CEEC Bulletin
ISSUE 6 11 MARCH 2009
Youth Empowerment
“Partnership for National Development”
Despite
the rhetoric that the youths are the future of any country, the youths remain one of the most marginalized and disempowered groups in many parts of the world. They are often excluded from decision-making processes and they have limited opportunities to engage in gainful e m p l o y m e n t . There is diversity in the definition of ‘youth’ around the world. Some cultural traditions, as in Zimbabwe, define youth from the age range of 10 or 11 years, and in Zambia and South Africa the range goes up to 35 years. More generally, the age range is considered between 12 and 25 years, which may be narrowed to 15-24 years. The Citizens’ Economic Empowerment Commission is committed to supporting and building the capacity of young men and women in Zambia to fight economic exclusion and enhance Youth empowerment. Youth empowerment is an attitudinal, structural, and cultural process whereby young people gain the ability, authority, and agency to make decisions and implement change in their own lives and the lives of other people, including youth and adults. In this bulletin, we give a ‘voice’ and an ’ear’ to the Youth in commemoration of Youth Day which falls on 12 March. We held an in-
terview with Commissioner Nyoni, who implores CEEC staff to be supportive of one another in order to build a future for our country……What better message in support of this years Youth Day theme “Partnership for National Development” . Is there hope for Zambia’s Youths in the face of so many challenges? What is the Young Men’s Christian Associations' (YMCA) perspective? Read YMCA’s opinion about the various youth challenges facing youth and the way forward for the Youth?
This bulletin also captures youth situation Data. Data on the youth situation in the sub-region is either lacking or outdated in most countries. Many of countries have not been carrying out regular and frequent surveys to collect data, and those that have done so have only just began separating or highlighting youth data. Lessons are drawn from a study on youth entrepreneurship issues from a recent study carried out in South Africa. A Case study of Youth Entrepreneurship issues from Jamaica is also presented. These are highlights of the major items..but read on: On Youth Day and beyond, reflect on how you could make a difference IN the world.
“ Even the youths shall faint and be weary, and the young men shall utterly fall: but they that wait upon the Lord shall renew their strength. “ Isaiah 40:30-31.
FEATURE - Exclusive Interview with Ms Prisca Nyoni, (Above) CEEC Commissioner representing Youth
CEEC Bulletin Citizens Economic Empowerment Commission
EXCLUSIVE INTERVIEW – MRS. PRISCA NYONI, CEEC COMMISSIONER, REPRESENTING YOUTH
ISSUE 6 ——- PG 2 11 MARCH 2009
Q: Who is Ms. Prisca Nyoni? A: I was born in 1979 on the Copperbelt where my father was working in the mines. I spent most of my childhood on the Copperbelt and came to Lusaka in my teen years. I am a journalist by profession. Basically a journalist who has spent most of her career life working in children and rights organizations and not practicing journalism that much since 2002. I am married, to a very wonderful and supportive husband, Kelvin who has helped me achieve a lot of things that I have attempted to do. Q: I have heard that you are involved in a number of Youth initiatives. Please tell us about some of these and the roles that you have played? Yes, like I mentioned above, I have been working in organizations that promote children and youth rights. I worked for a Youth run organization called Youth Media. While at Youth Media I had a privilege to be appointed as a youth representative on the National Youth Week Organising Committee. I served on this committee for 2 years. In this committee, the role I played was to contribute to the formulation of the national programme for youth week, contribute to the youth speech and also help with the coordination of activities during youth week. After this, I was appointed as one of the four youths selected to be part of a team that was reviewing the 1994 national youth policy. Reviewing the youth policy was a challenging task. We had to travel to all provinces to collect the views of the youth and other stakeholders and later on, we had to draft the policy. Then later on, I was appointed as a board member of the National Youth Development Council. Am glad to say that our board managed to revive the Council. When we were appointed, the council was almost dead. We brought it back to its feet although I should also mention that it is still facing a lot of challenges.
