Why We Need Youth Social Entrepreneurship

Recap: What is YSE? 

Youth social entrepreneurship is about bringing young people into the economic sphere and having them experience what it means to make executive decisions, work as a team, and take risks to solve a social problem.

YSE’s mission is to show that young people can design products, make investments, and even start social ventures in the name of doing good for their communities.

In this article, however, I will be focusing on the many benefits of YSE, both for the individual and the larger economy.

Youth Social Entrepreneurship

PART TWO | By Sylvie S.

Why We Need

Section 1: Economic Benefits

Youth social entrepreneurs often create small firms. While these companies can be risky and fluctuate,  they typically create the most new jobs.

Creates Jobs

1

Introducing business techniques and generating market interest at a young age is fundamental for preserving the economic spark of a society.

Stimulates Economic Growth

3

Small corporations have historically created game-changing inventions like the airplane, PC, and FM radio. These products may eventually be picked up by larger companies and distributed to consumers. This is a symbiotic relationship that is key for a flourishing economy.

Life-changing Products

2

13%

30%

Male

Female

The proportion of young people worldwide not in employment, education or training (the youth NEET rate)

# of new jobs already created by social enterprises in Australia (2017)

200,000

# of new jobs needed over the next 15 years to support the growing youth population

# of people who socioeconomically benefited from social enterprises in 9 countries in Central Asia & Europe (2016)

600 M

871 M

Section 2: Developmental Benefits



TAKE RISKS



FINANCIAL SKILLS



LEADERSHIP



COOPERATION



BUSINESS STRATEGY



SALESMANSHIP

What important life skills can YSE teach us?

What can these skills help us to become?

Even though the high-school dropout rate has dropped over the past decade, we are still seeing a lack of preparedness among high-school students both in terms of higher education and the traditional workforce. We’ve also seen a significant gap in the number of kids who say they want to attend college and those who actually do.

Unfortunately, youth preparedness for the workforce is fairly abysmal. Most students do not leave high school with the requisite skills to be successful in the larger economy. Data from the UN World Youth Report also suggests that there is a strong negative correlation between a country’s ease of doing business and its youth NEET rate (Willem Naudé based on data from ILO and the World Bank ease of doing business index 2017). This essentially means that not providing youth with educational or job opportunities can have serious negative consequences on the ease with which the country is able to conduct business. This makes sense, as how much time and resources could be saved if youth entered the workforce already armed with basic marketable skills?

1. MOTIVATED TO STAY IN SCHOOL

 3. PREPARED FOR THE WORKF0RCE

52.7%

42.9%

Youth labour force participation as a share of the total youth population

2000

2018

26%

ACT-tested graduates who are likely to have the foundational work-readiness needed for more than 9/10 jobs profiled in the ACT JobPro database (ACT 2018)

74%

34%

% of students who felt engaged in the classroom

5th Grade

11th Grade

% of students who aspired to attend college (2018 ACT)

66%

% of students who actually enrolled in college

82%

Although there are certainly many factors contributing to this, one of the ones that stands out the most to me is a lack of motivation and interest in subject matter among teens. Perhaps if more time was spent focused on career skills that could be applied in the real world, students would not feel like so much of their work is pointless. 

graduation rate of students concentrated in CTE programs

80%

average national freshman graduation rate

93%

91%

% of high school graduates who earned 2-3 CTE credits that enrolled in college

This might include things like Career and Technical Education (CTE) programs, where middle school and high school students are able to learn skills directly associated with real-world jobs. Instead of the usual theory-based curriculum, each CTE track focuses on learning and applying your skills through hands-on practice. 

Business is one of many CTE tracks that students can take. This will give you work experience and even certain certifications before you even start your career.  Overall, CTE classes have be shown to have a significant positive outcome on students. 

What all of these statistics show is that in order for the global economy to be successful, the world must invest more in proper career education for its young people. Learning all of the skills that were mentioned at the beginning of section two will be essential for students in not only the business world, but also in relationships and elsewhere. Again, there are many steps that must be taken to help young people today feel comfortable advancing into the workforce, but getting young people involved with the marketplace at an early age will help them adjust significantly in the long run. 

People graduating high school today have fewer opportunities to succeed in their economy than people who came before them. This is mainly due to expanding globalization and technology, which leads to more outsourcing and a decrease in available jobs. Because fewer jobs are available in the standard job market, youth should be taught how to create their own jobs, opportunities, and enterprises that can help them prosper in an increasingly polarized economy.

