Africa Unemployed: Can Young Business Owners Help Africa’s Job Market—and Themselves?, Pgs. 6-11
With high rates of unemployment impacting the lives of countless young people in Africa, a growing number of young entrepreneurs are launching their own businesses to support themselves and their families. This source addresses the fact that limited education is one of the underlying causes of unemployment and a significant obstacle for young entrepreneurs. In Sub-Saharan Africa, where the world’s largest population of youth lives, international organizations and companies are investing in youth entrepreneurship and employability through various educational and vocational programs, which has demonstrated a positive impact on young people and their local economies. Youth-led startups are beginning to play an influential role on creating new job opportunities, allowing young people in Africa to gain a foothold in the economy.
Macy, Christy. “Africa Unemployed: Can Young Business Owners Help Africa’s Job Market—and Themselves?” YOUth. No. 5. International Youth Foundation. 2011. Pgs. 6-11. Web. 6 November 2015. <http://www.iyfnet.org/sites/default/files/library/YOUth_Fall11.pdf>.
South Africa’s entrepreneurs tackle youth unemployment crisis
In the face of an unemployment crisis, young people in South Africa are taking the initiative to address it through entrepreneurship. The nation’s staggering 25 percent unemployment rate is worsened by the government’s ineffectiveness and by a weak education system. More than 5 million of the unemployed are young people between the ages of 15 and 24. In response, youth are starting businesses and organizations aiming to help people secure employment. For example, while studying in South Africa, Shikoh Gitau was shocked by the vast unemployment and decided to create a cell phone application that helps people find work. Unemployment is a serious concern, but if young people continue to work towards job creation and security, both will largely impact the future of youth and of their country.
Mbele, Lerato. “South Africa’s entrepreneurs tackle youth unemployment crisis.” BBC News. 21 November 2013. Web. 5 November 2015. <http://www.bbc.com/news/business-25010825>.
Youth entrepreneurship can save Europe
According to this article, “Europeans – old and young – prefer to work as an employee,” rather than start their own business, “often because of the job and income security.” Young people of Europe should consider entrepreneurial alternatives in order to overcome the high rates of youth unemployment, which in 2014 stood at 5.6 million young people who were out of work. Youth entrepreneurship is critical to job creation, since businesses owned by young people grow twice as fast as new companies set up by older entrepreneurs, according to the EU Watcher.
“Youth entrepreneurship can save Europe.” EU Watcher. 13 March 2014. Web. 5 November 2015. <http://www.euwatcher.eu/blog/youth-entrepreneurship-can-save-europe/>.
Young entrepreneurs turn angels for younger startups
Being a part of India’s largest generation of entrepreneurs, young people are turning to angel investing as a means of empowering the next generation of leaders and supporting their creative ventures. Angel investing involves established entrepreneurs who support other young innovators by providing financial backing and valuable mentoring. Through this, angel investors also benefit since they have now invested in potentially lucrative companies that are likely to be the engine that helps local and national economies grow. Through angel investing, these young entrepreneurs are making an even larger contribution to the country’s economic prosperity.
Sharma, Samidha. “Young entrepreneurs turn angels for younger startups.” The Times of India. 30 June 2014. Web. 5 November 2015. <http://timesofindia.indiatimes.com/business/india-business/Young-entrepreneurs-turn-angels-for-younger-startups/articleshow/37492698.cms>.
Usually, young entrepreneurs are the ones pitching. Here, they have the checkbook.
Young entrepreneurs are developing their own start-ups and businesses, and are now using their experience and success to inspire and support even younger generations of entrepreneurs. In this article, author J.D. Harrison from the Washington Post highlights the presence of angel investing in the United States, through groups such as NextGen Angels, “a consortium of young tech financiers in Washington.” Young entrepreneurs who built their own companies can provide essential funding and mentoring to the start-ups in which they choose to invest. As angel investors, young established entrepreneurs are working to ensure that the next generation of leaders have valuable guidance, an opportunity they would have greatly benefitted from when they were new entrepreneurs not too long ago.
Harrison, J.D. “Usually, young entrepreneurs are the ones pitching. Here, they have the checkbook.” Washington Post. 1 May 2015. Web. 5 November 2015. <http://www.washingtonpost.com/news/on-small-business/wp/2015/05/01/usually-young-entrepreneurs-are-the-ones-pitching-here-theyre-holding-the-checkbook/>.
Young people are the Middle East’s biggest asset: former Silicon valley CEO
In the face of soaring unemployment rates, young people in the Middle East have helped create a flourishing “technology entrepreneurship industry.” Rather than depend on government and large companies to reduce unemployment, youth are increasingly creating well paying jobs for themselves and their communities. Moreover, many of these startups make available educational entrepreneurial tools, such as free lecture videos, providing new opportunities for the next generations of Arab youth. As with any nation, access to education is key in order to decrease high unemployment rates and ensure that youth become effective contributors to the workforce and economy.
Khan, Taimur. “Young people are the Middle East’s biggest asset: former Silicon valley CEO.” The National. 25 May 2015. Web. 5 November 2015. <http://www.thenational.ae/world/americas/young-people-are-the-middle-easts-biggest-asset-former-silicon-valley-ceo>.
The Lost Entrepreneurial Generation?
In this article, author Matt Connolly discusses youth entrepreneurship in the United States. Although Millennials are arguably the generation with the greatest entrepreneurial potential, they are launching fewer businesses than the generations before them. Lack of necessary savings coupled with massive amounts of student debt is the driving cause behind the decline in new business creation. According to Connolly, “A market dominated by big businesses has less room for small ones owned by young people,” further worsening the situation for young entrepreneurs. This will have a negative effect on employment in the U.S. because seasoned companies normally create more jobs overseas, while startups could cultivate more jobs domestically. While young people today are at risk of being “America’s lost entrepreneurial generation,” their access to higher education in business development has the potential to make them an entrepreneurial powerhouse.
Connolly, Matt. “The Lost Entrepreneurial Generation?” Washington Monthly. June, July, August 2015. Web. 5 November 2015. <http://www.washingtonmonthly.com/magazine/junejulyaugust_2015/features/the_ lost_entrepreneurial_gener055899.php#>.