“ I believe we are passed the stage where any Income Generating Activity for young people would be tailoring, carpentry and so on. Young people should engage in most, exciting and innovative forms of activities whether in rural, urban areas or the informal sector” P. Nyoni
CONTINUED FROM PG 2……
—PG 3
Q: Thank you for that set of answers. We will now move into youth empowerment issues. One of the biggest concerns and challenges to youth lending is the issue of collateral. What alternative ap‐ proaches in Zambia or beyond have been successful as an alternative to tangible collateral for youth? A. As we all know the issue of collateral which is in form of assets, for many young people in Zambia is a challenge. A lot of young people do not own an assets which could be used as collateral as they try to access funds. Young have conceived great business ideas and once they try to source funding, they are unable to access any funds as they do not have collateral. For CEEC and other lending institutions whose aim is to empower people including the youth, there is need to use other forms of collateral such as group and community collateral. In case of situations where the young people want to purchase equipment or any other assets for their business, the purchased items could be used as collateral. These three forms of collateral have worked in several funding initiatives in Zambia and other countries. Q: Microcredit schemes for youth need features to help ensure success in terms of the operating principles for a youth employment strategy. Many existing schemes have been focused on assisting the poor working in the informal sector and hence are concerned primarily with economic survival. In rural areas, the focus is often on helping young people to start up micro-enterprises as a way of supplementing subsistence farming with cash income. In Urban areas, the focus is often on activities that will keep participants within the informal sector, with no bridges or links to growth sectors in the global economy. Most of these approaches have been rigid and non innovative. In view of such block fenced un innovative approaches, what innovative income-generating activities would be the best for the Zambian youth in say, Rural areas, Urban areas and the informal sector. A: It is not very easy to specify what income generating activities would be best for the young people in the different settings you have given but what I would say is that the best income generating activity for any young people is one that is ideal to their location. A youth based in North Western province for example would do well focusing on an IGA which would utilize local resources, or will attract local demand and it has to be something that will not just be for economic survival but able to contribute to the national economy. I believe we are passed the stage where any IGA for young people would be tailoring, carpentry and so on. Young people should engage in most, exciting and innovative forms of activities whether in rural, urban areas or the informal sector.
CEEC Bulletin Continued from PG 3….
EXCLUSIVE INTERVIEW – MS. PRISCA NYONI, CEEC COMMISSIONER, REPRESENTING YOUTH
ISSUE 6——- PG 4 11 MARCH 2009
Q: The Zambian Youth do not only represent the future hope of this great country but also cover around 65% of the Zambian population. Though the Zambian youth represent the largest percentage of the country’s population, at least 70% percent of them are unemployed. What recommendations would you give to address the concerns of youth empowerment? A: There is need for the government through the Ministry of Sport, Youth and Child Development and other stakeholders to develop a strategy to combat youth unemployment. As we may be aware, our education curriculum does not focus on developing Zambians who can manage to work on their own but people who have to work for someone. This is dangerous has it has lead to the high unemployment levels because when someone is not employed, then they cannot do anything. The issue of empowerment should be key to this strategy. The mindset of the youth in Zambia also needs to be changed. Young people should be empowerment not only with finances but with skills to help them become entrepreneurs. Those that can make it can further create employment for their fellow youths. The strategy should also include systems that will compel employers to offer training to their young employees. Big firms or businesses in the country should also be compelled to support through sponsorship the youth to attain tertiary and university education that is relevant. Q: In most countries of the world, National Youth Development is often the sole responsibility of the Government Ministry or Department where the youth portfolio lies, whereas youth issues should be mainstreamed across various sectors and line ministries such as health, finance, economic development, housing, justice, foreign affairs, education and agriculture. How are youth represented in terms of policy and project stages in various sectors to ensure there are specific projects addressing youth in Zambia? A: I would say that currently, mainstreaming of youth in terms of policy and project is not very prominent. A lot of policies and programmes in government line ministries are silent on youth. Young people are lumped with the rest of population making it had to see how the ministries are addressing the youth development agenda.
“ A lot of policies and programmes in government line ministries are silent on youth. Young people are lumped with the rest of population making it had to see how the ministries are addressing the youth development agenda.”
CONTINUED FROM PG 4
— PG 5
Q: What have been some of the challenges of ensuring that the youth participate and have an impact into all the stages of projects that affect them? A: The major challenges are as follows. Adult’s negative attitude towards young people. There are adults out there who just think young people don’t know anything and need to be taught and lectured to at all times. This is very annoying for most of us young people. Its also because of lack of adequate information among young people. Its sad to note that a lot of young people are very ignorant about many things that are key to their development. Its also due to lack of an education that helps young people develop their self esteem. Our education system is too academic.
