G20 yea 2014 communique¦β and all final reports
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The #G20YEA Summit in Sydney final communique signed by the Presidents of the 20 Young Entrepreneurs organizations together with the national action plans for employment. The G20 Young Entrepreneurs Alliance Summit took place in Sydney, Australia, from the 18th to the 22nd of July, 2014. The Young Entrepreneurs of the European Union are represented by YES for Europe.
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2014 G20 Young Entrepreneurs Alliance Communiqué
Global structural unemployment is a crisis that disproportionately harms young people. Measures to
increase youth employment and promote entrepreneurship will increase medium to long-term trend growth
and productivity, thus reducing social risks. The nations of the world would improve the return on
investment in education by reducing work skills mismatches.
The G20 YEA continues to endorse the G20’s call for specific, actionable recommendations to increase
growth.
The young entrepreneurs of the world gathered at the Sydney G20 YEA Summit support the
Australian G20 priorities on private sector led growth and greater resilience of the world economy.
We call on the G20 Leaders, Finance Ministers and Central Bank Governors to focus on
entrepreneurship and agree to implement policies, legislation and incentives for ecosystems that
support start-ups and sustainable high growth[1] entrepreneurial SMEs, young entrepreneurs and
enhance private sector led growth.
This agreement should commit to eight specific actions to underpin the pillars of building entrepreneurship
ecosystems.
!
1. Reform global financial system to provide Investment & access to Capital
Facilitate the development of a methodology for financial institutions to provide affordable finance to
SMEs, which should be accompanied by learning programs.
Develop regulations to accommodate the development of new innovative forms of financing including
online cross-border platforms and networks of investors and entrepreneurs, such as crowd sourced equity
funding.
2. Education, training and business links
Promote close cooperation between the business and education sector to better link educational pathways
with labour market needs and address the skills mismatch, with renewed focus on STEM (science,
technology, engineering and mathematics) education.
3. Entrepreneurship Culture
Install experiential entrepreneurship education programs in all layers of the education system with a focus
on gender equality, values, ethics and business morals.
4. Innovation & Technology
Implement or expand legislation that incentivizes the commercialisation of innovation and new technology.
Incentivise programs that connect research, development and commercialization organisations with
entrepreneurs and SMEs.
5. Regulation and strengthening tax systems
Reduce regulatory and tax burden on labour for both employers and employees as well as reduce tax
and regulations for creation of new companies.
6. Trade & Globalization
Create a G20 multilateral start-up visa to improve the ability of entrepreneurs to travel and conduct
business internationally, and to increase labour mobility by allowing high and sustainable growth SMEs to
hire overseas skilled labour more easily.
7. Attracting Private Infrastructure Investment
Ensure that government procurement processes are made more open to small businesses owned by
young entrepreneurs.
8. Empower Development
Support the United Nations and ensure there is a major goal in the UN post 2015 development agenda on
youth employment and entrepreneurship, especially young women. [2]
The G20 Young Entrepreneurs’ Alliance (G20 YEA) is a collective of leading entrepreneurship NGOs
representing over 500,000 young entrepreneurs across G20 countries and the European Union. The G20](https://image.slidesharecdn.com/g20yea2014communiqueandallfinalreports-140807021621-phpapp02/85/G20-yea-2014-communique-and-all-final-reports-1-320.jpg)
![!
YEA members have already created an estimated 10 million jobs. G20 YEA is building on partnerships
and collaboration with governmental, business and civil society stakeholders such as the OECD, ILO, UN
Millennium Campaign, B20, Y20, EY, Accenture and all official G20 engagement groups. In 2014 over 400
young entrepreneurs and leaders from all G20 countries and 14 observer nations, selected to represent
the voice of the world’s future business leaders, attended the G20 YEA Summit in Sydney from 18
th
July.
The 2014 G20 YEA Summit built upon the dialogue between young entrepreneurs that began in Italy (at
the G8), and continued at the G20 YEA Summits in Canada, France, Mexico and Russia, resulting in the
G20’s recognition of the need for a special focus on youth entrepreneurship in the B20 communiqué and
the 2013 G20 leaders’ declaration. The Australian G20 YEA Summit aims to ensure that the ideas of
young entrepreneurs adopted by G20 leaders in 2013 will not remain merely a statement, and that the
world will witness concrete actions taken towards their institutionalisation.
Investment in small and medium enterprises (SMEs) and young entrepreneurs is essential for the G20
countries to meet and exceed the additional 2% increase in global GDP agreed in the Finance Minister’s
declaration of February 2014, under Australia's 2014 G20 chair. Youth unemployment in the US and
Canada is equivalent to 0.6% of GDP, and over the next 18 years as a result of scarring (lost future
earnings due to current unemployment) lost GDP will be 1.3%[3]. In 2014, B20 Australia has presented
that the economic opportunity in Europe’s unemployed youth is a potential value of €153 billion per
annum, or 1.2% of European GDP[4].
“The top 5% of all companies analysed (in terms of job creation) contributed to 72% of their
countries’ aggregate total revenue and to 67% of total jobs. These companies are characterized for
being young and presenting high rates of growth” [5]
The Moscow 2013 G20 YEA Summit produced ample evidence identifying that any policy to reinvigorate
growth and job creation should have entrepreneurship at its core, with a strong emphasis on youth.
Government and private sector-led investments in digital infrastructure, education systems and innovation
are crucial success factors for enabling thriving entrepreneurial ventures.
!
Policies for sustainable and inclusive private sector-led growth, job creation, investment in infrastructure,
trade, commercialisation of innovation and participation of women in the workforce must focus on building
ecosystems that create, enable and support high growth entrepreneurial SMEs.
!
The G20 YEA action plan on youth employment contains specific actions that, during the 2014 G20 YEA
summit, every country has committed to implement in order to improve their entrepreneurship ecosystem
and create more high growth SMEs. The Accenture report “The promise of digital entrepreneurship” and
EY report part 2 “Avoiding a lost generation: ten key recommendations to support youth entrepreneurship
across the G20”, both co-published with the G20 YEA, provide specific recommendations and best
practices to assist all G20 stakeholders.
Our sincerest mark of appreciation for their acknowledgement and support of the G20 YEA to The Hon
Tony Abbott, Prime Minister of Australia; The Hon Bruce Billson, Federal Small Business Minister of
Australia; Senator the Hon Scott Ryan, Parliamentary Secretary to the Minister for Education of Australia;
Dr Heather Smith, Australian G20 Sherpa; Helen Clarke, Administrator UNDP; Angel Gurria, Secretary
General of OECD. Thank you for the active collaboration of Mr Robert Milliner, Australian B20 Sherpa; Mr
Mike Callaghan, Australian T20 Chair; Ms Holly Ransom, Co-Chair Australian Y20 and Mr Richard
Andrews, Director of Engagement for the Australian G20 Presidency.
We, the leaders of the world’s young entrepreneurs, commit to reaching out to our G20 leaders and
stakeholders here in Australia, and also when we return to our home country. We request that the G20
leaders, governments, ministers and staff support and enable us to implement the G20 YEA action plan
on youth employment.
[G20 YEA GLOBAL ACTION PLAN ATTACHED]
[1] High growth is defined as companies that grow from 10 employees or more, at 20% per annum or more, for 3 years or more.
[2] The United Nations post-2015 agenda; Entrepreneurship’s critical role in creating youth entrepreneurship and employment, G20 Young
Entrepreneurs Alliance & Y20 Australia, July 2014, https://qaz1.az1.qualtrics.com/SE/?SID=SV_4ZKi9tEgFEAMagJ
[3] “Assessing The Long Term Cost of Youth Unemployment.” Martin Schwerdtfeger, Senior Economist. TD Economics Special Report. 29 January
2013.
[4] Economic cost of Europe’s youth not in employment, education or training estimated at over €150 billion (2012), Eurofound, October 22,
http://www.eurofound.europa.eu/press/releases/2012/121022.htm
[5] WEF, 2013, Entrepreneurial Ecosystems Around the Globe and Company Growth Dynamics, Report Summary for the Annual Meeting of the New
Champions 2013. http://www3.weforum.org/docs/WEF_EntrepreneurialEcosystems_Report_2013.pdf](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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- 1. ! 2014 G20 Young Entrepreneurs Alliance Communiqué Global structural unemployment is a crisis that disproportionately harms young people. Measures to increase youth employment and promote entrepreneurship will increase medium to long-term trend growth and productivity, thus reducing social risks. The nations of the world would improve the return on investment in education by reducing work skills mismatches. The G20 YEA continues to endorse the G20’s call for specific, actionable recommendations to increase growth. The young entrepreneurs of the world gathered at the Sydney G20 YEA Summit support the Australian G20 priorities on private sector led growth and greater resilience of the world economy. We call on the G20 Leaders, Finance Ministers and Central Bank Governors to focus on entrepreneurship and agree to implement policies, legislation and incentives for ecosystems that support start-ups and sustainable high growth[1] entrepreneurial SMEs, young entrepreneurs and enhance private sector led growth. This agreement should commit to eight specific actions to underpin the pillars of building entrepreneurship ecosystems. ! 1. Reform global financial system to provide Investment & access to Capital Facilitate the development of a methodology for financial institutions to provide affordable finance to SMEs, which should be accompanied by learning programs. Develop regulations to accommodate the development of new innovative forms of financing including online cross-border platforms and networks of investors and entrepreneurs, such as crowd sourced equity funding. 2. Education, training and business links Promote close cooperation between the business and education sector to better link educational pathways with labour market needs and address the skills mismatch, with renewed focus on STEM (science, technology, engineering and mathematics) education. 3. Entrepreneurship Culture Install experiential entrepreneurship education programs in all layers of the education system with a focus on gender equality, values, ethics and business morals. 4. Innovation & Technology Implement or expand legislation that incentivizes the commercialisation of innovation and new technology. Incentivise programs that connect research, development and commercialization organisations with entrepreneurs and SMEs. 5. Regulation and strengthening tax systems Reduce regulatory and tax burden on labour for both employers and employees as well as reduce tax and regulations for creation of new companies. 6. Trade & Globalization Create a G20 multilateral start-up visa to improve the ability of entrepreneurs to travel and conduct business internationally, and to increase labour mobility by allowing high and sustainable growth SMEs to hire overseas skilled labour more easily. 7. Attracting Private Infrastructure Investment Ensure that government procurement processes are made more open to small businesses owned by young entrepreneurs. 8. Empower Development Support the United Nations and ensure there is a major goal in the UN post 2015 development agenda on youth employment and entrepreneurship, especially young women. [2] The G20 Young Entrepreneurs’ Alliance (G20 YEA) is a collective of leading entrepreneurship NGOs representing over 500,000 young entrepreneurs across G20 countries and the European Union. The G20
