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GloCha Conference

“Sustainable Development, Innovation and Youth”

International Association for the Advancement of Innovative Approaches to Global Challenges (IAAI), Klagenfurt, Austria

Enterprise Creation and Growth:

Sustainable solutions for youth employment

Somaya Moll

International expert on youth employment

Business, Investment and Technology Branch UNIDO

5 & 6 June 2014

Content

I. Youth employment challenges and opportunities II. UNIDO approach: Enterprise creation and growth – sustainable solutions for youth employment III. UNIDO projects IV. Success stories V. The way forward: the Post 2015 agenda VI. The Inter-Agency Network on Youth Development (IANYD)

• VII. The UN System-Wide Action Plan on Youth (Youth-SWAP)

• Over 1.2 billion young people globally

between the ages of 15-24.

• Young men and women represent 17% of

the worlds population and over 40% of the global unemployed labor force

• The number of unemployed worldwide

rose by 4.2 million in 2012 to over 197 million, a 5.9 per cent unemployment rate in 2013.

• Limited capacity of the public sector to

absorb the unemployed: the promotion

• f the private sector can be a solution to

unemployment.

• Growth of the private sector is crucial to

providing more opportunities for productive employment (since globally 9

• ut of every 10 jobs are created by the

private sector).

• I. Youth employment challenges and opportunities

In many countries generally there is a high potential of resources, for example:

• Commodities, energy resources, minerals
• Amount of graduated young women and men
• Financial resources
• Promising sectors and value chains in terms of high potential for growth, export and

employment creation, e.g.: – Mali: Cotton, Shea butter, Arabic gum, fruit , meat, sesame, rice, dairy products, solar & hydro energy; – Sri Lanka: IT sector, rubber, electrics & telecommunication, metal & light engineering, textile industry, services sector (finance, management), tourism industry, manufacturing, agriculture (incl. food processing); – Tunisia: Dates, Harissa, olive oil, prickly pears, ICT sector, health care, tourism, construction.

• I. Youth employment challenges and opportunities (2)

• II. UNIDO Approach: Enterprise creation and growth –

sustainable solutions for youth employment

Purpose:

 Support young women and men in becoming actors in the socio-economic development of their societies by enhancing the creation of productive and decent work

Rationale:

• Private sector development is crucial for tackling (youth) unemployment.
• UNIDO addresses the issue of (youth) unemployment through entrepreneurship

development for disadvantaged target groups such as women and youth.

• There is an enormous potential in labour force, by means of the amount of young women

and men that are unemployed;

• There is often an untapped potential of financial resources to support young entrepreneurs;
• In many countries, there is a vast potential with the untapped human resources that could

be used for value addition to and production of commodities and raw materials that are now exported and not processed in the country of origin. Technical skills training and investment promotion for these sectors are viable options for tackling the youth unemployment problem.

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• II. UNIDO Approach: Enterprise creation and growth –

sustainable solutions for youth employment (cont.)

Problem: Youth unemployment and poverty due to limited absorptive capacity of the public sector and of the formal labour market. MSMEs, incl. youth-led, create positive externalities: they greatly contribute to economic growth, job creation, structural change and innovation. MSME and value chain development strategies as a solution, addressing youth unemployment and promoting domestic investment, which serves as indicator to attract FDI.

Logic:

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• II. UNIDO Approach: Enterprise creation and growth –

sustainable solutions for youth employment (cont.)

Different service modules for two types of intervention:

• 1. Self-employment:
• Productive Work for Youth – supporting young

entrepreneurs

Integrated approach that assists governments and support structures to support young women and men to create and develop sustainable enterprises, providing non-financial and financial services.

• EDIP Entrepreneurship Development Program: 4 steps tool kits approach for enterprise

start-up and growth Capacity building programs on MSME development through UNIDO-ARCEIT partnership, developed in over

35 countries, 65 specialized centers including an e-learning platform

• HP LIFE: HP Learning Initiative for Entrepreneurs

Objective: empower aspiring and existing entrepreneurs with innovative entrepreneurship and IT skills to facilitate the creation, management and growth of their enterprises Locations: 14 countries in Africa, Asia, Latin America, Middle East

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Financial services

Loan, guarantee, & grant schemes

Non- financial services

Entrepreneurs hip and technical training, coaching & counselling

• II. UNIDO Approach: Enterprise creation and growth –

sustainable solutions for youth employment (cont.)