Q: The Bemba People of Northern Zambia have a wise saying which says: “Imiti ikula e mpanga” liter‐ ary meaning small trees make a forest. A forest without shrubs has no future, so it could mean that a nation which does not invest in its future ‐ the Youth will not develop [have a future]. The issue at hand for Zambian policy makers and youth alike is therefore not whether youth entre‐ pre‐neurship should be supported but rather how, if Zambia has to develop. Although a positive base exists, more should be done in an accelerated manner to address national challenges and to form a basis from which Zambia youth will be able to be self employed and manage sustainable lives. As we approach Youth Day, which will be celebrated on the 12th March 2009, under the theme “Partnership for National Development”, what advice would you give us [CEEC staff] to truly ensure that collectively we could one day make a forest? A: My word to CEEC members of staff is that first begin by looking at yourself. As a young person, what have you achieved? How have you responded to the needs of other young people around you? Have you been supportive to your fellow shrubs so that together you will form a great forest? And for the other members of staff, I would like to ask you, Are you cutting the small trees in the forest or helping them to grow. When your days are over, will these small trees fit your shoes and carry the vision of CEEC and Zambia ahead?
CEEC Bulletin Continued from PG 5
EXCLUSIVE INTERVIEW – MRS. PRISCA NYONI, CEEC COMMISSIONER, REPRESENTING YOUTH
ISSUE 6 ——- PG 6 11 MARCH 2009
Q. Finally Ms. Nyoni, May you describe the experience you have had as a CEEC Commissioner? What have been the highlights and what would you have done differently. Are there any milestones that you would wish to share and are proud of? A: Well, we are now in our last year as Commissioners. I would first of all say, it has been a great challenging time of service for the nation. Being a Commissioner has helped me understand what service is. I have learnt to work and think for others. I have also gained a lot of knowledge from the other members of the Commission who are much older and more experienced then me. Am proud of the fact that now, we have management up and running. When we started it was just us and when we began planning and working, it seemed like we would never arrive one day but here we are God has been merciful. Am also happy to see Zambians out there getting the long awaited CEEF, especially the young people. Thank you so much for your time and the rich responses to these questions.
“ As we may be aware, our education curriculum does not focus on developing Zambians who can manage to work on their own but people who have to work for someone. This is dangerous….” P. Nyoni
ISSUE 6
CEEC Bulletin
11 MARCH 2009
Citizens Economic Empowerment Commission
Youth Challenges, What’s the Way Forward for the Youths? A Perspective from Young Men's Christian Association— By Choolwe Haamujompa
After 44 years of Zambia’s independence, the country has since experienced a
RESOURCE
number of challenges befalling the youth. These problems have certainly rocked the youths of all times and ages .Some of the critical problems are attributed to lack of equal and adequate employment opportunities, the devastating impact of HIV and AIDS, increasing Poverty levels and indeed lack of access and opportunities to real issues concerning their welfare such as education, health, recreation and in a nutshell poor representation in leadership and political spheres. It is quite evident though that over the past decades, there has been a precedented decline on education standards, health, recreation and entrepreneurship. Youth development has not been adequately addressed and given the right attention it deserves. A reflection on the unemployment statistics for the youth which are over 50% are horrifying. Even if the country may be going through economic turmoil’s, it is evident that there is need to have the Political will to solve and address the problems of the youth.
Joining Forces for Young People: A Practial Guide to Collaboration with Youth People. Produced
Now with the global economic crisis, what does this entail for the youths? In the recent past, we have seen a number of people losing employment especially in the mining sector. In addition, the global economic crisis will leave our youths with limited opportunities to get employment. We need to therefore focus our energy and priorities. This can only be done through innovative approaches that will put income in the hands of our Zambian people. We need to see more production and inter linkages in industry that will keep our economy running and as well keep jobs. Some of the key problems affecting the youth have to do with the colonial education system inherited. In contemporary Africa, the school has become the primary means of preparing young people for the future. However, our education system indicates that the last few decades have witnessed disintegration in public schools in terms of quality, infrastructure, and teacher/student morale. . The formal education only prepares the mindsets of the youth to look forward to white collar employment and not to self employment through entrepreneurship. There is need therefore to change the educational curriculum and bring in one that will develop the children holistically and prepare them for both formal employment and self employment. This is important in line with ensuring that young people are not left to be vulnerable.
by
the
Youth
Consultative Group, in partnership with the YEN secretariate, this guide for youth acts to facilitate and motivate young peoples’ participation ment
in
youth
employ-
policymaking.