- 2. ! YEA members have already created an estimated 10 million jobs. G20 YEA is building on partnerships and collaboration with governmental, business and civil society stakeholders such as the OECD, ILO, UN Millennium Campaign, B20, Y20, EY, Accenture and all official G20 engagement groups. In 2014 over 400 young entrepreneurs and leaders from all G20 countries and 14 observer nations, selected to represent the voice of the world’s future business leaders, attended the G20 YEA Summit in Sydney from 18 th July. The 2014 G20 YEA Summit built upon the dialogue between young entrepreneurs that began in Italy (at the G8), and continued at the G20 YEA Summits in Canada, France, Mexico and Russia, resulting in the G20’s recognition of the need for a special focus on youth entrepreneurship in the B20 communiqué and the 2013 G20 leaders’ declaration. The Australian G20 YEA Summit aims to ensure that the ideas of young entrepreneurs adopted by G20 leaders in 2013 will not remain merely a statement, and that the world will witness concrete actions taken towards their institutionalisation. Investment in small and medium enterprises (SMEs) and young entrepreneurs is essential for the G20 countries to meet and exceed the additional 2% increase in global GDP agreed in the Finance Minister’s declaration of February 2014, under Australia's 2014 G20 chair. Youth unemployment in the US and Canada is equivalent to 0.6% of GDP, and over the next 18 years as a result of scarring (lost future earnings due to current unemployment) lost GDP will be 1.3%[3]. In 2014, B20 Australia has presented that the economic opportunity in Europe’s unemployed youth is a potential value of €153 billion per annum, or 1.2% of European GDP[4]. “The top 5% of all companies analysed (in terms of job creation) contributed to 72% of their countries’ aggregate total revenue and to 67% of total jobs. These companies are characterized for being young and presenting high rates of growth” [5] The Moscow 2013 G20 YEA Summit produced ample evidence identifying that any policy to reinvigorate growth and job creation should have entrepreneurship at its core, with a strong emphasis on youth. Government and private sector-led investments in digital infrastructure, education systems and innovation are crucial success factors for enabling thriving entrepreneurial ventures. ! Policies for sustainable and inclusive private sector-led growth, job creation, investment in infrastructure, trade, commercialisation of innovation and participation of women in the workforce must focus on building ecosystems that create, enable and support high growth entrepreneurial SMEs. ! The G20 YEA action plan on youth employment contains specific actions that, during the 2014 G20 YEA summit, every country has committed to implement in order to improve their entrepreneurship ecosystem and create more high growth SMEs. The Accenture report “The promise of digital entrepreneurship” and EY report part 2 “Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20”, both co-published with the G20 YEA, provide specific recommendations and best practices to assist all G20 stakeholders. Our sincerest mark of appreciation for their acknowledgement and support of the G20 YEA to The Hon Tony Abbott, Prime Minister of Australia; The Hon Bruce Billson, Federal Small Business Minister of Australia; Senator the Hon Scott Ryan, Parliamentary Secretary to the Minister for Education of Australia; Dr Heather Smith, Australian G20 Sherpa; Helen Clarke, Administrator UNDP; Angel Gurria, Secretary General of OECD. Thank you for the active collaboration of Mr Robert Milliner, Australian B20 Sherpa; Mr Mike Callaghan, Australian T20 Chair; Ms Holly Ransom, Co-Chair Australian Y20 and Mr Richard Andrews, Director of Engagement for the Australian G20 Presidency. We, the leaders of the world’s young entrepreneurs, commit to reaching out to our G20 leaders and stakeholders here in Australia, and also when we return to our home country. We request that the G20 leaders, governments, ministers and staff support and enable us to implement the G20 YEA action plan on youth employment. [G20 YEA GLOBAL ACTION PLAN ATTACHED] [1] High growth is defined as companies that grow from 10 employees or more, at 20% per annum or more, for 3 years or more. [2] The United Nations post-2015 agenda; Entrepreneurship’s critical role in creating youth entrepreneurship and employment, G20 Young Entrepreneurs Alliance & Y20 Australia, July 2014, https://qaz1.az1.qualtrics.com/SE/?SID=SV_4ZKi9tEgFEAMagJ [3] “Assessing The Long Term Cost of Youth Unemployment.” Martin Schwerdtfeger, Senior Economist. TD Economics Special Report. 29 January 2013. [4] Economic cost of Europe’s youth not in employment, education or training estimated at over €150 billion (2012), Eurofound, October 22, http://www.eurofound.europa.eu/press/releases/2012/121022.htm [5] WEF, 2013, Entrepreneurial Ecosystems Around the Globe and Company Growth Dynamics, Report Summary for the Annual Meeting of the New Champions 2013. http://www3.weforum.org/docs/WEF_EntrepreneurialEcosystems_Report_2013.pdf
- 4. 0% 10% 15% 5% 20% 2007 2012 2/3 GLOBAL ACTION TO ADDRESS YOUTH UNEMPLOYMENTGLOBAL ACTION TO ADDRESS YOUTH UNEMPLOYMENT
- 5. ! ! G20!YEA!2014!Action!plan!on!youth!employment! ! Argentina!9!Action!Plan! Investment(and(access(to(capital( • We!have!been!planning!two!important!meetings!for!the!next!3!months.!One!of!them!will!be!with!the! Minister!of!Economy!Axel!Kicillof.!We!are!asking!him!our!request!on!the!regulation!of!the!law!that! supports!young!entrepreneurs!(25.872).!This!law!enables!young!entrepreneurs!to!get!access!to!state! finance! Education(and(coordinated(support( • In!relation!to!the!annual!day!of!training!for!young!entrepreneurs!on!behalf!of!FEDAJE!we!are!going!to! request!programmes!for!the!Minister!of!Education!to!deeply!analyse!them!and!therefore,!be!able!to! intervene!and!suggest!any!necessary!reforms.! Government(regulation(and(taxation( • The!most!important!program!or!action!plan!for!next!year!are!a!number!of!actions!that!put!pressure!on! the!government!so!that!it!finally!gets!the!regulation!of!the!law!previously!mentioned!(law!25.872).! Moreover,!we!have!also!arranged!meetings!with!regional!legislators!to!talk!back!the!law!at!a!local!and! provincial!level.! Innovation(and(Technology( • Meeting!with!the!science!and!technology!national!secretary!to!ask!him!to!improve!conditions!on! technological!access!to!young!entrepreneurs.!Moreover,!he!has!committed!himself!to!deliver!drafts!on! new!programs!designed!for!technologic!innovation,!as!well!as!the!creation!of!new!TICS! Trade(and(globalization( • We!have!been!able!to!arrange!a!meeting!with!the!Argentinian!chancellery!within!the!secretary!of! economic!matters!and!G20!Hugo!Javier!Gobbi!on!August!20th.!We!will!also!be!presenting!this!summit's! document!and!the!vast!report!on!the!issues!of!illegal!trading!or!black!market.!We!are!also!presenting!a! request!to!get!improvements!on!the!external!commerce!and!trading!for!young!entrepreneurs.! Entrepreneurship,(culture(and(equality( • We!organise!a!big!event!to!train!young!people!on!entrepreneurship!every!year!with!approximately! 3000!young!people!assisting.!This!year,!the!encounter!will!take!place!in!November.!We!have!already! invited!the!Minister!of!Education!to!participate!and!also!to!give!him!a!memorandum!claiming!for! improvements!with!respect!to!these!aspects.! ! Australia!9!Action!Plan! ENYA(&(Australia( • Delegates!will!work!with!ENYA!to!re9brand!&!re9structure!so!the!organisation!will!grow!sustainably! Investment(and(access(to(capital( • ENYA!will!partner!with!ACCI,!Federal!Government!and!private!banks!to!re9establish!a!micro!loan,! education!&!mentoring!program.!Partners!commit!to!long!term!capacity!building!funding!for!2!x!full!time! employees!so!the!program!is!sustainable.! Education(and(coordinated(support( • National!entrepreneurship!curriculum!–!a!group!committee!meeting!will!be!convened!with!the!relevant! ministers.!! • Every!delegate!will!email!their!principle!from!primary!school,!high!school!and!university!to!speak!or! guest!lecture!to!spread!the!entrepreneurship!message.!Delegates!will!coordinate!the!talks!with!Club! Kidpreneur,!ENYA!&!other!education!programs!determined!by!the!leadership!working!group.! • Delegates!commit!to!taking!on!more!interns!&!providing!training!opportunities!in!their!business! Government(regulation(and(taxation( • ENYA!&!Delegate!policy!working!group!submissions!&!meetings! o Minister!for!Small!Business,!Bruce!Bilson!–!All!items! o Treasuror!Joe!Hockey!–!All!items! o Minister!for!Industry,!Ian!McFarlane!–!Entrepreneurs!Infrastructure!Program! o Minister!for!Education,!Chris!Pyne!–!Entrepreneurship!educaiton! o Minister!for!Communications,!Malcolm!Turnbull!–!Crowd!Sourced!Equity!Funding!&!ESOP! o Key!Senators!in!all!states!–!All!items! o ATO!to!discuss!tax!concessions!for!SME!to!enable!growth!!
- 6. ! Innovation(and(Technology( • Planning!and!initiation!of!a!new!Australian!Centre!for!Entrepreneurship!with!government!ties!and!policy! group,!to!replace!ENYA! • All!delegate!businesses!commit!to!becoming!foundation!members! • 2.5!hours!a!week!donated!to!the!organization!and!making!sure!it!is!sustainable! Trade(and(globalization( • Lobby!for!a!start9up!visa!through!G20!and!APEC!channels.! Entrepreneurship,(culture(and(equality( • Ambassador!and!PR!program!for!start9ups!through!the!Australian!Institute!of!Entrepreneurship.! ( Brazil!9!Action!Plan! Investment(and(access(to(capital( • Implementation!of!two!laws!in!approval!process!that!amplify!access!of!high!risk!capital!markets!and! venture!capital!to!start!ups!and!SMEs!offering!financial!resources!to!new!ventures!and!protecting!the! interest!of!investors!and!entrepreneurs.! Education(and(coordinated(support( • Articulate!with!private!and!public!schools!to!persuade!the!implementation!of!entrepreneurs'!educational! methodology!in!their!curriculum!mainly!in!transversal!subject!matters!and!full9time!teaching! organizations.! Government(regulation(and(taxation( • Enforce!implementation!of!the!resource9allocation!management!council!according!to!article!67!available! in!the!law!of!fiscal!responsibility.! Innovation(and(Technology( • Support!the!development!of!a!new!law!at!federal!level!that!brings!together!Academia,!Government!and! Business!in!a!regular!basis!in!order!to!foster!innovation!and!technology!honoring!the!role!of! professorship/entrepreneurship.! Trade(and(globalization( • Work!with!MDIC!and!APEX!Brazil!to!implement!a!specific!way!to!internationalize!Brazil!young! entrepreneurship!and!utilize!international!resources!such!as!labor,!ideas,!companies,!money!to!advance! Brazilian!Startups!and!SMEs.! Entrepreneurship,(culture(and(equality( • Create!an!integrated!media!plan!which!reinforces!the!advantages!and!positives!attributes!of!being!an! entrepreneur!as!a!career!option!for!the!individual!and!as!a!social9economic!activity!with!high!growth!and! reward!for!society.! ( Canada!9!Action!Plan! Investment!and!access!to!capital! • Futurpreneur!to!establish!criteria!for!certification!and!partner!with!government!for!support! Education!and!coordinated!support! • CRA!registration!process!needs!to!include!the!resource!information!at!the!time!of!number!being!issued.! Delegates!of!G20!YEA!to!commit!to!attend!3!high!schools,!Universities,!elementary!schools,!or!community! organizations!to!share!your!business!story!within!the!next!year.! Government!regulation!and!taxation! • Recommend!to!ministers!of!small!business!and!finance!to!champion!change!in!taxation!laws!to!support! sustainability!for!young!entrepreneurs!and!their!businesses.! Innovation!and!Technology! • Identify!data!that!would!be!most!valuable!for!young!entrepreneurs.! • Identify!the!platform!that!the!data!should!be!presented!on!so!further!actions!can!be!taken!to!implement! • Continue!accountability!efforts!to!ensure!the!plan!is!followed!through.! • The!federal!government!is!encouraged!to!work!with!all!levels!of!government,!particularly!municipalities! to!ensure!accountability!efforts!are!enforced!to!ensure!the!G8!Open!Data!Charter!is!fully!implemented!by! December!31,!2015.! Trade!and!globalization! • Review!of!provincial!legislation!with!the!objective!of!standardizing!and!streamlining!fragmented! regulations!interprovincially,!making!it!easier!and!more!attractive!to!support!international!trade!in!the! long!term! Entrepreneurship,!culture!and!equality! • Government!of!Canada!to!fund!Futurpreneur!to!implement!a!national!campaign!to!showcase,!celebrate,!