• 2. Employment:

 Strengthening and expanding local MSMEs thus creating job opportunities

• Mapping of skills required by industry
• Vocational Training Centers
• Trainings
• Clusters:

– Upgrading and building sustainable linkages between small-size enterprises, their larger scale business partners and support institutions,  SMEs combine their strengths and take advantage of market opportunities or solve common problems with a combined effort

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• III. UNIDO projects
• Armenia: Productive work for youth – supporting young entrepreneurs
• Tunisia: Productive work for youth: Engaging Tunisian Youth to Achieve the MDGs
• Tunisia: Facilitating youth employment through entrepreneurship and enterprise

development in vulnerable regions of Tunisia: El Kef, Kairouan, Kasserine and Sidi Bouzid

• Sudan: Skills for Peace and Income
• Cape Verde: Promoting growth oriented entrepreneurship
• Angola: UNIDO Chevron: Supporting the next generation of entrepreneurs UNIDO-

Chevron

• Mozambique: Investing in a new generation (Entrepreneurship Curriculum

Programme)

UNIDO-HP Life Programme: Business and IT training for job creation: Tunisia

The HP LIFE programme is a global online entrepreneurship training initiative that enables graduate women and men to apply innovative IT and business concepts in order to establish and grow successful businesses, ultimately creating

• jobs. A key component is the HP LIFE e-Learning platform, which supports young graduate women and men by

promoting training in entrepreneurship and enterprise development as well as providing direct assistance to their business start-ups. Partners and Donors: In Tunisia, the UNIDO project promoting youth employment funded by USAID, the Government of Italy and HP, intertwines e-Learning with direct business coaching to assist young female and male entrepreneurs in trans-forming their ideas to bankable business plans.

Results so far:

• 1,400 young entrepreneurs in the four targeted regions

(Le Kef, Kairouan, Kasserine and Sidi Bouzid) benefited from the HP Life training

• 40% of the trainers, and 45% of the participants are

women across all four regions

• 400 direct and indirect jobs created
• 7,000 entrepreneurs and students in Tunisia accessed

the HP Life online training platform

• 150 HP Life entrepreneurs received business counseling
• 65% of participants have either already set up their
• wn businesses or are in the business set up phase after

receiving training. Local value chains and economic development in general in the region have improved

Success Story: Najet Maamouri, 28 years old

Through the HP Life Programme, Najet gained new marketing and managerial skills that gave her confidence to start her own venture in 2011: a call centre business in Le Kef which now employs over 20 people and conducts market research for a growing number of French

• companies. She now seeks to use the

HP LIFE global online community to tap into other international markets in Switzerland and Belgium.

• IV. Success Stories

• IV. Success Stories

Productive work for youth: Engaging Tunisian Youth to Achieve the MDGs

Goal: Employment creation through the creation and development of youth-led enterprises: UNIDO intervention focused on a threefold approach that aimed at reinforcing local support structures (public, private and CSOs), assisting young entrepreneurs to create and develop their enterprises in selected value chains (e.g. handicraft and carpet value-chain), and finally enhancing youth participation and information sharing through a web-based platform. Results so far:

• 31 support structures (public, private, and CSOs) trained in

enterprise creation and development as well as in “ counseling” young people

• 200 youth trained in enterprise creation and development, of

which 16 youth in the carpet industry

• 3000 youth trained and actively engaged on the Digital

Entrepreneurship Platform (www.dep.tn)

• Over 100 enterprises created by youth
• 900 productive jobs created
• 3 studies on “Investment opportunities in the selected regions”,
• n “Handicraft and carpet value-chain in Gafsa”, as well as a

feasibility study on “Access to finance for youth”

• 2 exhibitions of Gafsa carpets in Tunis and Amsterdam

• IV. Success Stories

Productive work for youth in Armenia – supporting young entrepreneurs 2013-2015.

With the financial support of the Government of Austria, and together with the Armenian counterpart institutions, the UNIDO project supports youth-led enterprise creation and expansion. To this end, the Programme will partner with the SME Development National Center (SME-DNC) for the provision of financial and non- financial services to young entrepreneurs aged 18 to 35 years, who are the project’s main beneficiaries (special attention will be paid to young families and young women). The strategy foresees the following main activities:

• Awareness raising on youth employment issues
• Support for the development of a conducive business environment for young entrepreneurs
• Facilitating access to finance

Targets after 24 rounds of training and calls for proposals as per ProDoc Targets after 5 rounds of training and calls for proposals Results after 5 rounds of training and calls for proposals Achievements/targets reached 300 potential & existing young entrepreneurs, 50% female, receive entrepreneurship training.

• 60 trainees
• 180 training applicants, 38%

female

• 83 trainees, 41% female
• Trainees: 138%

80 potential & existing young entrepreneurs receive access to funding via the youth business revolving fund and pay back their loans. 55 of them will continue to grow, thus creating jobs for young people.

• 16 loans granted
• Repayment: too early in

project cycle.

• 52 loan applications, 40%

female

• 35 loans initially

approved/granted (31%) female

• 8 loans actually disbursed,
• Total of approved loans

€153,650

• Granted/approved loans:

219%

• Repayment: Too early in

project cycle, however there have been no delays so far and overall projections are solid.