4. ABLE TO ACT ON BUSINESS DREAMS

% of teens who would consider entreprneurship as a career

% of teens who wouldn't start a business due to " fear of failure" 

41%

While there is a great number of teens who are interested in starting a business, the primary concern of most of them is a fear of failure.  As we will lay out in our next issue, there are a lot of risks when it comes to starting a business. Furthermore, even if they were to come up with an idea, many young people are still unsure of what the business-starting process would look like. However, providing young people interested in business with information about this process and business role models would make them feel a lot more confident bringing their dreams into the real world. 

69%

67%

% of teens who say they have a business idea, but are unsure of how to start the process.

Section 5: Conclusion

Young people are often left behind in political and economic spheres but they can be responsible for plenty of good change and activism in our communities. Unfortunately, they are not always given access to programs where they feel like we have roles in our communities. Young people, while often portrayed as selfish and headstrong, do care a lot about the future. They have been the driving force behind political campaigns, such as movements for proper gun safety and climate change awareness, demonstrating a capability to come up with unique solutions for communal problems.

Through schools, mentorships, local libraries, and close relationships, young people can learn to start businesses and work economically. The entrepreneurial confidence of young people can be increased exponentially through opportunities such as youth business incubators, start-up workshops, and economic development classes. And if young entrepreneurs are given the tools they need, there's really no telling what true positive change will be able to come to pass.

SOURCES

Kourilsky, et al. “The Entrepreneur in Youth.” Google Books, Google, 2007, books.google.com/books?hl=en&lr=&id=-zDr3sXaLd0C&oi=fnd&pg=PR6&dq=youth%2Bsocial%2Bentrepreneurship&ots=IY9RsWRquy&sig=3lL1SKX9kyDDxtq3c9Ww4U-jYRs#v=onepage&q=youth%20social%20entrepreneurship&f=false.

Fromm, Jeff. “How Much Financial Influence Does Gen Z Have?” Forbes, Forbes Magazine, 10 Jan. 2018, www.forbes.com/sites/jefffromm/2018/01/10/what-you-need-to-know-about-the-financial-impact-of-gen-z-influence/#22ec5c8d56fc.

United Nations Department of Economic and Social Affairs. The World Youth Report: Youth Social Entrepreneurship and the 2030 Agenda. 2020, www.un.org/development/desa/youth/wp-content/uploads/sites/21/2020/05/WYR-2020-Executive-Summary-REV.pdf.

Fletcher, Adam. “Youth Engagement through Entrepreneurship.” Freechild Institute, 7 Jan. 2020, freechild.org/youth-as-entrepreneurs/

United Nations Department of Economic and Social Affairs. The World Youth Report: Youth Social Entrepreneurship and the 2030 Agenda. 2020, www.un.org/development/desa/youth/wp-content/uploads/sites/21/2020/05/WYR-2020-Executive-Summary-REV.pdf.

Frieswyk, Julie. “These Organizations Are Turning Teens into Social Entrepreneurs.” Diamond Challenge, 15 Nov. 2019, diamondchallenge.org/2018/11/these-organizations-are-turning-teens-into-social-entrepreneurs/.

Adriance, Joel. “How We Can Strengthen the Ecosystem of Support for Young Social Entrepreneurs.” International Youth Foundation, 1 Apr. 2016, www.iyfnet.org/blog/how-we-can-strengthen-ecosystem-support-young-social-entrepreneurs.

Kruse, Tina P., and Sundance Family Foundation. Youth Social Entrepreneurship: Advancing the Field. 2015, www.sundancefamilyfoundation.org/wp-content/uploads/2015/02/SFF-White-PaperFinal3.1.pdf.

Aspen Youth Entrepreneurship Strategy Group. YOUTH ENTREPRENEURSHIP EDUCATION IN AMERICA: A POLICYMAKER’S ACTION GUIDE. 2008, drive.google.com/file/d/1GRnCb-ME0ryn_lvTZ-xE5C_dMbzVMUkm/view.

“Condition of College and Career Readiness 2018.” Association for Career & Technical Education, ACT, Inc., 18 Oct. 2018, www.act.org/content/act/en/research/reports/act-publications/condition-of-college-and-career-readiness-2018.html.

Valerie J. Calderon and Daniela Yu. “Student Enthusiasm Falls as High School Graduation Nears.” Gallup.com, Gallup, 13 Mar. 2020, news.gallup.com/opinion/gallup/211631/student-enthusiasm-falls-high-school-graduation-nears.aspx.