- 7. ! and!encourage!youth!entrepreneurship!in!urban!and!rural!communities!across!Canada,!and!to!ensure! diversity!in!those!leaders!being!represented.! ( China!9!Action!Plan! Investment(and(access(to(capital( • Provide!the!case!studies!to!different!local!commercial!banks!to!help!them!develop!the!financial!products! which!meet!the!SMEs!needs.! Education(and(coordinated(support( • Create!applications!or!websites!which!invite!successful!businessmen!to!teach!the!skills!about! entrepreneurship.! Government(regulation(and(taxation( • Establish!a!platform!which!introduces!the!tax!reduction!policies!and!related!regulations!around!China! Innovation(and(Technology( • Make!a!report!and!submit!to!the!government!bureau!to!shorten!the!IP!protection!process.! Trade(and(globalization( • Bring!more!delegations!to!join!G20YEA!summit.! Entrepreneurship,(culture(and(equality( • Set!up!forum!to!promote!the!spirit!of!entrepreneurship!(invite!entrepreneurs!to!go!into!schools!to!make! speeches)!and!encourage!the!multi9divisions!about!startups!success.! ( European!Union!9!Action!Plan! Investment(and(access(to(capital( • Create!a!truly!united!European!investment!space!with!a!central,!pan9European!stock!exchange!and!align! tax!and!other!incentives!for!angel!and!corporate!investments.! • Capital!given!to!subsidies!is!lost!capital.!! • Replace!the!existing!subsidies!schemes!for!corporations!and!SMEs!with!soft!loans!and!equity!financing! instruments.! Education(and(coordinated(support( • Young!Entrepreneurs!to!peacefully!invade!secondary!and!high!schools!to!promote!entrepreneurial! culture,!improve!vocational!training!and!contribute!to!align!programs!to!newly!required!skills.! Government(regulation(and(taxation( • Harmonization!of!taxation!schemes!across!the!EU,!leveraging!successful!models.!! • Introduce!failure9tolerant!bankruptcy!legislation!across!the!EU!by!2018.! • Use!of!public!procurement!as!an!innovation!instrument,!guarantying!!a!minimum!30%!of!public! procurement!contracts!to!be!assigned!to!SMEs.! • "Entrepreneurial!Visa"!program!to!attract!World9class!talent!to!Europe.! Innovation(and(Technology( • Increase!the!EU!R&D!expenditures!over!GDP!from!2.08%!to!3%!by!2020,!making!sure!that!basic!research! is!evenly!well!funded!across!the!EU.! • Lifelong!learning!programs!for!fighting!digital!illiteracy!in!all!of!the!EU!regions!and!societal!groups,!open! government!data!and!any!other!data!of!public!interest,!strengthen!computer!science!education!(coding! and!more)!starting!from!the!earliest!stage!possible.! • Establish!regulation!for!a!unified!web!services!protocol!for!the!Internet!of!Things.! Trade(and(globalization( • Harmonize!tax,!accounting!and!all!relevant!regulation!for!SMEs!and!startups,!creating!a!truly!single! European!market.!Officially!establish!English!as!the!Business!Language!across!the!EU,!to!overcome!the! language!fragmentation!barrier,!increase!competitiveness!in!the!global!landscape.! • In!a!global!level,!make!sure!that!EU9based!companies!enjoy!the!free!market!benefits!while!doing!business! in!all!other!geographies!where!from!privately9!or!State9owned!companies!also!do!business!in!the!EU.! Entrepreneurship,(culture(and(equality( • Develop!culture!of!collaboration!and!culture!of!failure!with!identifying!and!promoting!role!models!in!All! of!the!EU!Member!States.! ( ! !
- 8. ! France!9!Action!Plan! Investment(and(access(to(capital( • Tax!incentive!rebate!for!large!companies!who!invest!in!start9ups! Education(and(coordinated(support( • Introduce!an!entrepreneurship!or!Business!project!official!courses!at!school! Government(regulation(and(taxation( • A!simplified!and!unique!Labor!contract! Innovation(and(Technology( • Introduce!a!coding!course!as!compulsory!at!school! Trade(and(globalization( • Create!a!one!year!G20!entrepreneur!working!visa!without!any!condition! Entrepreneurship,(culture(and(equality( • Creation!of!an!"educational!entrepreneurial!programme"!at!school! ( Germany!9!Action!Plan! Investment(and(access(to(capital( • Promote!a!new!startup!funding!program,!supported!by!entrepreneurial!experts!and!a!tax!reduction! scheme,!tailored!to!startups!and!establish!public!bank!guarantees!for!startups!to!reduce!risk!for! founders.! Education(and(coordinated(support( • Bring!entrepreneurial!education!to!schools,!for!example!by!introducing!the!Australian!“KidPreneur! Concept”!in!Germany.! Government(regulation(and(taxation( • Treat!early!stage!ventures!differently!from!established!companies!in!order!to!increase!the!survival!rate! and!to!reduce!the!barriers!of!entry!(mind!set:!entrepreneurs!should!be!able!to!focus!on!their!enterprise! and!not!on!taxation).! Innovation(and(Technology( • Create!a!network!for!qualified!mentors!to!voluntarily!foster!and!encourage!young!entrepreneurs.! Trade(and(globalization( • Create!a!platform!for!communication!and!exchange!of!business!information!with!regards!to!information! relevant!for!startups!and!young!entrepreneurs!in!all!G20!countries.! Entrepreneurship,(culture(and(equality( • "Postulation!for!more!entrepreuneurs!in!the!German!national!parliament,introduce!a!regular!"Meet!the! chancellor!day"!for!young!entrepreneurs!and!startups!to!emphasize!the!relevance!of!entrepreneurs!to!the! public,!and!specifically!introduce!a!"startup!night"!in!Germany!(as!in!Mexico!with!the!Slogan:!"The!best! stories!start!with!a!bad!decision!").! ! India!9!Action!Plan! Investment(and(access(to(capital( • Yi!to!create!online!and!offline!platform!to!facilitate!collaboration!between!mentor!and!mentee!companies.!! • Each!Yi!chapter!to!drive!offline!networking!by!hosting!a!networking!event!possibly!during!the!Global! Entrepreneurship!Week!(GEW)!to!facilitate!collaboration!between!government,!bankers,!investors,! partner!organization,!students!and!entrepreneurs! Education(and(coordinated(support( • Yi!will!drive!implementation!of!entrepreneurship!modules!for!students!through!Yi!YUVA!program.!Credit! based!module!that!will!be!piloted!across!Yi!YUVA!schools.! • Yi!YUVA!will!partner!with!organizations!to!provide!experiential!learning!experiences!for!students!(e.g.! Goonj,!parent!entrepreneur!sessions,!innovative!programs!in!communities!etc.)! • Yi!to!initiate!entrepreneur!education!week!for!schools!(age!15!to!17).!Module!will!include!topics!like! entrepreneurial!thinking,!monetizing!ideas,!finance!management,!inventory!management! • Yi!will!advocate!for!Accreditation!system!for!higher!education.! Government(regulation(and(taxation( • Yi!will!advocate!for!better!and!progressive!labor!laws!and!reforms!for!benefit!of!start9ups!(e.g.!reducing! the!number!of!procedures!and!thereby!reduce!the!number!of!days!for!setting!up!a!business!by!25%)! • Yi!to!advocate!e9governance!in!all!government!transactions! Innovation(and(Technology(
- 9. ! • Yi!to!drive!creation!as!well!as!delivery!of!entrepreneurship!module!(innovation,!start9up!process,!skill!set! etc.)!by!working!closely!with!National!Skills!Qualify!Framework!(NSQF).!Partner!with!entrepreneurial! cells!of!institutions!like!EDI,!IIM,!IIT.!! • Each!Yi!chapter!to!increase!utilization!of!the!module!through!partnership!with!entrepreneurial! organizations!like!TiE,!Angel!networks,!MSME!industries!at!local!level! • Yi!to!initiate!'Futurepreneur'!program!where!business!leaders!act!as!mentors!for!2!years!for!young! entrepreneur!companies!by!associating!and!serving!on!the!start9up!board!of!advisors! Trade(and(globalization( • Yi!will!advocate!better!trade!agreements!with!neighboring!countries!such!as!Burma,!Bangladesh!and! China! • Yi!will!explore!possibilities!to!ease!trade!with!neighboring!countries!through!CAAYE!(Commonwealth! Alliance!of!Asian!Entrepreneurs)!and!ASEAN.!Policies!such!as!entrepreneurial!visa,!hiring!foreign! workers,!transparency!in!duty!structure!will!be!explored.! Entrepreneurship,(culture(and(equality( • Each!Yi!chapter!will!organize!a!learning!session!around!failures.!Yi!chapters!will!invite!students!for! motivation!and!encouragement!on!risk!taking! • Yi!will!host!a!session!for!members!of!Indian!Women!Network!(IWN)!on!the!topic!of!entrepreneurship! • G20!YEA!2015!delegation!will!comprise!of!50%!women!delegates! • Yi!Key!Youth!Summits!to!have!substantial!number!of!women!speakers!and!women!entrepreneurs! ( Italy!Action!9!Plan! Investment(and(access(to(capital( • Provide!to!young!entrepreneurs!advice!and!networking!opportunities!to!favour!business!angels,!crowd9 funding!and!VCs!equity!investments.! Education(and(coordinated(support( • Young!Entrepreneurs!to!peacefully!invade!secondary!and!high!schools!to!promote!entrepreneurial! culture,!improve!vocational!training!and!contribute!to!align!programs!to!newly!required!skills.! Government(regulation(and(taxation( • Keep!requiring!a!revision!of!the!taxation!scheme!to!promote!employment!rather!than!penalizing!it.! Innovation(and(Technology( • Require!and!contribute!to!increase!R&D!expenditures!over!GDP!from!1%!to!EU!average!of!2%!leveraging! on!newly!introduced!incentive!schemes.! Trade(and(globalization( • Promote!multiple!contamination!opportunities!within!EU!and!globally!to!favor!increased!cross9border! cooperation!amongst!young!entrepreneurs.!Promote!indication!of!origin!and!values!associated!to!it.! Entrepreneurship,(culture(and(equality( • Require!inclusion!of!entrepreneurial!culture!(i.e.!risk!taking,!critical!thinking,!creativity!and!problem! solving)!within!Youth!Guarantee!programs.! ( Japan!9!Action!Plan! Investment(and(access(to(capital( • To!establish!the!culture!of!Commercial!fund!to!support!entrepreneurs!to!ease!too!much!responsibility!or! risk!to!make!Social!tolerance!to!failure!and!Environment!to!promote!re9challenge.! Education(and(coordinated(support( • To!promote!business!education,!to!provide!opportunity!to!child!to!experience!a!first!step!of!Business!and! Entrepreneur.! Government(regulation(and(taxation( • To!strengthen!the!connection!to!Government,!tell!our!opinion!and!attitude!to!Ministry!of!economy,!trade! and!industry,!Small!medium!enterprise!agency!to!get!policy!change.! Innovation(and(Technology( • To!make!the!website!to!promote!business!matching!thru!Internet,!sharing!the!information!and!success! story!over!varies!of!area,!ages!and!field!of!business.!That!makes!new!innovation.! Trade(and(globalization( • To!touch!Government!and!to!suggest!narrow!the!Target!to!protect!domestic!industry.!Relax!Visa,!Tariff,! other!barrier,!ease!Red!tape!and!in!the!other!field.! Entrepreneurship,(culture(and(equality( • We!JCI!Japan!is!a!group!of!entrepreneur!aiming!positive!change!to!the!world.!To!promote!to!increase! member!of!women,!foreigners!to!accept!diversity!in!our!society.!
