of people out of work, youth unemployment figures remain high across most of the globe. Under employment is also a concern with many young people in roles that fail to capitalise on their training or capabilities. Entrepreneurs and SMEs are catalysts of both job creation and economic growth. It is found that SMEs with fewer than 250 employees represented, on average, two-thirds of all the countries employment. These businesses also add jobs at about twice the rate of their larger rivals and are more likely than larger companies to recruit previously unemployed people. Providing young entrepreneurs with the tools and support they need is, therefore, a critical component in tackling the youth unemployment crisis. Greater understanding of the challenges that prevent entrepreneurs from starting and successfully growing their own business should be the initial target for our Government. Across the countries, young entrepreneurs identified four imperatives for action. First is, expand the choice of funding options. Second is increase mentoring and broader support . Third is, change the culture to tolerate failure . The last imperative for action is , target and speed up incentives
Below is an info graph showing the key concerns of young entrepreneurs:
It is no surprise that funding remains the biggest stumbling block for entrepreneurs looking to start their own businesses. Nearly three-quarters (73%) say access to funding remains very or somewhat difficult in their countries. This is especially true for those seeking to develop a new type of product or service, while traditional funding - such as business angles, private equity and venture capital - remains even more limited for the younger entrepreneur. Addressing the funding gap must be a key priority for all nations to support young entrepreneurs and help stimulate job creation.
It is unfortunate that the reliance on personal savings, friends and family in very early-stage ventures means that entrepreneurs from low- income backgrounds are particularly disadvantaged. Young entrepreneurs are demanding more support in finding funding through non-traditional methods, such as crowd funding. It is seen that almost one in two (49%) think improved access to funding through new innovative platforms will have the greatest impact on accelerating entrepreneurship over the next few years globally. This is especially noticeable for female entrepreneurs, with a greater proportion calling for strong improvements in access to both crowd funding and microfinance. However, any such funding needs to be backed up with wider support and mentorship.
Providing financial support alone will not be enough to enable young entrepreneurs to fulfill their potential and serve as an engine of job creation; it may be wasted without additional resources. It is seen that 88 per cent of entrepreneurs with mentors survive in business, compared with a 50 per cent failure rate for those without this support. Younger entrepreneurs are also more likely to depend on a broader range of support mechanisms than their older peers. There is a pressing need to provide these growing businesses with a stronger support ecosystem: with business incubators especially, but also mentors, start-up programmes, entrepreneurs' clubs and associations. The creation of clusters or technology hubs should be considered to bring together all the disparate but essential components and players. It is obvious that younger entrepreneurs need more of this broad-based support. They have limited experience in running businesses and fewer opportunities to build useful networks with peers and mentors. Unless young entrepreneurs get extra help, their efforts may not succeed even if they are able to attract funding. The public must change their perception of start-ups and be more aware of the contributions they make to the broader economy. Having a supportive entrepreneurial culture that embraces SMEs will have a positive effect on their future growth. This can be done in a number of ways.
Governments need to promote entrepreneurs as crucial job creators. In fact, 50 per cent of young entrepreneurs think this will have a high impact in supporting entrepreneurship in all countries over the next three years. Society in general also needs to be more tolerant of failure and recognize entrepreneurs as men and women who provide innovative products.  At a time when youth unemployment is reaching crisis levels, schools and universities can also help as students look to make career choices. Young entrepreneurs highlight the need for success stories and role models; 51 per cent of respondents believe government support for education, funding and profile-raising for entrepreneurs will have a significant impact on perception.
One consistent difference between younger and older entrepreneurs is that the new generation expects more support from governments. Young entrepreneurs report an urgent need for government- backed initiatives across areas such as funding, support services and education. Governments also need to recognize differences between the needs of male and female entrepreneurs. For example, our survey shows that young men are far more likely to prioritize education- related initiatives and tax breaks, while young women focus more on grants and business incubators.
Young entrepreneurs are the main fuel for the global economies to surpass recession and again face a quick recovery.
"Youth unemployment is now a ticking bomb for all governments, both from developed countries and emerging countries. In the 21st century, the jobs we need to create will come neither from the big corporations nor from government, but they will come mainly from entrepreneurs"
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