RURAL ENTREPRENEURSHIP AND YOUTH - farmer-to …farmer-to-farmer.org/.../files/resource/...youth_entrepreneurship.pdf · Entrepreneurship can help empower youth, ... ONE FACTOR FOR

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RURAL ENTREPRENEURSHIP

AND YOUTH

Empowering youth to generate and sustain improved livelihoods for themselves, their families and communities

U.S. GOVERNMENT PARTNERS

PARTNER LOGO GOES HERE (click slide master to add)

WHY TARGET YOUTH? The poorest of the poor are disproportionately young. Future entrepreneur!

Young people globally are three times more likely to be unemployed than older adults.

By 2050 Africa’s population will double to 2 billion; rural youth will increase from 136 to 265 million (aged 15-24) and then continue growing as a share of total population.

Rural youth in other regions will decline proportionally but remain a huge challenge in parts of Asia and Latin America.


WHY IS AGRICULTURE KEY FOR YOUTH?

Because …..

•  Agricultural growth reduces poverty more effectively than other sectors.

•  A one percent increase in agricultural per capita GDP has been shown to reduce the poverty gap five times more than a one percent increase in GDP derived from other sectors, and does it most effectively among the poorest people.*

*Christiansen, Demery and Kuhl, The Evolving Role of Agriculture in Poverty Reduction: an Empirical Perspective (2011).


WHY FOCUS ON ENTREPRENEURSHIP?

Formal sector employment cannot absorb the majority of youth in developing countries. In Uganda, for example, 400,000 enter the labor force annually but less than 20% find work in the formal sector. Half of Ugandans are under 15 so labor force expansion will continue to outpace formal sector absorptive capacity.

In Sub-Sahara Africa (SSA) the rural population will be 53% higher in 2050 compared to 2015 (UN 2016).

Entrepreneurship can help empower youth, and improve non-formal sector livelihoods and farm productivity.


WHAT IS USAID’S YOUTH IN DEVELOPMENT POLICY?

The 2012 policy defines youth as those aged 10-29 and states that :

1.  “Development can be accelerated when the majority of youth … are able to make significant contributions to … [society]

2.  Youth should be supported, protected, prepared and engaged… by broadening sector approaches to strengthen youth development systems, and

3.   Missions should mainstream youth across portfolios, … [apply] intentional youth development … & strategically reorient … activities to improve prospects for … youth.


WHAT IS USAID’S YOUTH POLICY IMPLEMENTATION FRAMEWORK ?

The framework is referred to as Positive Youth Development (PYD). The USAID “Youth Power Learning Team” has defined 4 PYD “domains”:

•  Assets: skills, competencies and resources – cognitive, normative, social and behavioral

•  Agency: the ability to leverage assets •  Contribution: participation and leadership; and •  Enabling environment: social, institutional and

physical


HOW IS PYD SUPPORTED BY USAID?

The YouthPower IDIQ Mechanism ($445 million) supports USAID’s Youth in Development Policy.

Ø  The Evidence and Evaluation IDIQ (COR Laurie Rushton) Ø  The Implementation IDIQ (COR Elizabeth Berard)

Youth Communities of Practice (via YouthPower) operate for 1) cross-sectoral skills; 2) youth engagement, 3) gender and PYD, and 4) youth in peace and security.

See: www.youthpower.org.


RURAL ENTREPRENEURSHIP


THE CONTEXT •  Most youth are already economically active •  Most activities are linked to household livelihood

strategies on and off-farm •  Household members talk to each other often about

younger household members’ livelihood options •  The socio-cultural context must be considered while

recognizing that societies are not static.


THE CONTEXT

•  Some youth must balance work with education •  Livelihood programming should be market driven and

build on existing assets •  Youth are diverse and youth targeting needs to be

tailored to specific conditions and by gender. •  Livelihood (income) is the core driver of PYD, but …. * USAID Youth Livelihoods program guide, 6/08


FOUNDATIONAL SKILLS ARE ESSENTIAL FOR SUSTAINABLE LIVELIHOODS

•  Entrepreneurship skills (financial, marketing, management, etc.) are necessary but not sufficient since motivation, integrity, ability to delay gratification, social networking, etc. also play a vital role.

•  USAID’s PYD framework focuses on “foundational” skills. Building these along with business skills helps ensure sustainability of entrepreneurial initiatives and livelihoods. (See handouts)

•  Better outcomes from a holistic skills approach often leads to better health, education, public safety and stronger civic engagement.