- 10. ! Mexico!9!Action!Plan! Investment(and(access(to(capital( • Vinculation!between!banks!and!universities!for!finance!education.! The!creation!of!a!"dummies!guide"!to!get!access!to!capital! Education(and(coordinated(support( • Encourage!of!the!program!Impulsa!(it's!a!program!that!arrange!meetings!with!students!and!business!man! so!that!they!can!experience!the!real!problems!of!being!an!entrepreneur)! Platform!online!call!"ask!a!business!man"! Government(regulation(and(taxation( • The!creation!of!a!simplify!document!that!explains!the!taxation!in!Mexico.! Press!conference!with!people!of!SAT!to!ensure!the!certification!of!the!document!"taxes!for!dummies"! Innovation(and(Technology( • National!network!in!Coparmex!commissions!in!our!states!and!it!will!be!in!charge!for!the!vinculation!of! universities!students!and!the!national!commission!of!innovation!and!technology! Trade(and(globalization( • Vinculate!international!organisms!and!Government!to!identify!necessities!and!to!promote!the!product!or! service! Entrepreneurship,(culture(and(equality( • Unify!all!the!initiatives!that!promote!entrepreneurship!culture!to!create!a!network!that!will!be!available! for!young!entrepreneurs.! ( Russia!9!Action!Plan! Education(and(coordinated(support(( • Create!programs!and!platforms!to!promote!interaction,!apprenticeships,!internships!and!learning! between!entrepreneurs!and!university!students!to!assist!in!career!orientation!and!modern!skills! acquisition.! Entrepreneurship,(culture(and(equality(( • Conduct!contest!for!social!advertising!campaign!promoting!entrepreneurship!in!the!context!of!ethical! behavior.! Innovation(and(Technology(( • Regulate!the!market!to!promote!accessible!digital!infrastructure,!competition!and!growth!of!innovative! companies.! • Work!with!Media,!take!advantage!of!public!speaking!opportunities,!and!work!with!large!trade! associations!to!promote!entrepreneurship!as!a!driver!of!innovation!and!economic!diversity.!! Government(regulation(and(taxation(( • Persuade!regional!financial!commissions!on!the!importance!of!VAT!reform!in!promoting!regional! economic!development!and!entrepreneurship.! • Work!with!government!to!revise!the!tax!burden!on!labor!(including!both!wage!and!non9wage!labor!costs! on!the!part!of!the!employer!in!the!areas!of!innovation!and!social!entrepreneurship.! Investment(and(access(to(capital(( • Work!with!banking!associations!and!industry!to!lobby!more!favorable!regulations!and!banking!facilities! for!start9up!and!small!and!medium!business!loans.!! Trade(and(globalization( • Enlist!entrepreneurs!to!more!actively!participate!in!developing!a!high!quality!of!life!in!their!regions!that! will!retain!talent,!attract!investment!and!promote!social!well!being! ( Saudi!Arabia!9!Action!Plan! Investment(and(access(to(capital( • Establish!GCC!fund!to!support!SMEs!in!the!region!(seed!funding,!start9up,!growth)! Education(and(coordinated(support( Not!provided! Government(regulation(and(taxation( • Create!one!stop!shop!to!help!entrepreneurs!get!their!license!and!start!their!business!easily! Innovation(and(Technology( • Enhance!the!mentors!to!encourage!the!innovation!environment!in!the!GCC.! Trade(and(globalization( • Annual!exhibition!for!GCC!entrepreneurs!and!leveraging!the!participation!of!SMEs!in!the!international!
- 11. ! events.! Entrepreneurship,(culture(and(equality( • Propose!white!paper!to!introduce!department!for!entrepreneurship!in!the!GCC!council!to!run!start9up! weekend!in!each!of!the!Gulf!countries.! South!Africa!9!Action!Plan! Investment(and(access(to(capital( • Quality!of!the!application!for!finance!is!often!sub9standard.!We!need!a!"one!stop!shop"!(FUNDER,!Small! Enterprise!Development!Agency!"Non9Financial!Support)!to!assist!in!improving!the!quality!of!the!funding! Education(and(coordinated(support( • To!create!a!school!economic!ecosystem.!Pupils!to!have!enterprise!within!schools!(I.e.!Supply!the!uniforms! to!schools)!and!train!unemployed!youth!to!be!facilitators!of!the!student!entrepreneurs.!(Student! Enterprise!Programme)! Government(regulation(and(taxation( • The!policies!and!laws!(like!BBBEE!Act)!talk!to!Affirmative!Action,!Women!Empowerment,!and!yet!Youth! Empowerment!is!not!legislated.!Arrange!a!meeting!with!Presidency!(Deputy!Minister!for!Youth),! Department!of!Economic!Development,!and!Ministry!&!Small!Medium!Enterprise!to!radically!advance! regulation!of!Youth!Empowerment.! Innovation(and(Technology( • The!Ekasi!Weekend!Start9up!9!a!Bi9Monthly!weekend!bootcamp!where!40!Township!Youth,!where!they! are!grouped!in!teams!of!5!each!facilitated!by!mentors,!and!each!person!presents!an!idea!and!that!idea!is! developed!into!a!business!model! Trade(and(globalization( • A!Programme!to!unearth!youth!entrepreneurs!ready!to!trade!internationally.! Entrepreneurship,(culture(and(equality( • Same!as!Action!on!Education!And!Coordinated!Support! ! South!Korea!9!Action!Plan! Investment(and(access(to(capital( • Allow!exemptions!&!concessions!to!the!early!stage!ventures!(1~3!yrs.)!in!order!to!increase!the!survival! rate!&!reduce!the!barriers!of!entry!until!the!June!2014! Education(and(coordinated(support( • Publish!TOT!Entrepreneurship!training!program!until!the!December!2014! Government(regulation(and(taxation( • Allow!exemptions!&!concessions!to!the!early!stage!ventures!(1~3!yrs.)!in!order!to!increase!the!survival! rate!&!reduce!the!barriers!of!entry!until!the!June!2014! Innovation(and(Technology( • Develop!Design!thinking!(human!center!oriented)!program!for!innovation!&!creativity!until!the!June! 2015! Trade(and(globalization( • Build!Asia!Young!Entrepreneur!Alliance!to!help!entrepreneur!understand!globalization!&!expand!market! to!the!global!until!the!march!2015! Entrepreneurship,(culture(and(equality( • Launch!Bootcamp!with!Parents!(48!hours)!until!the!December!2014! ! Turkey!9!Action!Plan! Investment(and(access(to(capital( • TUGIAD!will!be!a!part!of!entrepreneurship!ecosystem!through!forming!a!company!among!its!members!by! creating!a!fund!to!support!entrepreneurs.! • TUGIAD!will!intense!its!financial!networking!role!to!create!an!access!to!financial!instruments!(Banks,! Angel!Investors,!Venture!Capitals,!Governmental!Funds,!etc.)!for!start9up!companies!and!directing!new! project!ideas!and!start9up!companies!also!to!its!own!members.! Education(and(coordinated(support( • TUGIAD!is!already!providing!entrepreneurship!certificate!programs!in!several!universities!in!Turkey.! These!training!programs!will!be!transformed!into!an!accredited!training!format.!TUGIAD!will!also!try!to! provide!a!training!incentive!for!entrepreneurs!from!the!government!for!these!trainings.!