• V. The way forward: The post 2015 agenda

The Secretary-General’s High-Level Panel of Eminent Persons on the Post-2015 Development Agenda Report: A new Global Partnership Strong focus on youth:  “Young people must be subjects, not objects, of the post-2015 development agenda Transformative Shift 3: Transform economies for jobs & inclusive growth 4 priorities: 1. Create opportunities for good and decent jobs and secure livelihoods. 2. Strive to add value and raise productivity, so that growth begets more growth. 3. Countries must put in place a stable environment that enables business to flourish. 4. Growth will also need to usher in new ways to support sustainable consumption and production, and enable sustainable development.

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• VI. Inter-Agency Network on Youth Development (IANYD)

The UN Inter-Agency Network on youth Development (IANYD) was created by the SG in 2010 and consists of UN entities, whose work is relevant to youth. In particular, the Network:

• Provides a forum for cooperation and support;
• Provides an opportunity for on-going exchange of information on the UN system’s work on

youth development, including through knowledge management initiatives and tools;

• Strengthens and supports cooperation to promote youth development, through joint

advocacy, initiatives and other forms of cooperation;

• Draws on the members’ networks and relationships with governments, youth-led and youth-

focused organizations, donor agencies, civil society organizations, multilateral organisations and others, to advance youth development;

• Facilitates and supports youth involvement and participation in the UN System and its

programmes or initiatives at all levels In the framework of the World Programme of Action for Youth (WPAY) and its 15 priority areas, IANYD advocates for, supports and reviews progress on the implementation of UN Resolutions, Conventions and the internationally agreed development goals that are youth-related.

• VI. Inter-Agency Network on Youth Development (IANYD)

In short:

• IANYD ensures the implementations of the Youth SWAP
• IANYD ensures that youth issues are included in the post-2015 agenda. Eg: through

crowdsourcing forum

• UNIDO is co-chair this year, which means they are largely responsible for ensuring

these 2 things

• UNIDO also is developing a strategy with public-private partnership

• VI. Inter-Agency Network on Youth Development (IANYD)

UNIDO’s role

• UNIDO this year is Co-chair of IANYD at an important time when the millennium

development goals (MDGs) transition into a new vision of sustainable development goals for the coming decades.

• As co-chair of IANYD, UNIDO will have the opportunity to promote its strategic vision of

“Inclusive and Sustainable Industrial Development” (ISID) in the context of the Post-2015 development framework. ISID means that no one is left behind in benefiting from industrial growth, and prosperity is shared among all parts of society in all countries.

• UNIDO, represented by BIT/ITU, has been an active member of the IANYD from its genesis

and has contributed greatly to shaping the network in its present form, constantly participating in all Annual Meetings, and taking part in the IANYD subgroups relevant to UNIDO mandate on: Youth participation; Employment; Environment/Rio+20; Youth participation in peace building; Communication; Post 2015.

• UNIDO this year is also a leading entity for the sub-working group on youth employment

and entrepreneurship. UNIDO has recognized the importance of mainstreaming its projects with the aim of improving the livelihood of young people. UNIDO will also work to bolster and coordinate the work of IANYD in order to support and provide assistance to youth networks and young people globally.

• VII. The UN System-Wide Action Plan on Youth (Youth-

SWAP)

On 25 January 2012, the UN Secretary-General outlined his Five-year Action Agenda, which called on the UN to address the needs of young people around the world. In response to this and the requests of Member States, the IANYD developed a System-wide Action Plan on Youth.

• The Youth-SWAP provides
• an opportunity to harness the strengths of the UN system in the area of youth

development and

• to promote joint programmatic work on the issue. It provides strategic guidance to the

UN system as a whole in its work on youth within the framework of the World Programme of Action for Youth.

• The Youth-SWAP focuses on the following thematic areas:
• Employment;
• entrepreneurship;
• political inclusion;
• civic engagement and protection of rights;
• education, including comprehensive sexuality education;
• health.

• VII. The UN System-Wide Action Plan on Youth (Youth-

SWAP)

• The System-wide Action Plan on Youth has been endorsed by the United Nations System

Chief Executives Board for Coordination at its spring session on 5-6 April 2013. The Inter- Agency Network on Youth Development has developed an implementation framework for the Youth-SWAP, and several regional inter-agency networks have already started the process of developing regional implementation plans for the Youth-SWAP.

• The implementation of the System Wide Action Plan and the dialogue among all relevant

stakeholders (UN, Governments, Civil Society, Youth groups and Private Sector) is crucial, and places the IANYD in a particularly important position in the discussions around new policies and initiatives concerning youth globally, as well as in the post-2015 development agenda. The implementation of the SWAP on a global, regional and national level is of instrumental importance for the UN System, as stressed by the recognition given to its implementation by the Secretary General Ban Ki-moon and by the UN General Assembly.

For more information

http://www.unido.org/en/what-we-do/poverty-reduction-through- productive-activities/business-investment-and-technology- services/investment-and-technology.html ituyouth@unido.org

Thank you