Part 1 of a series written by youth partners of UNDP’s annual Ready Set Great Youth in Development showcase.
Train and nurture marginalized youth to become entrepreneurs
January 5, 2023
By Lanisia Rhoden, Founder/Executive Director of Young Women/Men of Purpose (YWOP/YMOP)
Watch Video at end of article
Thirteen years ago, a significant number of students with bright futures were observed to be facing personal challenges, including teenage pregnancies, school expulsions, very few CSEC subjects and uncertain futures.
As teachers, our jobs transcend the subjects being taught, to spotting negative trends that can disrupt student development while nurturing potential. It means extra time and effort in addressing the barriers, unpacking emotional and psychosocial baggage and amplifying access to opportunities.
Vulnerable young people excluded from the mainstream need special care to ensure they make it in life, even when opportunities are seemingly on the rise and widely available. Vulnerability is especially toxic when youth lack a sense of self and direction. This became the foundation upon which the social enterprise, Young Women of Purpose/Young Men of Purpose (YWOP/YMOP) was established, in order to foster resilience among young people, through career mentoring and guidance including entrepreneurship.
Global studies confirm that entrepreneurship can reduce poverty. One 2020 study found a "positive and significant relationship between entrepreneurial activity and poverty alleviation as measured by changes in the United Nations Development Programme’s (UNDP) Human Development Index in 104 counties studied over 12-year period. This study further found that entrepreneurship can be boosted through the help of facilitators such as government, incubators and financial institutions.
The correlation between entrepreneurship and poverty reduction is corroborated in Jamaica’s National Poverty Reduction Strategy which identifies Livelihood Creation and Income Security as a key thematic area with the goal of “enhancing income security among the poor and vulnerable”.
Youth entrepreneurship can be an option to address unemployment, especially for those who are unemployable and persons with disabilities. In 2021, the youth unemployment rate in Jamaica stood at 26.11 % which is a 0.6% increase over 2020, according to the Statistical Institute of Jamaica.
If we are to successfully tackle this labour force gap, we must equip vulnerable young people to stand resilient against negative forces while helping them discover their strengths and passion.
Many have a natural affinity for doing business, but many others need mentorship, resources and removal of hurdles to their participation.
A major barrier remains inadequate skills and know how to run a business. Many young people want to start their own businesses but have never received any form of training and are unsure as to the first steps to get started.
Those who are operating business also need training to formailise processes and to be equipped for scaling their businesses.
Admittedly, barriers are slowly falling. The Micro Small and Medium Enterprises (MSME) Policy has been updated with abolition of the minimum business tax and raising of the threshold of General Consumption Tax (GCT) to $10 million. Governments remain aware of the critical nature of youth entrepreneurship. In a March 2019 presentation at a National Business Model Competition, Minister of Finance, Nigel Clarke encouraged young Jamaicans especially those leaving tertiary institutions to start their own businesses. “Jamaica will not be able to achieve its potential without persons venturing out, taking a risk, starting a business, providing a service, hiring people, growing and prospering,” he said. (JIS, March 25, 2019).
But the barriers of entry to entrepreneurship are still very high for many potential entrepreneurs across the country.
For example, many young people have never been able to access the capital needed to get started. We need special financing facilities to get a foot through the door. We need business coaches to volunteer time and effort to guide us. Many entrepreneurs have never sat with or spoken with a successful entrepreneur they look up to, for business tips and guidance. Starting a business is like raising a child; it requires a lot of handholding and going through the teething pains until the weaning stage.
Private sector, public sector and social enterprises need to join forces to address these gaps. Innovative financing tools supported through public private partnerships can be created for social enterprises to expand youth mentorship offerings with proven track record.
It will take a collective effort to build the right ecosystem to support and promote youth entrepreneurship across Jamaica. Several organizations are already playing their part towards building this ecosystem. YWOP/YWOP is doing its part through the R.E.A.P. (Realize, Embrace, Achieve your Purpose) Programmes which provide entrepreneurship and business management training, business coaching and mentoring and seed funding. Through these programmes and support, we have witnessed the transformation of the lives of the young entrepreneurs and their families.
Fully convinced that resilient youth can help reduce poverty and build a safer and more secure Jamaica, the United Nations Development Programme’s Youth Summit on Crime and Violence 2021, staged under the UNDP’s Ready Set Great Youth in Development series 2021, issued a 14-point Call to Action to reinforce an inclusive and resilient future for young people.
We reiterate these calls and urge all stakeholders to mobilize disadvantaged youth into to the entrepreneurship ecosystem in Jamaica. This will require work from the ground up. Delegates called for:
1. Strengthening the promotion of youth entrepreneurship as a viable career option and strengthening youth entrepreneurship education in school curricula and relevant clubs and societies.
2. Contribute towards the expansion of business incubator hubs and support existing hubs for young entrepreneurs which provides mentorship and support services for establishing businesses and entry into markets.
3. Engage youth at risk in fostering entrepreneurship ideas by establishing business creation hubs that address community problems with viable business and social enterprise solutions.
4. And contribute toward the strengthening and expansion of cooperation between private and public training programs for youth at risk, emphasizing marketable skills, entrepreneurship, and social skills.
With a collective effort, we can create the Jamaica we dream of where all move forward on a level playing field, fully empowered to collectively attain the Vision 2030 goals.
Lanisia Rhoden is Founder/Executive Director of Young Women/Men of Purpose (YWOP/YMOP). Send feedback to Lanisia.rhoden@ywop.org. This article is part of a series written by youth partners of UNDP’s annual Ready Set Great Youth in Development showcase. Visit www.readysetgreatja.com for more information.
Many young people have never been able to access the capital needed to get started. We need special financing facilities to get a foot through the door. We need business coaches to volunteer time and effort to guide us. Many entrepreneurs have never sat with or spoken with a successful entrepreneur they look up to, for business tips and guidance. Starting a business is like raising a child; it requires a lot of handholding and going through the teething pains until the weaning stage.Lanisia Rhoden, Founder/Executive Director of Young Women/Men of Purpose (YWOP/YMOP)