This
guide is part of ongoing efforts
to
systemise
the
substantive and meaningful engagement of young people in the development and implementation
of
youth
employment strategies.
Continued from Page 4….Youth Challenges, What’s the Way
This can only be supported with a conducive policy environment that favours the youths in terms of job creation and wealth generation. Regarding skills development and entrepreneurship, the current scenario is that there inadequate Micro Finance Institutions that are willing to invest capital in the hands of the youths due to a number of reasons such as lack of collateral and experience. There is need to intensify programmes and develop institutions that promote youth development. The government must then think of putting interventions that promote Micro and Macro finance and empowerment programmes for the youth. The Government in this regard has a moral Socio and Economic obligation to create and provide these opportunities for the youth. This obligation must seen in the light of championing economic social and cultural rights to which the youth are advocating for the realization of self empowerment. As a nation, an employment led growth strategy is required to address the problems of widespread poverty and unemployment in Zambia. This requires that there should be a strong link between employment policies, social development needs, education and human development for the youth. It is imperative that youth employment should embrace all comprehensive national development programmes. In the recent past we have seen the devastating impact of HIV and AIDs. This epidemic has certainly affected a number of youths in a myriad of ways. Firstly, we have the productive sector of the economy to which our youths contribute. In addition, we have seen how vulnerable children have become. This has led to the emergence of child headed households in a number of communities. This problem continues to grow and poverty levels are fueling. In addition, we now see the continued decay in morals amongst our youths. Vices such as high alcohol consumption, drug and substance abuse are the order of the day. This is further exerbated due to lack of either employment and recreational facilities that can keep young people busy. These factors have certainly fueled HIV/AIDs infection rates. This is also due to the poverty levels currently being experienced. We now see the burden of treatment, care and support in relation to relating to HIV and AIDs. The youth have not been spared from this epidemic. The call for more prevention efforts relating to HIV and AIDs is certainly a high priority agenda for both the government and civil society. In essence, intensifying HIV/ AIDs prevention efforts for the youths will help stop the tap from leaking. While a number of people are already infected with HIV and AIDs, we need to keep the level of new infections at the barest minimum in order to contain the fight against HIV and AIDs.
“ The call for more prevention efforts relating to HIV and AIDs is certainly a high priority agenda for both the government and civil society. In essence, intensifying HIV/ AIDs prevention efforts for the youths will help stop the tap from leaking. While a number of people are already infected with HIV and AIDs, we need to keep the level of new infections at the barest minimum in order to contain the fight against HIV and AIDs”
ISSUE 6
CEEC Bulletin
11 MARCH 2009
Continued from Page 5….Youth Challenges, What ’ s the Way Forward for the Youths?
The growing level of poverty amongst the youths is a serious concern. This is further evidenced by youths who are out of employment currently using unorthodox means of survival by selling anything they can put their hands on such as plastic products, puppies and bananas between speeding vehicles which has led to their loss of life in some cases. As a nation, are we proud to have an entire generation of young leaders dashing in between moving vehicles as a means of survival? Certainly we need to look at the plight of the youths more seriously with concerted efforts aimed at bringing dignity to our young people. There is need to have strong poverty alleviation and impact mitigation programmes that will help our young people. The modern world as well has come with its own challenges. In as much as we appreciate the technological advances currently being experienced, there is still a big gap between the urban rural areas. This technological transfer is not happening at a pace that should empower our young people. This is evidenced by lack of access to technological facilities such as the internet and computers. Our education system must therefore aim to equip our youths with technological skills that will enable young people adapt to the information age coupled with ICTs. This is still a challenge amongst a number of youths. The Young Means Christian Association would like to see real changes that transform a child to an adult that takes account of an empowerment approach. Government must then take the lead to do such. There is need to promote youth empowerment to instill a sense of responsibility among the youth to take up meaningfull control of their lives. In conclusion , we need to see more innovative approaches that will firstly improve access to youth credit. In addition, we need to see efforts being made in providing business development services to the youth through the promotion of large scale youth entrepreneurship projects. Lastly, as a nation and as a matter of public policy, there is need to promote labour intensive public works. It is important that there is need to promote public labour based methods of infrastructure development that will put income in the hands of the youths who have neither jobs nor formal education. This will need a strong political will orchestrated by those in key political decision making positions.