BASIC EDUCATION IS A KEY VARIABLE FOR SUCCESSFUL

ENTREPRENEURSHIP •  USAID’s early grade reading

focus is building a vital foundation for future rural entrepreneurs (as well as everything else!)

•  Literate and numerate youth are able to learn technical, business and management skills more rapidly.

•  Several studies have shown more education is especially important for females entering business.


ENTREPRENEURSHIP SKILLS ARE, OF COURSE, JUST ONE FACTOR FOR ENTERPRISE SUCCESS

Consider entrepreneurship initiatives and options in the context of:

•  Land and land tenure •  Access to affordable capital •  Infrastructure (roads/energy/etc.) •  Access to affordable inputs (seeds,

fertilizer, equipment, labor, etc.) •  Access to markets •  A favorable policy environment •  A stable and predictable political and

economic context (taxes, corruption etc.) But also ensure scope for:


INNOVATION AND ADAPTABILITY •  What new products can be created? •  What new technologies can improve

productivity? •  How can digital technology make

rural enterprises more profitable? •  How can rural entrepreneurs make

their businesses more resilient to economic and environmental shocks?

•  How can rural entrepreneurs gain refresher and continuing skills training to boost their businesses?

•  How can rural entrepreneurs find new partners and markets?

And ensure:


DEMAND-DRIVEN ENTREPRENEURSHIP

•  Demand refers both to markets and to youth preferences

•  Sort-term, tailored, flexible, on-the-job training that meets “just in time” needs can often be more effective in rural environments than formal-sector business skills training

•  Coaching and mentoring seem to be key to retention, application and development of entrepreneurship skills

•  Not everyone can or wants to be an entrepreneur, so ensure that those being trained actually want to use what they are learning.


ENTREPRENEURSHIP SKILLS ARE PORTABLE

Many rural youth supplement their farm or off-farm incomes with urban informal sector activities.

This is a rational coping strategy that can increase livelihoods.

The goal is to increase sustainable livelihoods and not necessarily to keep youth in rural areas so rural-rural and rural-urban mobility are rational coping strategies facilitated by entrepreneurship training.


FTF IS RAMPING UP ITS YOUTH ENGAGEMENT AND

ENTREPRENEURSHIP FOCUS


YOUTH LEADERSHIP FOR AGRICULTURE IN UGANDA

•  Key project assumption: livelihood development requires human, social, financial and physical capital.

•  Focus:: human (skills, knowledge, attitudes) and social (networks, mentors, role models) capital

•  Objective: “multiply training and networking via non-formal & formal methods … increase economic opportunities … for youth (10-35) in agriculture-related fields” via “entrepreneurship, leadership and workforce readiness, [thereby] increasing incomes.”


SOUTH SUDAN FARM II* PROJECT Key project assumption: “Shifting from youth-neutral to youth-aware initiatives requires ‘safe spaces’ where youth can be trained in life and entrepreneurial skills directly linked to farming activities that interest them.”

Focus: New horticulture & animal husbandry VCs

Objective: Raise incomes in Equatoria states via “youth-inclusive agric. markets & entrepreneurship training for production, processing, storage, transport & marketing. *FARM II: Food, Agribusiness and Rural Markets: Engaging Youth in Agriculture


KENYA: YES YOUTH CAN! (& OTHERS)

Key Program assumption: Kenya is “a center for innovation and entrepreneurship;” FTF is “investing in entrepreneurship to increase agriculture VC productivity, using technology to transform subsistence agriculture into commercial operations.”

Focus: Integrated approach - community mobilization, civic engagement, economic development and gender integration Objective: strengthen youth organizations as community change agents by empowering youth and their organizations to achieve a national policy greater voice by improving livelihoods via rural entrepreneurship (farmers and off-farm).


THE EXPERTS ARE IN THIS ROOM

What could Feed the Future do differently or do more of to achieve better outcomes for youth-led enterprises, for youth livelihoods and food security?

Do research gaps exist that, if addressed, could help to optimize and sustain youth engagement and promote entrepreneurship in rural on and off-farm enterprises?

How can F2F have greater impact on entrepreneurship development?


YOUR RESPONSES

www.feedthefuture.gov


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RURAL ENTREPRENEURSHIP AND YOUTH - farmer-to …farmer-to-farmer.org/.../files/resource/...youth_entrepreneurship.pdf · Entrepreneurship can help empower youth, ... ONE FACTOR FOR