There is a persistent call for the youth to be engaged in entrepreneurial activity, not just as a strategy to address youth unemployment but more so to unlock the innovation and creativity that exist among young people to create new industries and transform existing ones.
The literature is rife with research done in emerging economies that addresses the question of the value of young people in entrepreneurship and the significant potential to contribute to economic and social development. It goes beyond a hypothesis.
The Youth Business Caribbean initiative and its associated Trusts play a crucial role in fostering youth entrepreneurship in Barbados and the wider Caribbean. By providing financial support, training, mentorship, and resources, these organisations help young people overcome barriers to starting and sustaining their businesses. The focus on social enterprises further enhances the potential for economic growth and development in the region. As youth unemployment remains a pressing issue, these initiatives are vital for empowering the next generation of entrepreneurs and contributing to sustainable economic development.
Other agencies including the Youth Entrepreneurship Scheme and UWI’s SEED programme in Barbados, as well as several accelerator & incubator initiatives around the region, contribute to the business support apparatus to facilitate youth in business.
Despite all this, there appears to be a widening gap in the number of young people in our communities that are unemployed and underemployed more so than starting their own businesses.
A Global Entrepreneurship Monitor report on Creating Space for Entrepreneurship to Become a Driver of Growth in Barbados – A Policy Imperative provides valuable insights into the state of youth entrepreneurship in Barbados and highlights several relevant factors that influence the entrepreneurial landscape.
The report proffered that the youth unemployment rate in Barbados exceeded 30 per cent highlighting a critical need for entrepreneurship as a means of economic self-sufficiency for young people. The high unemployment rate underscores the importance of stimulating entrepreneurship to create job opportunities. Incidentally, youth unemployment has been highlighted as a major challenge to economies in the region.
Key findings from the report include:
1. Entrepreneurial Framework Conditions:
- Barbados faces weaknesses in its Entrepreneurial Framework Conditions, which impede the full development of its entrepreneurial potential. This includes limited access to financing, inadequate support for new and growing firms, and inefficient bureaucratic processes.
- The document emphasises that societal attitudes toward entrepreneurship are favourable, but fewer Barbadians view entrepreneurship as a viable career choice compared to averages in Latin America and the Caribbean.
2. Early-Stage Entrepreneurial Activity:
- While there is a relatively high level of early-stage entrepreneurial activity among young adults, the ratio of nascent entrepreneurs to new business owners is low. This suggests that while many young people may be interested in starting businesses, fewer successfully transition into becoming established business owners.
3. Innovativeness and Growth Ambitions:
- Most early-stage ventures in Barbados are characterised by low innovativeness and modest growth ambitions. This lack of ambition can hinder the overall economic impact of youth entrepreneurship.
4. Policy Recommendations:
- The report outlines several policy recommendations to enhance entrepreneurship, including improving the entrepreneurial environment, integrating entrepreneurship into education at all levels, promoting innovative business ideas, and developing a national entrepreneurship policy.
- It stresses the importance of fostering an entrepreneurial culture and mindset among youth, which is crucial for increasing participation in entrepreneurship.
5. Education and Training:
- There is a recognised need for better entrepreneurship education at the primary and secondary levels. The integration of entrepreneurship into the educational curriculum is seen as essential for nurturing future entrepreneurs.
- At the post-secondary level, while there is some adequacy in preparation for starting businesses, further improvements are needed to enhance entrepreneurial skills among youth.
6. Societal Attitudes:
- Although societal attitudes towards entrepreneurship have shown some improvement, with more Barbadians recognising entrepreneurship as a desirable career choice, there remains a gap compared to other Caribbean countries. This indicates a need for continued efforts to promote the status of entrepreneurship in society.
The GEM research suggests that while there is a foundation for youth entrepreneurship in Barbados, significant challenges remain. Weak entrepreneurial framework conditions, low levels of innovativeness, and a high youth unemployment rate highlight the need for targeted policies and support systems. Enhancing education, fostering a positive entrepreneurial culture, and improving access to resources are critical steps needed to increase the success rate of young entrepreneurs in Barbados and ultimately drive economic growth.
Beyond the need for an enabling regulatory framework, some low hanging fruit exists that can be easily addressed to close the gap. An obvious first step is to strengthen existing agencies catering to youth entrepreneurship. This includes greater capitalisation to fund expanded programming and resources, and SMART initiative that address critical areas of development. Further improvements include incentives for innovation and monetisation – innovation and invention type national competitions can be used to start the process. A further area that has been advocated for some time by the SBA and others, is the introduction of entrepreneurial training in the primary and secondary school system. The institutionalisation of entrepreneurial learning can contribute to the cultural change needed to birth new generations of citizens.
Every effort is needed at present to ignite young people and get them involved in entrepreneurial activity as a part of the strategic direction for the country.
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