“ as a nation and as a matter of public policy, there is need to promote labour intensive public works. It is important that there is need to promote public labour based methods of infrastructure development that will put income in the hands of the youths who have neither jobs nor formal education. “
International Youth Foundation (IYF) Seeks Dynamic Young People Leading Social Change There’s a lot of talk about the problems facing our world today, but it takes a special person to find a solution and put it into action – a social entrepreneur. The International Youth Foundation (IYF) is in search of 20 young social entrepreneurs from around the world for its YouthActionNet® Global Fellowship Program. Sponsored by Nokia, the YouthActionNet® Global Fellowship Program recognizes young social innovators for their outstanding achievements. Past winners have undertaken a range of special projects, including: providing low-cost, solar lighting to rural families in Nicaragua; using mobile phone technology to combat pharmaceutical fraud in Africa; and employing low-income women in the Philippines to transform discarded fabric into fashionable accessories. Profiles of the 2008 Global Fellows can be viewed at: www.youthactionnet.org The Global Fellowship is open to qualified candidates between 18 and 29 years old. Applicants must be proficient in English and have founded existing projects or organizations with a clear vision for social change. This can include leading a new project within an existing organization. Winners will be announced on August 1, 2009. The yearlong Fellowship includes:
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An all-expense-paid trip in November 2009 to attend the YouthActionNet® Global Fellowship Retreat that enables the 20 youth leaders to share best practices and learn from each other;
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Recognition for their efforts at the Annual YouthActionNet® Global Awards Ceremony;
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Networking with leading international nongovernmental organizations, development agencies, and donor institutions; and Virtual learning sessions, as well as access to global advocacy platforms, media coverage, and funding opportunities. The deadline for applications is April 15, 2009. Application information is available at: www.youthactionnet.org.
ISSUE 6
CEEC Bulletin
11 MARCH 2009
Youth Entrepreneurship: Tool for productivity LESSONS FROM JAMAICA
Jamaica has long demonstrated a distinct propensity for high levels of entrepreneurship. The most recently published ‘Global Entrepreneurship Monitor Report’ (GEM) has classified Jamaica as having one of the highest levels of entrepreneurial activity in the world. The report said 17 per cent of the country’s adult population were actively planning or had recently established a new business. Jamaica’s overall rate of entrepreneurial activity compares favorably with New Zealand, who in 2005 was considered among “the world’s most entrepreneurial countries”. It is still early days, we should be able to translate early stage entrepreneurship into established business activity. This is significant as the data would seem to suggest that Jamaica; although having a high incidence of early stage entrepreneurial activity, does not have a good enough record in transforming this into established business ownership.
Even as the crucial role, played by entrepreneurship in driving economic development and job creation, is increasingly understood, there has not been commensurate effort placed on looking at entrepreneurship from a youth perspective. There are too few employers and hence too few job opportunities in the world. However it is a fact that cumbersome procedures and regulations hamper the start-up of new businesses. Jamaica has been affected by this paradigm, and as a result, has had to review, rethink and reorient its legal and institutional framework for business to make it easier for its citizens to start and run their own enterprises. The major difficulty still seems to be the lack of access to start-up financing or seed funding. As young people often have neither business experience nor any valuable assets they are viewed as too risky investments by commercial or self-sustaining sources of finance. The majority of business start-ups are therefore funded from informal sources such as family or personal contacts. But even these sources of financing are often unavailable to young people, particularly to those coming from disadvantaged backgrounds.
“ The report said 17 per cent of the country’s adult population were actively planning or had recently established a new business. Jamaica’s overall rate of entrepreneurial activity compares favorably with New Zealand, who in 2005 was considered among “the world’s most entrepreneurial countries”.
