Youth form an important and distinguished part of society because of their strength and vitality. They are a power that cannot be ignored, since they are the pillars of the future. However, the definition of the term ‘youth’ varies from one country to another depending on specific socio-cultural, institutional, economic and political factors. The general practice is that youth’s rights should be judged on three key areas: Provision, Protection and Participation. Similarly, the key areas of Right, Respect and Responsibility are core values that guide youth.
Across most developing countries, unemployment rates are highest among people just out of college. In the context of Nepal, there are 6.131 million youth aged 15-29. This accounts for 26.2 percent of the total population, of which 11.4 percent are out of work. Clearly, we need to do something to address this problem.
Every year, around 3,50,000- 4,00,000 youth enter the job market in Nepal. But due to lack of employment opportunities, only 10 percent are absorbed in the domestic market, and more than 700 youth leave the country every day, seeking study and/ or work opportunities abroad. When young women and men do not find job opportunities, they are more likely to feel excluded from the society and lose their self-esteem. The youth in Nepal have constantly been disheartened by the nation that has given them nothing but disappointment, instability and inefficient government administration. Political exclusion of youth is another reason for young people feeling neglected. In our country, political parties remain dominated by older officials who may not understand the needs and concerns of youth, and are unwilling to seek out the views of young people.
PHOTO: 4.BP.BLOGSPOT.COM
Every Nepali youth has one of these three dreams: apply to US and European countries for educational and residential opportunities, fight for jobs in the government sector, or fly to the Middle East or Malaysia to work as low-wage earners. Few venture into their own small and medium scale businesses. Policymakers often talk about increasing the number of young entrepreneurs. But first, developing policy to increase youth entrepreneurship requires an understanding of why young people tend not to start their own businesses.
One common explanation is that today’s youth are not as interested in business ownership as their parents and grandparents had been. What do our parents wish? Mostly, for us to have a good job and to be a great person. Very few of them wish that we became entrepreneurs, ran our own businesses and hired people. Many will invest to send their children abroad to work, but will not give money when these youths intend to start a business in their home country. Our social structure is thus leading us to become employees rather than employers.
Second explanation is that interest in entrepreneurship increases with age. Several reports show that as people get older, they become less likely to want to be self-employed, but more likely to actually go into business for themselves. This may be because many people lack vocational training and practical education to start a business at an early age.
Third explanation is that young people don’t have enough money to start businesses, because the vast majority of businesses receive no startup capital from anyone other than the founder. Moreover, many of the sources of financing available to entrepreneurs like personal borrowing, personally guaranteed loans, and personal credit cards are much easier to get if one is older. There is a lack of trust in the youth, resulting in limited opportunities for them.
Fourth explanation is that young people generally do not have sufficient technical expertise to start businesses, and themselves are generally more interested in a paid job in the formal sector. For instance, we are taught to grow potato and sell it at Rs 20 per Kg commercially, but we don’t know how to sell potato chips at Rs 45 per packet, made from less than 250 grams of potatoes.
Recently, I read the report of Youth Survey of Nepal 2012, which stated that 85.6 percent of the youth surveyed were interested in starting their own business. Focusing solely on building awareness and interest in entrepreneurship as the way to increase youth entrepreneurship is misguided. Youth entrepreneurship is deterred by uncertain market, political instability, geographical barriers, and lack of capital, appropriate education and sufficient interest. Karna Shakya, founder of Kathmandu Guest House, stated: “I feel very pleased to see so many entrepreneurial brains in Nepal these days. I find many youngsters pursuing entrepreneurship.” However, many entrepreneurs are still unwilling to operate in a lawless and unpredictable environment. Nepal is not really resource poor; but it suffers from the poor management of these resources.
Youth don’t have enough money to start businesses, because sources of financing like loans are not easy to secure unless one is old.
Of the two big constraints on youth entrepreneurship, the access-to-capital problem is easier to solve. Special programs could be designed to provide capital to young would-be entrepreneurs. The problem of lack of experience is more daunting. Because much business knowledge needs to be learned by doing, there is no good substitute for experience in preparing people to become entrepreneurs.
The Federation of Nepalese Chambers of Commerce and Industry has promoted the Nepali Young Entrepreneurs’ Forum and National Youth Business Forum with the aim of creating entrepreneurship through exchange of ideas, fellowship, education, training and advocacy among the youth. The performance of much awaited Youth and Small Entrepreneur Self-employment Fund is not satisfactory due to the change in government and lack of clear policy. More than 6,22,000 youths have applied to the program across the country. But the program has only employed 3,000 youths in the past three years, and it has the target of making 50,000 youths employed in the current fiscal year.
The National Youth Policy 2010 has recognized this, and has placed special emphasis on entrepreneurship and vocational education. However, the implementation of this policy seems severely deficient. The Youth Survey of Nepal, 2011 reported that vocational centers were inaccessible and rigged with nepotism, their quality was not up to the standard, and the training duration was hardly sufficient. Recently, Nepal Youth Forum 2013 concluded with the demand for immediate implementation of National Youth Policy 2010, with primarily demand of Employment Promotion Board.
Entrepreneurship is an employment strategy that can lead to economic self-sufficiency for people. Entrepreneurship education seeks to prepare people, particularly youth, to be responsible and enterprising individuals who become entrepreneurs or entrepreneurial thinkers by immersing them in real life learning experiences where they can take risks, manage results, and learn from outcomes. Kenya is a successful example where all public schools will be teaching agribusiness entrepreneurship by 2015, according to a government report. This will be a Vision 2030 project that seeks to promote agriculture as a key pillar of the economy. The government is seeking to encourage the youth to engage in smallholder agribusinesses for economic empowerment. For us, it is very important to radically change both primary and secondary methods of teaching, and to improve the standard of university education so that we encourage our bright kids to stay here and run their business.
Unless the youth are brought into the mainstream, we will fail to bring economic prosperity in the country. Youth need to be the main focus of government, so that their voices can be heard and heeded in the policymaking process.
The author is Nepal Representative to Young Professionals’ Platform for Agricultural Research for Development
ypardnepal@gmail.com
Related story
RSP Chair Lamichhane’s campaign event barred in Nawalparasi Wes...
