International Working Group Youth and Incubation A CHANCE FOR A BETTER FUTURE REGIONAL RESEARCH. Challenges for Youth entrepreneurship and incubation

Transcription

1 International Working Group Youth and Incubation A CHANCE FOR A BETTER FUTURE REGIONAL RESEARCH Challenges for Youth entrepreneurship and incubation October 2009

2 International Working Group Youth and Incubation A CHANCE FOR A BETTER FUTURE Regional research Challenges for Youth entrepreneurship and incubation Organizational structure of the working group Youth and Incubation : Research coordinator: Radu BIG, CDIMM Maramures Foundation (BIC Baia Mare), Romania, coordinator of infodev s global working group Youth and Incubation Area Person Organisation Country -Africa Rajeev Aggarwal - ASIA Annuar Mohd Saffar Technology and Business Incubation Facility - TBIF Kulim Hi-Tech Park Rwanda Malaysia - Central Asia Aktan Sapianov Business Incubator DosBI Kyrgyzstan - East &South- East Europe Latin America and Caribbean Radu Ticiu Catalina Escobar - MENA Yousef Ghosheh Timisoara Software Incubation Centre Crea-Me. Incubadora de Empresas Cooperación Internacional Sharek Youth Forum Romania Colombia Palestine October

3 I. Research Methodology The research was conducted from January to June Main goal of the research was to identify needs of and barriers to youth entrepreneurship business incubation could address. The main objectives of the research were as following: - Identifying drivers and barriers in the eco-system for youth entrepreneurship - Identifying strategies and instruments supporting youth entrepreneurship The research area covered Asia, Latin America & the Caribbean, Eastern and South-East Europe, Central Asia, Middle East & North Africa, and Africa. Each of these six areas was facilitated by a regional coordinator. For more details on the regional coordinators, please see table 1. Table no 1. The geographical areas and the coordinators Area Person Organization Country of organization -Africa Rajeev Aggarwal Technology and Business Incubation Facility - TBIF Rwanda - Asia Annuar Mohd Saffar Kulim Hi-Tech Park Malaysia - Central Asia Aktan Sapianov Business Incubator DosBI Kyrgyzstan - East & South- East Europe Radu Ticiu Timisoara Software Incubation Centre Romania Latin America and Caribbean Catalina Escobar Crea-Me. Incubadora de Empresas Cooperación Internacional Colombia - Middle East and North Africa Yousef Ghosheh Sharek Youth Forum Palestine The research was conducted by using standardized questionnaires. The sample included 12 responses from 11 countries (including Ethiopia, Botswana, Rwanda, Colombia, Kyrgyz Republic, Kazakhstan, Romania, Macedonia, Palestine, Jordan, Malaysia). A list of the participating organizations is provided in table 2 below. 3

4 Table 2. Organization participating in the research No Name of the organization Kind of the organization Legal status Country 1 ICTAD Business and Technology Incubation Centre 2 RIPCO Research and Technology organisation Business incubator Public body Public body Ethiopia Africa Botswana Africa 3 TBIF Business Incubator Not-for-profit Rwanda Africa 4 MSC Technology Business Incubator Corporative Malaysia Asia 5 DOSBI Business Incubator Not-for-profit Kyrgyz Republic Central Asia 6 Solnechnyi Business Incubator Not-for-profit Kazakhstan Central Asia 7 UBIT Business Incubator Not-for-profit Romania Europe 8 YES Business Incubator Not-for-profit Macedonia Europe 9 Creame Business Incubator Not-for-profit Colombia Latin America 10 PARC National rural Development 11 QRCE Entrepreneurship Fostering and Innovation Centre NGO NGO Palestine MENA Jordan MENA 12 SHAREK Independent NGO Not-for-profit Palestine MENA In addition, the global working group Youth and Incubation generated good practice case studies, held online discussions with the working group members, organized a break-out session Business Incubation & Youth Entrepreneurs at infodev s Global Forum in Florianopolis (Brazil), October 2009, discussing the opportunities and challenges for youth business incubation. The facilitators of the six regions the survey covered met in Baia Mare (Romania) in July The outcomes of these working group activities in 2009 will be the basis for focusing the activities of the group in 2010 and beyond. Given the small sample size, it is very difficult to generate information on regional differences from this research. Therefore, continuing and extending the research to other countries is one of the main future objectives of the working group. 4

5 II. Summary of Results 1. National policy and governance A majority of 10 organizations out of 12 stated that young entrepreneurs enjoy equal opportunities in comparison to other groups in their countries. 8 organizations stated that specific opportunities for young entrepreneurs aiming to foster youth entrepreneurship exist in their countries. 8 organizations stated that a national strategy on youth entrepreneurship promotion exists in their countries. The majority of these respondents assess these strategies as being medium to very effective. In 9 of the 11 countries covered by the research, national programs such as training, financial support, and business support organizations targeting young entrepreneurs and potential entrepreneurs are in place. Respondents rate their effectiveness as medium. Medium to very effective are the programs of international development organizations. International development organizations operate in 10 of the 11 countries. 2. Main barriers to youth entrepreneurship Main obstacles to youth entrepreneurship identified by the research include the following: o Lack of financing o Lack of experiences in entrepreneurship o Absence of a supportive network and social capital o Lack of information about the opportunities of entrepreneurship among young people o Lack of knowledge about how to start and run a business among young people o Lack of confidence o Lack of appropriate premises o Common local perception that youth should not run their own businesses 3. Strategies to overcome barriers Respondents recommend the following four areas as most relevant for overcoming barriers to youth entrepreneurship: o Financial support programs o Youth entrepreneurship networks and youth role models 5

6 o Legal framework and programs supporting youth entrepreneurship o Capacity building and human resources development Further recommendations include the following: o Ensuring governmental support for youth Entrepreneurs o Ensuring international support for youth Entrepreneurs o Identifying local champions to develop and manage appropriate programs o Sharing of knowledge via a network of experts o Assuring a greater entrepreneurship-oriented component in the national education system 4. Incubator actions The participants of the survey recommend the following areas incubators should focus on when incubating young entrepreneurs: o Ideas/contacts and experience exchange o Expertise in business planning and start-up management o Training in management as well as technical education o Networking o Fundraising o Market Access 6