- 12. ! Government(regulation(and(taxation( • In!consultation!with!the!entrepreneurs!of!different!sectors,!TUGIAD!will!develop!a!draft!tax!reform!plan! and!submit!it!to!the!government!for!a!more!favourable!tax!application!for!the!entrepreneurs.! Innovation(and(Technology( • Turkish!delegation!(TUGIAD)!will!work!with!public!institutions!to!develop!a!program!to!support!a! selective!group!of!innovative!manufacturers!with!export!capabilities!which!will!be!certified!for! prioritization!in!terms!of!governmental!support.!After!determination!of!these!certified!SMEs'!problems,! potential!solution!plans!will!be!developed!and!submitted!to!government!and!necessary!training! programs!will!be!provided!to!the!SMEs.! Trade(and(globalization( • TUGIAD!will!encourage!the!locally!successful!small!businesses!and!entrepreneurs!to!participate!in!the! B2B!meetings!with!international!communities!during!TUGIADs!frequent!business!trips.! Entrepreneurship,(culture(and(equality( • In!consultation!with!the!entrepreneurs!of!different!sectors,!TUGIAD!will!develop!a!draft!improved! syllabus!for!high9schools!and!universities!and!submit!it!to!the!ministry!of!education!and!academic! councils!of!the!universities.! ! United!Kingdom!9!Action!Plan! Investment(and(access(to(capital( • Target!3!technology!transfer!offices!and!link!them!to!at!least!3!most!influential!entrepreneurial!networks! in!the!UK.! Education(and(coordinated(support( • Bring!young!entrepreneurs!from!3!most!influential!entrepreneurial!networks!in!the!UK!and!link!them!to! existing!university!outreach!programs.! Government(regulation(and(taxation( • Promote!the!UK!Patent!Box!so!that!more!young!entrepreneurs!can!benefit!from!good!taxation!policies! Innovation(and(Technology( • Host!meeting!with!relevant!government!agencies!to!continue!to!increase!R&D!expenditures!as!a! proportion!of!GDP!9!during!Global!Entrepreneurship!Week.! Trade(and(globalization( • Promotion!of!fast!track!visas!for!start9ups!to!attract!talent!at!the!meeting!with!relevant!government! agencies!during!Global!Entrepreneurship!Week.! Entrepreneurship,(culture(and(equality( • Ensure!entrepreneurs!from!3!most!influential!entrepreneurial!networks!in!the!UK!promote!gender! diversity!and!tolerance!to!failure!in!the!educational!programmes.! ! USA!9!Action!Plan! Investment(and(access(to(capital( • We!believe!there!is!great!opportunity!in!providing!tax!credits!for!small!business!and!social!enterprise! investments.!We!will!learn!more!about!success!stories!on!the!state!level,!gather!case!studies!from!our! members!and!empower!them!to!help!start!a!movement!with!the!federal!government.! Education(and(coordinated(support( • We!all!commit!to!sharing!our!business!story!in!3!community!gatherings!this!year,!to!highlight!both!the! successes!and!challenges!faced!by!entrepreneurs.!Show!the!importance!of!ACTION,!even!in!the!face!of! doubt!and!fear!of!failure.! Government(regulation(and(taxation( • Meet!with!senior!leadership!of!Small!Business!Administration!to!highlight!challenges!faced!by!SMEs! dealing!with!complexity!of!US!tax!code.!Purpose!education!programs!to!prevent!avoidable!missteps!and! tax!navigators!to!provide!assistance!when!misstep!occurs.!! Innovation(and(Technology( • Overly!restrictive!visa!policies!are!blocking!SMEs!from!retaining!the!talent!they!need!and!needlessly! hindering!economic!growth!by!deporting!skilled!graduates.!We!will!collect!case!studies!from!our! members!of!how!this!is!impacting!their!business,!what!changes!they!need!and!identify!organizations! targeting!this!topic!that!can!assist!us!with!impacting!government!policy.!! Trade(and(globalization( • We!will!leverage!EO’s!network!in!45!countries!to!provide!global!business!immersion!opportunities!for!US! students!studying!aboard.!! Entrepreneurship,(culture(and(equality(
- 14. Part 2 Avoiding a lost generation Ten key recommendations to support youth entrepreneurship across the G20
- 15. WelcomeAvoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20, contains both key recommendations and actionable guidance based on best practices adopted by governments across the G20. It follows on from our previous report, action, where we surveyed 1,000 entrepreneurs on a wide range of possible policy and other initiatives that would boost their activities. across borders to impact both developed and developing economies was rising unemployment, an issue that affected young people, in particular. While growth has picked up in many countries and a new sense of optimism is present through much of the global economy, the high number of young unemployed has proven a persistent and deeply entrenched barrier to further progress. Although policymakers around the world have hunted hard for sustainable solutions, a global youth unemployment rate of 16.1% context, the broader message of economic recovery is one that must hold limited resonance for a young person without a job, or even the prospect of one. And yet all is not lost. Once again, the answer lies in the activities of one of the world’s most precious economic commodities: entrepreneurs. As generators of jobs, supporters of local communities and pivotal components of more prosperous societies, it’s no wonder they are so highly prized by governments across the G20 and beyond. Young entrepreneurs are of particular importance. Brimming with potential and energy, theirs are activities — if nurtured and supported correctly — that can lead to meteoric growth, jobs and success across societies. So, how can G20 governments help? An important starting point is the recognition that while a global phenomenon, youth unemployment varies from one G20 country to another. Low skill levels may be prevalent in some countries, whereas others enjoy higher skills but limited job new guide which provides a framework for assessing the youth employment challenge in G20 countries. From this analysis, and our own extensive experience with governments and entrepreneurs, we propose 10 key recommendations to G20 policymakers to consider. Solving this challenge will not happen overnight. Youth unemployment has penetrated deep into the G20 and breaking free of its grip requires governments and business to work together to support the job-creating activities of entrepreneurs. Helping greater numbers of young people to start and sustain their own enterprises holds the key to a stronger global economy and the emergence of a better working world: we hope this report helps accelerate the process. Maria Pinelli Global Vice Chair Diagnostic methodology Contents Developing an entrepreneurial ecosystem 40 44 Welcome 01 02 12Setting the scene Access to funding 20 Tax and regulation 30 culture 36
- 16. In December 2013, Australia assumed the role as Chair of the G20; a position that is surrounded with immense responsibility and complexity but, more importantly, the potential for a and inclusive growth, employment, investment in infrastructure, trade, driving the commercialization of innovation and increasing the participation of women in the workforce) are all outcomes that result from building ecosystems that create and enable high-growth are still faced with a global employment crisis which must be addressed with the same urgency and priority as the global collective of leading entrepreneurship non-governmental over 400 young entrepreneurs and leaders from 37 countries We look forward to supporting the Australian Government in the improvement and implementation of key priority areas, • • Facilitating open trade in goods and services • A strong and vibrant research sector • • The R&D Tax Incentive • • and thrive • • • • • Crowdsourced equity funding paper • Peer-to-peer lending • • • acknowledgement of youth and entrepreneurship in the 2013 commitment of the G20 employment working group to address We are particularly thankful and excited about the depth, hope together we will create a positive impact for many Sincerely, Jeremy Liddle Australia 1
- 17. 2 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 jobs for youth” shows economic vulnerability; education levels and disparity in employment between youth and adults in the labor force. A higher score corresponds to Rare is the G20 policymaker who has not sought to address one of the biggest challenges of our times — youth employment. As an issue that has proved borderless in scope and deep in impact, it should come as little surprise that there are many government programs in place around the world that have sought to address it. Leveraging initiatives already successfully deployed in other countries is attractive and practical. However, conditions in all countries are not the same, and a program that works in one environment may need to be customized to be successful in another. With this in mind, we have developed a guide to diagnosing the youth employment challenge in G20 countries. of youth employment challenge for G20 countries. The framework shows the relative position of G20 economies across speed of economic activity — or their relative capacity to create performance on the challenge of providing “decent” employment for youth. G20 countries are segmented into four quadrants, and on “quality jobs for youth.” In recognizing the differences in context for the youth employment challenge across economies, the objective of the governments. To bring these to life, the report presents a selection of best practice case studies that correspond to the and employment quality dynamics between quadrants, showcasing the different ways entrepreneurship policy can be successfully applied to action our recommendations and support youth employment. Using this new guide, and drawing on our own extensive experience with governments and entrepreneurs, we have developed 10 key recommendations as well as supporting actions for G20 governments to consider. 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Saudi Arabia South Africa Italy South Korea France Russia Japan United States Germany United Kingdom Canada Australia China Indonesia India Argentina Turkey Speed of economic growth Quality jobs for youth 12 3 Brazil 4 Policy implications: sustain economic performance; Focus on skills gap and employment quality Policy implications: sustain economic performance; sustain/grow competitive advantage Policy implications: improve economic performance; sustain/grow competitive advantage Policy implications: improve economic performance; Focus on skills gap and employment quality Solid economy; weaker skills match Weaker economy; weaker skills match Solid economy; solid skills match Weaker economy; solid skills match Mexico 1
- 18. 3Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Canada Argentina Best practice case studies governments Access to funding 1 Capital without mentorship is lost capital : Create funding mechanisms, either government run or government backed, that make mentorship Actions • entrepreneurs alongside mentorship and funding support. • Fund mentoring programs, and/or invest in mentoring programs through technology-focused, or skills-focused, government departments. • Tie start-up funding to mentoring by requiring young entrepreneurs to have a mentor at the early stages of their business for at least two years that involves regular engagement. • Match the right mentor with the young entrepreneur by developing a pool of mentors that can be drawn upon to match with the relevant entrepreneur. • and potential impact of mentorship programs. Launch business needs of young entrepreneurs. • Facilitate access to collateral-free capital for young entrepreneurs along with grants and other assistance as appropriate, to promote inclusive entrepreneurship.
- 19. 4 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Understanding Finance for Business initiative Canada Germany China Australia Best practice case studies 2 Access to alternative funding is critical : Create strong relationships and provide angels to develop or create initiatives that enable alternative sources of capital Actions • from business angels and VCs. • Provide incentives to venture capital and angel investors to invest in start-ups. • Create a community of angel-based investors. • Support friends and family in investing in small business through access to tax incentives, credits, deductions and incentives. • guaranteed loans to VCs. • Create a strong network of accelerators and incubators to support high-potential young entrepreneurs. • Collaborate with the private sector to support online crowdfunding and create new initiatives in a competitive environment, including equity crowdfunding.
- 20. Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Russia Russia Japan Best practice case studies 3 Public funding matters : Sponsor start-up growth with low-cost funding for targeted groups. Actions • Provide government funding support to start-ups. • Foster start-up programs mentored by academic institutions by directly investing in these institutions. • Develop an entrepreneurial support pipeline starting with online training, workshops, then peer-to-peer networks, mentorship opportunities, customer linkages and export readiness. • Boost female-led start-ups by providing government funding. •
- 21. 6 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Best practice case studies India Italy 4 credit moving : Create a new class of loan for small funding to meet expansion capital needs. Actions • For the Ministry of Finance or Commerce to establish and • Provide loans particularly focused on propelling startup that do. • targeted funding from banks. • new jobs for young people. • Provide intensive skills-based training and bank funding for young entrepreneurs. • Boost female-led start-ups by providing government funding.
