In July 2014 over 400 of the world’s best and brightest young entrepreneurs, leaders and change makers gathered in Sydney to participate in the G20 Young Entrepreneurs Alliance Summit and to support the Australian G20 priorities on private sector led growth and greater resilience of the world economy. The summit participants called 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 entrepreneurial SMEs, young entrepreneurs and enhance private sector led growth.
In 2010 an unprecedented new global network was created, the G20 Young Entrepreneurs’ Alliance (G20 YEA). The Alliance is a collective of leading entrepreneurship NGOs representing over 500,000 young entrepreneurs across G20 countries and the European Union. The Alliance is working to promote youth entrepreneurship as a solution to the challenge of economic renewal. The Alliance believes that this global movement – and the energy and dynamism it will generate – can transform societies and economies.
At the YEA summit in Sydney, EY report was presented, entitled “Avoiding a lost generation – ten key recommendations to support youth entrepreneurship across the G20” (http://www.ey.com/Publication/vwLUAssets/EY-Avoiding-a-lost-generation/$FILE/EY-G20-youth-unemployment.pdf ). The report, put together in collaboration with the G20 YEA, identifies and analyzes the different youth unemployment issues faced by countries across the G20 and seeks to offer actionable recommendations, as well as providing examples of successful entrepreneurship schemes and policies already in place. The G20 YEA summit will feed recommendations into the G20 Leaders’ Summit taking place in Brisbane in November, which has a clear focus on global employment.
Youth unemployment remains high, at 16% across the G20 nations. Encouraging entrepreneurship is widely seen as one of the solutions to the problem, thanks to the jobs a vibrant entrepreneurial organization can create. Indeed, recent EY studies show that entrepreneur-led businesses will create more jobs than large corporates over the coming year – with 76% of entrepreneurs saying they’ll expand their workforces in 2014 compared to 31% of senior executives at large corporates.
The report includes analysis of schemes currently in place across the G20 and beyond to develop 10 key recommendations for action presented to the G20 YEA Summit, these are:
1. Create funding mechanisms, either government run or government backed, that make mentorship and financial education a condition of funding.
2. Create strong relationships, and provide incentives, with venture capitalists, incubators and business angels to develop or create initiatives that enable alternative sources of capital.
3. Sponsor start-up growth with low-cost funding for targeted groups.
4. Create a new class of loan for small businesses and young entrepreneurial firms that offer targeted funding to meet expansion capital needs.
5. Encourage investment in start-ups by offering tax benefits.
6. Encourage top international talent by changing visa rules and offering funding support.
7. Simplify and streamline tax administration to ease administrative burdens on young entrepreneurs.
8. Create a positive narrative around entrepreneurship to help engage young people from an early age.
9. Encourage and foster hubs, incubators, accelerators and networks to bring relevant talent together.
10. Create the foundation for a regional entrepreneurial ecosystem to flourish.
In 2013, the YEA Summit was held in Moscow, Russia. http://www.ey.com/GL/en/Newsroom/News-releases/Access-to-funding-top-imperative-for-G20-entrepreneurs
More information available here:
YEA Summit Home Page http://www.g20yeasummit.com/