RESOURCES Over the years there have been number of programmes initiated, mainly thorough family support, churches and non government organisations. There are various agencies are helping youth to set up and run their businesses. The National Centre for Youth Development The National Centre for Youth Development, the youth division of the Ministry of Information, Culture, Youth and Sports has continued to empower Jamaican youth in the areas of leadership and entrepreneurship. The Centre has initiated programmes to engage both attached and unattached youth to build their capacity to lead, to make rational decisions, and to contribute meaningfully to the country. One of the mechanisms through which this is achieved, is the provision of access to information through the establishment of Youth Information Centres across the island and the provision of officers who work with these youth in obtaining information on employment and training opportunities: These officers also facilitate the formation and strengthening of youth clubs. The National Youth Council and Youth Clubs The National Youth Council (NYC) supports youth clubs through the development of income generating projects for youths. Through these projects, young people earn income while sharpening their leadership skills. Jamaica has approximately 400 youth clubs which provide a source of empowerment and encouragement to a number of unattached youth. These organisations have ventured into inner city communities with their youth development programmes, and have reaped relatively good success. The Jamaica Youth Ambassadors Programme The Jamaica Youth Ambassadors’ Programme (JAYAP) programme allows youth to become ambassadors to advocate for their peers at the national and international level. The youth ambassadors are expected to be people in whom other young people can feel proud and draw inspiration from their work The full participation of young people in decision making at all levels is encouraged. Jamaica’s young people have continued to represent the country across the world. The National Youth Service The National Youth Service (NYS) programme was established in 1973 and was intended to re-socialise youth in the age group 17 - 29 to an alternative to crime and violence, even while providing for them opportunities to be re-engaged as positive members of society. As its mandate, the NYS continues to focus on the increasing antisocial behaviour and poor attitudes among Jamaican youth, the general lack of economic opportunities and the deficiencies in their exposure to relevant training and education.
ISSUE 6
CEEC Bulletin
11 MARCH 2009
Citizens Economic Empowerment Commission
The
Young
Entrepreneurs
Association
of
Jamaica
The Young Entrepreneurs Association of Jamaica (YEA), formed in January 2006 provides a platform for young entrepreneurs across Jamaica to network and expand growth options for their business. The comprehensive approach to promoting entrepreneurship must work on three levels - individual, firm and society. Firstly, to motivate young people to become entrepreneurs, they should be made aware of the concept of ‘entrepreneurship’, and this should be made a sufficiently attractive option. They should be equipped with the right skills to turn ambitions into successful ventures. Secondly, for entrepreneurial ventures to develop into healthy firms, supportive framework conditions are essential. These should allow firms to develop and grow, and not unduly contract and exit. Entrepreneurial activity depends on a positive appreciation of entrepreneurs in society. Entrepreneurial success should be valued and the stigma of failure reduced. ATTITUDE Building an entrepreneurial society involves everyone. Attitudes towards entrepreneurial initiative, and failure, must be made more positive. To appreciate entrepreneurship, society must value and celebrate successful entrepreneurs and tolerate failure. Finally, the promotion of Entrepreneurship among our youth requires a coordinated approach because of its horizontal nature. Policy development should therefore embrace all the influential elements within the relevant policy areas, to allow them to act in a mutually reinforcing way. Source: Global Entrepreneurship Monitor Report’ (GEM ), December 2008.
“ Firstly, to motivate young people to become entrepreneurs, they should be made aware of the concept of ‘entrepreneurship’, and this should be made a sufficiently attractive option. They should be equipped with the right skills to turn ambitions into successful ventures.”