- 22. 7Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Tax and regulation Best practice case studies Australia Canada Turkey Argentina France Corporate Small Business Development Forum Targeted tax and business incentives are highly important to supporting young entrepreneurs in scaling their businesses Actions • Identify and encourage investment schemes best able to target support on youth entrepreneurs. • Develop tax incentives to support and advance these schemes. • Develop tax incentives to encourage youth job creation. market access. Actions • Drive a government procurement scheme which includes youth entrepreneurs as a targeted supplier. • Support enterprise collaboration, and procurement opportunities, between high-growth young entrepreneurial •
- 23. 8 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 France Canada Best practice case studies French 2014 reforms to simplify the administrative code France Best practice case studies 7 entrepreneurs changing visa rules and offering funding support. Actions • Support international student mobility and introduce G20 multi-lateral visas. • Relax G20 business visa restrictions among G20 countries. • Promote immigrant entrepreneurs by linking them to funding institutions and business incubators. • Promote inbound start-up activity by providing relocation funding support. Complex and burdensome rules in areas such as tax hold back young entrepreneurs Simplify and streamline tax administration to ease administrative burdens on young entrepreneurs. Actions • Develop effective instruments to measure administrative and compliance burdens. • Simplify tax rules and administration to ease burdens. • Improve support and guidance available to young entrepreneurs. 6
- 24. 9Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Positive mainstream views about entrepreneurship are needed to attract young people : Create a positive narrative around entrepreneurship to help engage young people from an early age. Actions • start-up stage, and that promote the value of entrepreneurship to society and in particular youth. • Promote entrepreneurship opportunities through an integrated approach, combining government and industry in particular. • Target and educate unemployed youth about the opportunities entrepreneurship can bring them. • Publicly celebrate young entrepreneurs success and international promotion of domestic start-ups and • Integrate media/cultural campaigns with a broader national strategy that promotes the link between job creation and entrepreneurship. Best practice case studies Indonesia France 8 Entrepreneurship culture
- 25. 10 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 culture of entrepreneurship accelerators and networks to bring relevant talent together. Actions • while they are still in school and at university. Promote through an outreach program. • Promote organizations and environments that will positively • Bring together innovators and commercial organizations to showcase high-tech start-ups. • Launch initiatives to promote a culture of entrepreneurship • associations. Canada Australia Germany Best practice case studies 9
- 26. 11Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Russia For many of the recommendations and actions to have sustainable impact they need to work as part of a regional ecosystem, and within a regional ecosystem framework that fosters and attracts a critical mass of talent, capital and most importantly entrepreneurial leaders : Create the foundation for a regional Actions • funding model to support regional entrepreneur ecosystems. • Provide funding for a lead organization or consortia of organizations at the regional level that includes comprehensive entrepreneurship ecosystem indicators. • Provide funding to regional organizations and have them work within a regional alliance model comprised of all entrepreneur universities; and all levels of government. They operated within a coordination framework and meet on a regular basis. • development for the 21st century. • Collaborate with business to deliver more robust testing of entrepreneurs’ ideas and bring commercially viable opportunities to market. • Identify a short list of key issues challenging G20 countries incentives to attract young entrepreneurs across the G20 to solve these problems. Aviv-Yafo start-up ecosystem Israel Best practice case studies 10 Developing an entrepreneurial ecosystem
- 27. 12 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 scene The global challenge but for millions of people around the world who remain locked out of the jobs market, the economic recovery must seem a far way off. A look at the numbers tells its own grim story. In stood at 15.7%2 3 with only slight falls in both cases from the previous year. In the G20 countries, youth unemployment stood at 16.1%.4 Youth unemployment also differs in character from one country to another. In the G20, some face issues of low skills levels, while other countries’ youth may have high skills, but few job available, it should come as little surprise that despite the efforts of policymakers to help more young people back into work, youth unemployment — surely one of the most invidious greatest challenges for G20 governments to still address. ) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Argentina Australia Brazil Canada European Union China India Indonesia Saudi Arabia South Korea Turkey United Kingdom United States South Africa Russia Mexico Japan Italy Germany France 2013PE 2012 2010 2006 http://www.oecd.org/std/labour-stats/HUR-Jan14.pdf, 14 January 2014. Organization, http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/ genericdocument/wcms_190699.pdf, September 2012, page 2. ILO website, http://www.ilo.org/global/research/global-reports/global-employment-trends/2014/
- 28. 13Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Governments nonetheless have a wide range of approaches at crisis of 2007–08, many focused on the renewal and improvement of infrastructure. An important current approach is early years of growth and development. These approaches can all be effective in providing new job opportunities. However, Young people have suffered far more from the recent recession than their older counterparts in that they face “a much higher probability of being unemployed when in the labor force and they are more often employed in precarious jobs.”5 According to the Mexico and Saudi Arabia — in which the youth unemployment rate was over four times higher than that for adults over the age of 25. The ILO report, Global Employment Trends for Youth 2013,6 pointed out that many young people are working in low quality jobs that are insecure, poorly paid, with irregular hours and minimal job satisfaction that do not make good use of their to return, there is a need to repair the damage and look for lasting solutions to youth unemployment, in order that the generation so badly affected does not remain at a permanent to promote potential long-term solutions to youth unemployment, which include “apprenticeship schemes, youth guarantees, measures to promote youth entrepreneurship.”7 In this way, it is seeking solutions that emphasize employment quality and a close match between jobs and skills. schemes Vocational education and training is designed to help young people navigate the transition from education to work. It could include employment at relevant businesses under arrangements such as internships or apprenticeship schemes. Ideally, these would involve new economy businesses such as those in digital media and data analytics. In these ways it increases employability, matching and adapting young people’s skills to a valued type of work. The success of the apprenticeship model in Germany, a country with relatively low youth unemployment during the recession context of the recent economic slowdown.”8 G20 countries have Australia awarded retention bonuses to companies contemplating dismissing their apprentices; France granted apprentices; and Mexico increased funding for training grants. Brazil’s Professional Apprenticeships Plan “calls on all large and medium-sized enterprises to hire apprentices to a minimum of 5% of the workforce.”9 The UK and Italy recently introduced reforms to increase the number of apprenticeships. One problem in following the German apprenticeship model, however, is that it requires a similarly supportive culture, which is hard to achieve without adopting key aspects of German industrial life and education. For example, the UK’s initiative to adopt and transplant the German model has encountered problems because of a lack of commitment from industry, and because the “education system provides no clear vocational track.”10 WCMS_212423/lang--en/index.htm, 8 May 2013, page 42. 26 April 2014. “Youth unemployment is now a ticking bomb for all governments, both from developed countries and emerging countries. In the 21st century, the jobs we need to create will come neither from the big corporations nor from government, but they will come mainly from
- 29. 14 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Youth guarantees The youth guarantee is a means of tackling youth unemployment and which entitles young people to support in the labor market. and its main objectives are to promote labor market integration and prevent long-term youth unemployment.11 Of the G20 countries, Germany has the most mature youth guarantee Member States “to ensure that all young people under 25 receive a good quality offer of employment, continued education, an apprenticeship or a traineeship within four months of leaving formal education or becoming unemployed.”12 This offer is then to be adapted to each individual need and situation. encouraging Member States to adopt this policy. It is also uncertain whether it will make a major contribution to youth share the social market economic model of Scandinavia. Youth entrepreneurship work so that it matches their own skills and interests. important way of harnessing their enthusiasm, energy and ambition to contribute to economic development.”13 If their widely to society. It is generally accepted that entrepreneurs “create jobs, increase innovation, raise competition and are responsive to changing economic opportunities and trends.”14 Young entrepreneurs also can also act as role models for their peers and, by their own company’s operations or more their example. http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_212423.pdf, p. 66. http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---ifp_seed/documents/publication/wcms_175469.pdf, accessed July 2014, page 1.
- 30. Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 unemployment unemployment, a new tool which highlights the different policy dynamics of the economic situation and youth employment. There are two coordinates: the speed of economic growth and quality employment for youth. Speed of economic growth combines the following data about a country’s young people: their participation in the labor force; their unemployment rate; their inactivity rate; and their employment to population ratio. of youth in the labor market, economic vulnerability and the share of youth unemployment in total unemployment. G20 countries are scored out of 10 on speed of economic growth and quality jobs for youth, which shows their performance relative to other G20 countries on these dimensions.15 A high score indicates that the country’s position is a relatively favorable one. The tool also includes a measure of the relative scope of the by the size of the total youth population by country (i.e., those G20 members are positioned on the chart, and represented by a sphere representing the size of the youth population. For example, Australia and Canada have positive scores on both the speed of economic growth and on quality jobs for youth, while Italy’s scores are by contrast relatively poor. These countries are therefore positioned in diagonally opposite quadrants while on the chart. 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Saudi Arabia South Africa Italy South Korea France Russia Japan United States Germany United Kingdom Canada Australia China Indonesia India Argentina Turkey Speed of economic growth Quality jobs for youth 12 3 Brazil 4 Mexico Figure 1 15. Scores in the diagnostic show the relative position of a given G20 country relative to other G20 countries only. Data for other economies is not included in the scoring system.
- 31. 16 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Implications for government and policy development unemployment. It analyzes the appropriate response for each country to its own youth employment problem, given its position to provide quality jobs for youth. Indonesia, for example, has a solid economy but shows softer performance on its current ability to provide quality employment opportunities for its young people This assessment suggests distinct implications for governments and for policy development across the G20. For example, best practice policy examples for Indonesia will be different from those for France or South Korea, which show relatively strong performance on quality jobs, but softer economic conditions. Policymakers in government need to take account of the present conditions of youth employment in their own country and frame approach into their respective national socio-economic context 16 The best practice exemplify the differences in successful policy application, There is clearly no easy solution to the problem of youth unemployment. Any approach must address several components, such as government initiatives to diversify industry, promote apprenticeships, offer development stage funding and tax relief, use education as a driver for change, and foster a culture of entrepreneurship. The approach must also take account of the particular character of youth unemployment in each country, so that the government’s response is targeted and answers. Quality jobs for youth 1.0 1.0 2.0 2.0 3.0 4.0 5.0 6.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 7.0 8.0 9.0 10.0 Solid economy; weaker skills match Solid economy; solid skills match Weaker economy; weaker skills match Weaker economy; solid skills match Policy implications: sustain economic performance; focus on skills gap and employment quality Policy implications: sustain economic performance; sustain/grow competitive advantage Policy implications: improve economic performance; sustain/grow competitive advantage Policy implications: improve economic performance; focus on skills gap and employment quality Speed of economic growth 12 3 4 Figure 2
- 32. 17Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/ey-exceptional-extras-january-2014---G20-entrepreneurship-barometer-2013, accessed July 2014. Not only has entrepreneurship proved a fertile source of job creation, with entrepreneurs accounting for 67% of new jobs across the G20,17 it also drives future economic growth and helps establish stronger, more prosperous communities. However, young entrepreneurs themselves are concerned at a lack of recognition of this reality, and that it is unnecessarily G20 Entrepreneurship Barometer 2013, we found that “only 15% reported their own country had a culture that fully supported their efforts.”18 The policy priority for all the G20 countries must be to create and maintain sustainable entrepreneurship ecosystems. These will encourage young people to start their own businesses and shape them into high-quality working environments, developing their own skills together with those of their employees. Such an initiative should be a long-term joint venture, between government, business and the young entrepreneurs themselves, with the ultimate goal of increased and sustainable job creation and radically lower youth unemployment.
- 33. 18 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 There are many examples of best practice from across the G20 which are targeted at enabling entrepreneurship and creating more jobs for young people. Furthermore, “best practice” for a economic circumstances, the strength of entrepreneurial ecosystem and previous best practice examples. In this report we investigate and showcase a selection of best practice initiatives from across the G20 and present evidence of their progress so far. We distill what is important for G20 governments to consider, and list clear actions for them to deploy in their respective unemployment to classify best practices according to economic and employment quality drivers. In the G20 Entrepreneurship Barometer 2013,19 we explored the concept of “the power of three,”setting out how governments, entrepreneurs and the larger corporations can work cooperatively to create thriving entrepreneurial ecosystems. The Barometer surveyed the views of 1,500 young entrepreneurs from across the G20, capturing and drawing together their insights. These young people considered the rate of progress within each country’s entrepreneurial environment, as well as identifying key enablers and obstacles. To provide the context for the best practice case studies that follow, we have summarized the results of our survey within each of three main pillars: funding, tax and regulation, and culture.20 In each, we have set out case studies and key messages to G20 governments, taking into account conclusions drawn from our diagnostic tool. Getting labor working in developing countries job creation and employment generation across the emerging markets but there is a huge amount still to do. For example, according to the World Bank’s World Development Report 2013, around 600 million new jobs will be required over the next 15 years to support a growing workforce. It is important to note that in most emerging economies, 9 out of 10 jobs are created by the private sector, which is the foundation of any thriving economy. We have developed a private sector development framework, in collaboration with governments and international development partners, to drive inclusive entrepreneurial particularly vital to the future of developing countries because in the coming years, they must rebalance their economies toward greater domestic consumption, import demand and higher-value business activity. The creation of an environment in which entrepreneurship these objectives, as will the need to empower the next emerging market: women. With nearly one billion expected to enter the workforce over the next decade, women are increasingly seen as the engine of the next wave of economic growth. Governments have a vital role to play in facilitating and encouraging this entrepreneurial development and funding ecosystem. In doing so, they will help make it far more likely that new businesses take root, delivering the sustainable jobs and growth so vital for accelerated development and the beginning of a better working world. rohan.malik@in.ey.com.