ISSUE 6 ——- PG 14
CEEC Bulletin
11 MARCH 2009
Citizens Economic Empowerment Commission
UCT study shows youth entrepreneurship improving but still room for improvement The latest Global Entrepreneurship Monitor (GEM) study, conducted by the UCT Centre for Innovation and Entrepreneurship (CIE), based at the UCT Graduate School of Business, has found that more South African youth are developing the confidence and potential to become entrepreneurship superstars. The key findings show that the youth (categorised as those in the age categories of 18-24 years and 25-34 years) have a positive attitude towards opportunity-oriented business activities and a willingness to work with others towards achieving their objectives. According to Dr Mike Herrington, Director of the UCT CIE and research team leader of GEM South Africa since 2001, the window of opportunity is open and ready for accelerated youth entrepreneurship development. “The youth constitutes the majority percentage of the population and their importance in the current and future environment cannot be underestimated. With creative energy and willingness from South Africa’s key players, youth entrepreneurship development can be accelerated to bring renewed socio-economic growth in South Africa,” he said. The latest GEM report, said Herrington, is an analysis of GEM study findings to date rather than a participation in the latest annual round of the global entrepreneurship assessment and rankings. However, new research was conducted in Gauteng, the Western Cape and KwaZulu-Natal, which have been identified as South Africa’s main entrepreneurship hubs, in order to obtain a deeper understanding of the trends amongst youth in these areas. In the analysis of these regions, the researchers identified six trends which point to the youth as being capable of generating much-needed socioeconomic growth in South Africa. The first of these trends shows that more youth are opportunity seizers as against those starting a business because they have no other option.
“ The key findings show that the youth (categorised as those in the age categories of 18-24 years and 25-34 years) have a positive attitude towards opportunityoriented business activities and a willingness to work with others towards achieving their objectives.”
The analysis focused on the Total Early-Stage Entrepreneurial Activity (TEA) rates – the primary measure of entrepreneurship used by GEM – of youth from 2004 to 2006 and shows the youth age group 25-35 years had the highest TEA rate of all the age groups researched in two of the three years surveyed, showing an increasing trend of opportunity orientation (meaning they want to be entrepreneurs because of an opportunity they see rather than because they have no choice). Secondly, more female entrepreneurs are entering the market – youth male entrepreneurs exceed youth female entrepreneurs in 2004 and 2005 but are equal in percentages in 2006. This is in line with international trends in the growth of women entrepreneurs. Thirdly, an increase in the total number of students completing secondary school could be a positive trend which, if they acquire the correct skills set, can eventually form a sound basis for more accelerated TEA activities among youth. However, the quality of education will need to be carefully monitored to ensure that the youth are being taught the correct skills to enable them to be job creators. In terms of secondary training completed, in the age group 18-24 years the percentage of respondents who had completed secondary education increased from 30.6% to 43.7% from 2004 to 2006, and in the age group 25-35 this went up from 37.4% to 48% over the same period. In terms of tertiary graduation the age category 25-34 years showed a positive although small trend as well – the percentage of respondents who are graduates increased from 0.9% in 2005 to 2.6% in 2006. “In an environment characterised by high levels of innovation, technological change and increased global competitiveness, education plays a major role. Higher levels of education are needed to compete in such an environment,” commented Herrington. Fourthly, in addition to strong positive education trends for youth, the youth also believe that they have the right knowledge and skills to create new businesses. In both the youth age categories the positive trend is evident between 2005 and 2006. In the 18-24 years group, the percentage that believed in their abilities rose from 36.9% to 37.6%, and in the 25-34 years age group, an increase was seen from 44.0% to 47.1%. Aligned to this, it was found that “Fear of Failure” as a criteria for preventing young people from considering starting new businesses has decreased in significance. Fifthly, the respondents felt that a culture for entrepreneurship is being created in South Africa. In the 1824 group, 38.0% of respondents in 2006 feel strongly that a culture of entrepreneurship is being created in South Africa. This is mirrored by a strong 41.8% in the 25-34 age group. These strong sentiments are largely consistent over the three years 2004 – 2006. Finally, there is a positive mindset among youth regarding the possible creation of new jobs in the future.