- 34. 19Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 I am a young entrepreneur, and here’s how you can help me The young entrepreneurs of the G20 hold the key to solving our youth unemployment problem, but we must help them to achieve their potential. Their key concerns are as follows: I need training 66%say entrepreneurial skills need I need a more supportive culture 51%expect government programs providing education, funding and high impact. I need my contribution to be recognized 50%think the promotion of entrepreneurs’ role in creating new jobs will have a high impact on entrepreneurship in G20 countries in the next three years. I need help with access to funding 73%say access to funding remains very or their countries. I need support for those who invest in me 41%support tax incentives for investment in small businesses. I need society to tolerate failure 23%say business failures are perceived as barriers to future business prospects. I need a streamlined tax and regulatory system 29%rank a “reduced burden of government regulation” as an important factor in accelerating entrepreneurship. I need innovative funding 49%believe innovative funding platforms will accelerate entrepreneurship. I am innovative, I have a global mindset, I want to learn. I seek out advice and support when it is available. on my community and bolster the economy by creating jobs. I am a young entrepreneur.” “
- 35. 20 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Access to funding This is the single area in which improvements are seen to be G20 Barometer. There should be a “deeper and more diverse mix of funding options,” including more innovative ways of raising 21 More traditional methods, such as venture capital funds and private sector investor investment, should be incentivized to focus more on entrepreneurial businesses. The bank lending model needs to traditional collateral: alternative approaches are required, such as credit guarantee schemes. website, http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/ey-exceptional-extras-january- 2014---G20-entrepreneurship-barometer-2013, accessed July 2014, page 14. A particularly valuable source of advice is the experienced entrepreneur who acts, often pro bono, as a mentor to young start-ups. The key recommendation is to create funding mechanisms, either government run or government backed, that Actions for policymakers: • entrepreneurs alongside mentorship and funding support. • Fund mentoring programs, and/or invest in a mentoring programs through technology-focused, or skills-focused, government departments. • Tie start-up funding to mentoring: young entrepreneurs must have a mentor at the early stages of their business. The relationship must be sustained for at least two years and involve a monthly engagement. • Match the right mentor with the young entrepreneur by developing a pool of mentors that can be drawn upon to match with the relevant entrepreneur. For example, the needs of young entrepreneurs must be considered, as well as the proximity of mentorship. • and potential impact of mentorship programs (e.g., subsidized loans or venture capital schemes, in addition to grants and • Facilitate access to collateral-free capital for young entrepreneurs along with grants and other assistance as appropriate, to promote inclusive entrepreneurship. Capital without mentorship is lost capital1
- 36. 21Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Futurpreneur Canadian (formerly the Canadian Youth Business 22 includes a start-up program that provides the support that entrepreneurs need to get their businesses off the experience of a “hand-matched” business professional who mentors them for a minimum of two years to ensure the success of the business. Futurpreneur Canada provides access to up to Development Bank of Canada. Performance: Since 1996, Futurpreneur Canada has helped 6,570 young entrepreneurs to start their own business, creating more than 26,000 jobs and generating more than CAD191m in tax revenue in the process. 22. Futurpreneur website, http://www.futurpreneur.ca/, accessed 5 June 2014. The U.S. Small Business Administration website, 24. “Startup America,” The U.S. Small Business Administration website, http://www.sba.gov/about-ba/sba_initiatives/startup_america/about_startup_america, accessed 5 June 2014. PulsoSocial, http://pulsosocial.com/en/2013/11/14/start-up-chile-and-start-up-brasil-two-very-different-beasts/, TechCrunch website, http://techcrunch.com/2013/04/15/startup-brasil-brazil/, 15 April 2013. — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. program designed to mobilize the current generation of early- stage entrepreneurs to help build and support the next generation of American businesses.23 — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. Performance: energy sector pilot. This funded four accelerators that in turn supported 100 start-ups. The approach is expected to be scalable to support 1,000 start-up companies.24 Where the picture is mixed, with high output but with lower quality jobs, the policy objective is to leverage funding incentives to drive innovation and entrepreneurship skills development among young people. Start-up Brasil is a national acceleration program. It aims to support the creation, and accelerate the growth, of approximately 150 high-tech start-ups across the country. The investment, which is part of the government’s Programa support to expand their marketing and sales efforts.25 The program has an initial budget of US$19m, with a stipulation that have operations in Brazil. Performance: This is early days for the program. Nonetheless, it provided 56 start-ups with approximately US$90,000 in initial capital, as well as funding nine accelerators (selected from a pool are expected to make additional investments of up to R$1m multiplier effect. With companies required to be incorporated in of the skills gain. — has stronger economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality.
- 37. 22 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 • The Korea Fund of Funds was set up to support local venture stable capital sources and establishing a “venture ecosystem.”26 The average size of funds is US$7m, and The uniqueness of the fund is that it invites more capital from the private sector. The government’s capital creates synergy providing loans or guarantees. • grants.27 1,000 people in their 20s and 30s who have ground-breaking ideas but no capital. They are also given training at the business establishment center, which acts as a workspace and and supplies. Performance: were created in 1,551 businesses. In its fourth cycle, from March to May of this year, the program stepped up its support and decided to award 1,200 winners instead of 1,000. — has softer economic growth and higher quality jobs for youth. and sustain and grow skills-based competitive advantage. targeted primarily at those who are from economically disadvantaged backgrounds. It assists and supports young people between the ages of 18 and 35 who have innovative business ideas for which they have not been able to secure funding elsewhere. There is an initial assessment phase during which candidates’ ideas and business plans are tested in interview. Then, for those who are successful, the Fundación Impulsar provides seed capital along with business planning courses, development support, a greater awareness of the culture of entrepreneurship and a year of mentoring. The mentors are experienced business people who volunteer 4 hours per week to share their knowledge. Performance the 1,200 microenterprises already funded by the Fundación Impulsar, 70% are still trading and they have an average of three employees each. — has softer economic growth and lower quality jobs for youth. performance and focus on closing the skills gap and improving employment quality. 26. Ashoka Changemakers wsj.com/news/articles/SB10001424127887323393804578554681586293800, 19 June 2013.
- 38. 23Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Private equity and VC are important parts of the funding landscape, which are of particular help to entrepreneurs in scaling up their businesses. While not a panacea, crowdfunding Along with funding, business accelerators and incubators also support innovative businesses by providing them with technical and marketing guidance from networks and from experienced entrepreneurs. There is a clear cross-fertilization between alternative funding and tax policy. This is evident in the Turkish scheme for business angels and the Australian tax credits for venture capital. The key recommendation is to create strong relationships and business angels to develop or create initiatives that enable alternative sources of capital. Actions for policymakers: • from business angels and VCs. • Provide incentives to venture capital and angel investors to invest in start-ups. • Create a community of angel-based investors. • Support friends and family in investing in small business through access to tax incentives, credits, deductions and incentives. • guaranteed loans to VCs. • Create a strong network of accelerators and incubators to support high-potential young entrepreneurs. • Collaborate with the private sector to support online crowdfunding and create new initiatives in a competitive environment, including equity crowdfunding. Access to alternative funding is critical 2 — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. Development Fund jointly launched the Understanding Finance for Business initiative to support London’s entrepreneurs in raising capital.28 It helps companies to make informed decisions advice through seminars, workshops and one-on-one support. Through the Gateway2Investment program,29 it provides other investors. Performance: The program helps London-based businesses 250 employees and are looking to raise from £100,000 — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. growth in the UK by promoting new enterprise and entrepreneurship.30 Performance: It gives income tax relief at 50% of the cost of shares on a maximum annual investment of £100,000 31 Relief is given through reducing the investor’s income tax liability. In addition, it offers an exemption of 28% tax on any capital gains occurring within three years of the investment.32 28. “Government backed schemes and initiatives promoting new business startups,” ENT magazine website, http://www.entmagazine.com/start-ups.html, accessed 29 May 2014. 29. “Gateway2Investment,” British library website 30. “Seed enterprise investment scheme,” SEIS website, http://www.seis.co.uk/, accessed 29 May 2014. Gander Tax Services website 2014; Lauren O’Neill, “Securing tax relief for prospective investors,” FPM website, http://www.fpmca.com/news/securingtaxreliefforprospectiveinvestors, 18 Nov 2013.
- 39. 24 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 33. Robb Mandelbaum, “S.B.A. Signs Its First Venture Capital Fund to New Investment Program,” The New York Times website, 34. “Chapter 3.1: Connecting Canadians With Available Jobs,” Government of Canada Budget 2014 website, Europa website, Private equity & Venture capital Association (EVCA) website, 36. German Accelerator website, http://germanaccelerator.com/, accessed 5 June 2014. — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. 35 — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. Stage Innovation Fund initiative in January 2013 to improve access to investment capital for start-ups.33 The program provides government-guaranteed loans to VC funds, which in turn use this amount to make equity investments. It aims principally to provide direct investment to those companies that are otherwise overlooked by VCs. Performance: The program aims to provide US$200m in debt venture funding. The German Accelerator is a PPP which aims to expose German tech start-ups to American business culture and help them to enter the US market.36 It provides entrepreneurs with three to six months of hands-on mentoring at locations in Silicon Valley, San Francisco and New York City, during which time experienced mentors continually challenge the entrepreneurs’ assumptions and provide feedback to them. The start-ups actively engage with customers, establish relationships, adjust to local styles of connections with potential investors. Performance: There have been about 250 applications since the program’s inception in 2011, and over 40 companies have already taken part. The Canadian Government launched the Canada Accelerator and Plan in September 2013. The program aims to establish a developed network of accelerator and incubator organizations to enable high-potential young entrepreneurs, to develop their ideas into globally competitive businesses. Performance: provide the program with an additional CAD40m (US$36.4m over four years, starting in 2015–16, and thus increase its total 34 35 along with introduced a single set of fundraising regulations that once VCs Performance: than 3,000 companies were venture backed. Start-up stage investments accounted for the majority of VC activity by 35ii
- 40. Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. — has stronger economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality. In 2012, the Western Australian Government partnered with the Australian crowdfunding platform Pozible to launch a ScreenWest initiative, making up to US$250,000 available for digital projects in the state.38 The program is an excellent example of the “Power of 3,” with state government, a commercial company and entrepreneurs all being involved. Creative teams will need to attract contributions online in order to secure the grant. Then for every dollar they raise through online crowdfunding, ScreenWest will contribute a further three on digital visual media, an industry that has proved especially attractive to young people. Performance: There have already been a dozen projects which have achieved at least 100% funding, and many others already partially funded.39 The country is in the process of building 150 business start-up incubators for Chinese students who are returning to China after attending higher education institutions abroad.37 It offers an informational platform and facilitates the communication and sharing of knowledge about human resources, projects, policies and funding. Performance: enterprises were started by students who have returned to China after studying abroad. Nurturing youth entrepreneurship entails a sustained effort from ventures by providing seed capital at a reasonable cost. Many countries have set up specialized funding agencies that focus on and early-stage start-ups. Given many young entrepreneurial funding support through these channels also demands a coordinated approach. In particular, entrepreneurs look to governments to play a more supportive role by encouraging more public-private partnerships, developing an entrepreneurial support pipeline starting with online training, workshops, then peer-to-peer networks, mentorship opportunities, customer linkages and export readiness. Linking funding to education is consequently an important mechanism for supporting young entrepreneurs. The key recommendation is to sponsor start-up growth with low-cost funding for targeted groups Actions for policymakers: • Provide government funding support to start-ups. • Foster start-up programs mentored by academic institutions by directly investing in these institutions. • Develop an entrepreneurial support pipeline starting with online training, workshops, then peer-to-peer networks, mentorship opportunities, customer linkages and export readiness. • Boost female-led start-ups by providing government funding. • Public funding matters 3 37. C. Custer, “China Has 150 Start-up Incubators Just for Returning Study-Abroad Students,” Tech in Asia website, http://www.techinasia.com/china-150-start-up-incubators/, 24 August 2011. 38. “State Govt takes lead in innovative grant allocation initiative,” Government of Western Australia website, 39. “ScreenWest’s 3 to 1,” Pozible, http://www.pozible.com/collection/detail/25, accessed 5 June 2014.
- 41. 26 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 41. Steph Welstead, “Government launches start-up loans for young entrepreneurs,” Startups UK website, http://startups.co.uk/government-launches-start-up-loans-for-young-entrepreneurs/, 27 May 2012. 42. Abigail Van-West, “Start-up Loans scheme for young entrepreneurs explained,” Startups UK website, http://startups.co.uk/start-up-loans-scheme-for-young-entrepreneurs-explained/, 28 January 2013. 43. “Helping Russian entrepreneurs: Russia’s Internet Initiatives Development Fund,” Think Russia website, http://www.thinkrussia.com/policy-initiatives/helping-russian-entrepreneurs-russia’s-internet- initiatives-development-fund, 27 November 2013. 44. Oliver Staley, “Russia teams with MIT on Skolkovo Institute of Science and Technology,” The Washington Post, http://www.washingtonpost.com/business/russia-teams-with-mit-on-skolkovo-institute-of-science-and-technology/2013/05/09/54b31e9c-b5da-11e2-b94c-b684dda07add_story.html, 8 May 2013. 45. Andrii Degeler, “Russian tech hub Skolkovo in 2012 by the numbers: $97m in grants, 750 residents, 49 funds,” The Next Web, http://thenextweb.com/insider/2012/12/17/skolkovos-2012-97m-in- grants-750-residents-49-venture-funds/, 17 December 2012.46. “Japan’s tech startup solution? Women,” CNN Money website, http://management.fortune.cnn.com/2013/09/11/japan-tech-women/, accessed 29 May 2014. 46. Michael Fitzpatrick, “Japan’s tech startup solution? Women,” Fortune magazine, http://management.fortune.cnn.com/2013/09/11/japan-tech-women/, 11 September 2013. quality jobs for youth performance and sustain and grow skills-based competitive advantage. The Russian Government launched its Internet Initiatives funding, training, and organizational support for aspiring internet entrepreneurs.43 The IIDF’s goal is to create a favorable funding environment for the country’s digital economy. Performance: As of October 2013, the IIDF had received nearly 1,000 proposals from across Russia. The IIDF plans to select the 100 most promising applications, of which 50 will receive up to 50 will receive online access to training courses and advice from industry experts. — has softer economic growth and higher quality jobs for youth. performance and sustain and grow skills-based competitive advantage. Skolkovo Innovation Center44 (also known as “Russia’s Silicon Skolkovo near Moscow. The project is similar to the ecosystem, Silicon Valley, in the US, providing end-to-end support for new ventures to develop successfully. The Skolkovo Institute of Science and Technology’s curriculum only offers graduate Finance. It seeks to create tech start-ups and lure corporate research laboratories with tax breaks and relaxed visas and customs regulations. It utilizes the infrastructure, resources and other features of the technology park. Performance: It has successfully backed 750 start-ups. By 201245 it had US$97m in grants, 750 residents and 49 venture capital funds. It also had created 131 intellectual property items. And had attracted IBM, Microsoft and Siemens to locate to — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage. The Japanese Government has inaugurated a fund to help young female entrepreneurs launch new companies. This forms a part of the country’s economic revitalization measures, known as the “Japan is Back” campaign. Tech start-ups launched by women are a particular growth area in Japan.46 Performance: As part of this funding program, Japan’s young female entrepreneurs. Start-up founders also can apply for special low-interest loans from banks. The UK Government launched a new scheme, in 2012, offering loans to young people to help them start new ventures. The StartUp Loans Scheme which has funds of £82.5m 40 aged between the ages of 18 and 24.41 The most promising applicants receive formal mentoring and training, including help with developing a business plan. Those with “robust and approved” plans are eligible for loans of around £2,500 Performance: By the end of 2013, more than 3,000 people had registered interest for a StartUp Loan and over 460 new businesses had been approved, with loans totaling over 42 — has strong economic growth and higher quality jobs for youth. and sustain/grow competitive advantage.
- 42. 27Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 47. “Partnership to provide support to youth entrepreneurs,” Industrial Development Corporation (IDC) website, http://idc.co.za/media-room/press-release/media-releases-2013/400-record-disbursements-for-industrial-development-2, 21 October 2013. 49. “Helping Russian entrepreneurs: Russia’s Internet Initiatives Development Fund,” Think Russia website, http://www.thinkrussia.com/policy-initiatives/helping-russian-entrepreneurs-russia’s-internet-initiatives-development-fund, 27 November 2013. http://www.economic.gov.za/communications/media/press-releases-2013/361-minister-patel-welcomes-efforts-to-fast-track-youth-entry-into-business/download, 21 October 2013. will enable youth-owned businesses to have easier access to 47 The agreement will result in a coordinated approach to providing funding and support services to these businesses. The cooperation agreement between the IDC, sefa and the NYDA April 2013, in which the government and its social partners made a commitment to prioritize youth employment and skills development. The IDC announced it had set aside ZAR1b 48 from its Gro-e-Scheme to fund businesses owned by young entrepreneurs.49 Performance: These programs offered support to 44 youth- owned businesses during the six months from the signing of enterprises during the same period.50 — has softer economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality. Accessing expansion capital can be a frustrating process for young entrepreneurs. Banks are low-risk lenders, and quite often young entrepreneurs are unable to meet the qualifying criteria for traditional loans. As a result, governments and organizations in many provinces offer secured loans, or even subsidized interest rates and credit mediation facilities, to qualifying young entrepreneurs. to keep a growing business, at the same time as managing landlord on time. While tight credit conditions were particularly risk aversion and imperfect information on young business expansion. Unless the entrepreneur has a stockpile of entrepreneurs establish a line of credit with their bank, in there is a clear need for bank credit among young entrepreneurs in the scale-up phase of their business, and an important role for policy in driving facilitation. credit moving4
- 43. 28 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Trade and Industry, Republic of South Africa website, http://www.dti.gov.za/sme_development/ — has softer economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality. women and young entrepreneurs. It has a national footprint. It is one initiative among several led by the National Department of Trade Investment for the Government of South Africa that brings Samaf and several other institutions, like the National 51 52, it brings together a wide range of products and services comprising loans, and non-cash incentive grants that play an enterprises. Performance: For the 2011-12 period, Samaf disbursed of loans and grants. About 68% of the loans by the FIs to the end users were in rural communities and 93% were micro-enterprise The total number of end user borrowers increased by 53% to 62,459 in 2011-12 from 40,726 in 2010-11. Finance, Samaf and the Industrial Development Corporation micro and medium enterprises. This led to the creation of about 19,853 direct jobs during the period. — has softer economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality. Young people in India tend to be excluded from entrepreneurship opportunities as commercial banks traditionally steer away from them. Recognizing that a lack of adequate credit at reasonable interest was a deterrent, the Government launched a Credit Guarantee fund scheme for micro and small enterprises In 2007-08 under the terms of the scheme, Bharatiya Yuva two of India’s largest banks, Bank of Baroda and the India Bank each entrepreneur’s business performance and provides in partnership with the business community. The key recommendation is to create a new class of loan for targeted funding to meet expansion capital needs. Actions for policymakers: • For the Ministry of Finance or Commerce to establish and access. • Provide loans particularly focused on propelling startup that do. • offering targeted funding from banks. • creating new jobs for young people. • Provide intensive skills-based training and bank funding for young entrepreneurs. • Boost female-led start-ups by providing government funding. Performance: Between 2013 and the present, 426 young entrepreneurs have been supported. At the end of three years, increase their initial investment by a factor of three. On both measures, BYST achieved average ratios of 1:10 in 2014 of all its entrepreneurs supported to date.
- 44. 29Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 International Finance Corporation website, http://www.ifc.org/wps/wcm/connect/industry_ext_content/ 54. 10,000 Women website uropa website Inside Europe website, http://insideurope.eu/taxonomy/term/157, 24 July 2013. Shell liveWIRE news, http://www.shell-livewire.com/home/newsevents/news/shell_ksa_and_scb_join_ programme/1244710409.619/, accessed 28 May 2014. Arabian Business website, http://www.arabianbusiness.com/scsb-give-23m-415-smes-515375.html, 27 August 2013. 61. Qredits website, www.qredits.com, accessed 23 June 2014. — has stronger economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality. — has softer economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality. 60 — has softer economic growth and lower quality jobs for youth. and focus on closing the skills gap and improving employment quality. There is a major credit gap problem throughout Latin America: funding, compared to the easier task of their male counterparts. worldwide “Banking on Women” program, the International entrepreneurs in Brazil.53 Performance: There are over 150 women-owned businesses cited on the program’s website.54 1. entrepreneurs graduating from the Intilaaqah KSA program (an enterprise training program to equip young Saudi SCSB’s loans packages range from SAR500,000 58 Performance: Since 2010, Shell Intilaaqah has trained over 7,500 Saudis, who have between them started 665 enterprises and created 2,174 jobs. 2. The SCSB undertook another initiative last year to help young entrepreneurs to start their own businesses, by lending them and new enterprises and offers a coordinated approach to free loans, the bank offers coaching and mentoring. Performance: 59 ,61 the Netherlands’ only national microcredit institution, inclusion of Dutch micro-entrepreneurs who have a viable created with the support of national banks, which refer potential and also with the referring bank. Performance: signed an agreement in Milan in January 2014 to provide a credit line to support youth employment and small and medium 55 Performance: 56 channeled by the UBI Group’s network banks to Italian start-ups, which create new jobs for young people in the 15 to 29 age as support.57
- 45. 30 Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 Tax and regulation Targeted tax incentives are vital in fostering high-performing enterprises. Furthermore, authorities view these incentives as a way to reduce unemployment rates among the young generation. Key recommendation #1 is to encourage investment in start-ups Actions for policymakers: • Identify and encourage investment schemes best able to target support on youth entrepreneurs. • Develop tax incentives to support and advance these schemes. • Develop tax incentives to encourage youth job creation. The EY G20 Entrepreneurship Barometer found a clear consensus that the tax and regulatory systems are far too entrepreneurs can focus on running their businesses rather than being caught up in administration. There was also strong support for tax incentives to encourage the entrepreneurs to start their businesses and for their investors to provide the necessary capital. Government support also needs to be concentrated where it is most effective, for example at the start-up phase, Furthermore, international mobility and market access standout. In fact, there is a direct link between internationalization and the 62 For fast-growing, young imperative to driving market growth and business sustainability. to markets,” European Commission’s Directorate General for Enterprise and Industry website, http://ec.europa.eu/enterprise/policies/sme/market-access/index_en.htm, last updated 2 April 2013. Targeted tax and business incentives are highly important to supporting young entrepreneurs in scaling their businesses