ISSUE 6——- PG 17
CEEC Bulletin
11 MARCH 2009
UCT study shows youth entrepreneurship improving but still room for improvement—from pg 15 “This is a crucial mindset for sustainable entrepreneurship and to add value to the socio-economic growth development of South Africa,” said Herrington. There are however a few worrying issues that need to be addressed. For example, there are social problems among the youth in South Africa such as drug abuse and unemployment. What is of concern is that in an age of entrepreneurship the impression amongst the youth is that entrepreneurship is for someone else or that the government will provide a job. Innovation is very important in any knowledge-driven environment. If a country wants to become a leader then this is critical. Youth in the age categories 18 – 24 years and 25 – 34 years are clearly using less and less technology over the period 2004 to 2006. The same trend prevails regarding whether their products can be regarded as new. The question is why people are afraid to come up with new ideas. Are they afraid or are they not supported if they do come up with a new idea? Finally, research shows that many of the early stage businesses started by the youth are doing the same thing. This could indicate a negative trend regarding perceptions on innovation which can manifest in negative consequences for the economy over the long term if not properly addressed. “The issue is therefore not whether youth entrepreneurship should be supported but rather how. Although a positive base exists, more should be done in an accelerated manner to address national challenges and to form a basis from which South Africa will be able to compete on an international level with developed countries,” said Herrington. Areas that government policy could focus on that are likely to have positive spin-offs with regards to accelerating entrepreneurial development include: education and training; exposing youth entrepreneurs to different market conditions and support in identifying modern, cutting-edge business ideas; and providing support services needed to help them to develop the ideas. A national support system should be developed, addressing the specific needs of youth entrepreneurs and focussing on the constraints that are unique to y o u t h b u s i n e s s e s . The 2007 South African GEM study was sponsored by South African Breweries, Standard Bank of South Africa, the Western Cape Youth Commission and the National Research Foundation
“ Innovation is very important in any knowledge-driven environment. If a country wants to become a leader then this is critical.”
NEWS FROM THE ARCHIVES…..
CEEC Educates youth leaders
. Zambian youth are not traditionally part of the decision making processes. But this is about to change. The Youth Association of Zambia is now educating youth leaders on how to access government funds. By Ian Mwiinga, 24. August 2008 The Youth Association of Zambia held its first ever workshop for Youth Leaders at the Commonwealth Youth Programme Centre in Lusaka in August, 2008. The workshop was convened in order to sensitize the youth leaders in Zambia on the operations of the Citizens Economic Empowerment Commission (CEEC) and the funding guidelines for the Citizens Economic Empowerment Fund (CEEF). During the workshop, youth leaders had an opportunity to know how they can benefit from the Youth Empowerment Fund which is being administered by the CEEC. In her presentation by Mrs. Mable Mung’omba, who is the first Executive Director of the CEEC, stated that the Economic empowerment of citizens has been an integral part of the Zambian economy since 1968 through the Mulungushi reforms and the Zambianisation programme, which were implemented to broaden the participation of citizens in the economy. She explained that “the Citizens Economic Empowerment Fund was established under the Citizens Economic Empowerment Act to support the development of broad based economic empowerment programmes.” She further explained that the youths constitute an integral part of a group of people who are targeted under the CEEC. The other groups of people that are targeted under the CEE Act are Women, disabled people, and people living with HIV and AIDS. Speaking during the workshop, the Youth Association of Zambia Executive Director, Mr. Evans Musonda urged the youth leaders to share the information with other youths in their respective provinces. Mr. Musonda further stated that “I hope this workshop will help in clarifying the current misinformation about the administration of the Fund and the application guidelines.” The current misinformation about the application procedure has resulted in some youths applying to the Ministry of Sport, Youth and Child Development for funding instead of applying to the CEEC who are the current managers of the Fund. The Workshop was graced by Mr. Sikazwe, the current chairperson of the Citizens Economic Empowerment Commission. A total of 30 participants drawn from all the nine provinces of Zambia attended the workshop. It is not easy for youth organisations to access funding from government in Zambia. The CEEC requires individuals and organisations to do the following in order to access the funds. Youths should establish collective enterprise in order to reduce the perceived risk of lending to them. This will increase their capacity to borrow on more favourable terms. Youths must register their enterprise with the Registrar of Companies or Registrar of Societies. Youths should affiliate their group, enterprise or company to a business association to benefit and share their experiences with already established business people in their region. Youths must develop a business plan or proposal for submission for funding. Youths must fill in the application form which must be submitted with the business plan to the Business A s s o c i a t i o n o f t h e D i s t r i c t C E E C O f f i c e . IF YOU HAVE UPCOMING YOUTH PROGRAMMES TO SHARE, PLEASE FORWARD THEM TO: lumbap@ceec.org.zm