entrepreneurship: a solution to european youth unemployment

A Solution for European Youth Unemployment

Entrepreneurship

Dr. Peter VogelPeter Vogel Strategy ConsultingSwitzerland

Mail [email protected]: @pevogelWeb www.petervogel.org

EU28 Youth Unemployment

3© Dr. Peter VogelOctober 14th, 2016

+ 58%

Yout

h U

nem

ploy

men

t Rat

e

Youth-to-Adult Unemployment Ratio


Data: OECD, 2015


Some more facts Most statistics ignore the NEETs (neither in

employment, education or training) In the US, 15% of youths are NEETs In the EU, the NEET rate increased by 2%

over crisis up to 17% in 2013, with Greece’s NEET rate at 30%

ILO: “The youth unemployment rate (12.6% in 2013) would be a full percentage point higher if it included the NEETs”

e

10million

unemployed youths

Snapshot Latin America (total youth: 106 million)

million youth that

neither work nor study

million youth work in informality

Youth (15-24) Unemployment Indicators

1.2 billion youth worldwide = 17% of total population75 million are unemployed = 40% of total unemployed

Data Sources: ILO, OECD, Eurostat, World Population Prospects

30

22

Major (largely ignored) Issue: NEETs


Data: Eurostat

Drivers of the Youth Unemployment Crisis


Demand Side Low aggregate demand

Inflexible labor markets / temporary jobs

Informal recruiting inaccessible to youth

False expectations of employers

retirement age keeps older workers

Supply Side Lack of preparedness for work Lack of adequate skills and experiences Academic inflation Characteristics / attitude towards work Rise of youth population in some regions False expectations of young people

Mismatches Skills / capabilities mismatch

Over-qualification

Under-qualification

Regional differences (developed vs. developing)

Expectations mismatch

What if We Don’t Find Adequate Solutions?


Individual Consequences Scarring effect on the person’s human-

and social capital Negative life-long effects on earnings Negatively influences psychosocial

development and overall well-being Prevents young people from developing

adequate work ethics Difficulty of young people to become

independent from parents Forces young people to accept part-time

or temporary employment Increases chances of subsequent

unemployment

Societal & Economic Consequences Waste of economic potential Threat of an undermined social stability Brain drain towards countries with better

job opportunities Loss of tax earnings for countries Increased criminality rate and anti-social

behavior, requiring more security

It is estimated that joblessness in the United States alone will account for a total of $20 billion in lost earnings over the next ten years Jacobs, 2014


Title & Initiator/Proposer Chapter Title & Initiator/Proposer Chapter4.0 Schools 5 Labster 5Aiducation 5 Leadcap 5Apple Distinguished Educator 5 Leaders of Tomorrow 8Arab Stabilization Plan 7 LYNX 6Arabreneur 4 Maker Education Initiative 5AshokaU Changemaker Campus 5 Makerbot Academy 5Barclays Apprenticeship Program 6 Manpower Programs 6Beyond the Classroom 6 Microglobal Age 8Build Your Own Business Curriculum 5 Mobile Schools 5Career Integrated Learning Project 5 MoneyThink 5ccInspire 6 Monkeywrench 5Cedefop 5 Nearpod 5Ciett 7 Nestlé needs YOUth 6CodeNow 5 NFTE 4Coderise 5 Open University of West Africa 5Coursera E-Learning Portal 5 Operation HOPE 4Credit Suisse Apprenticeship System 6 P21 Initiative 5D.schools 5 Peruvian Action Plan for Youth 7Dar Blanca Radio 4 Piggybackr 5DevEd 5 Project H Design 5Diageo Apprenticeship Program 6 Project Leonhard 4Die Chance Foundation 6 Quest University 5DonorsChoose 5 Reverse Mentoring 6Ecosofft 4 Sanssi Card 7Education for Employment Foundation 6 School for Startups 4Edupass 8 ShowMe 5Elgazala Technopark 4 Skillshare 5Empact 4 Skoll World Forum: Solutions 8Emzingo 5 Social Innovation Institute for Educators 5enke: Make your Mark 8 Social Ventures Australia 5Enstitute 5 Socionext 8Enternships 4 Socrative 5EU Solutions to Youth Unemployment 7 Souq.com 6Euforia 5 South African ALMPs 7Experience Institute 5 Spark Inside 8Fab Labs 5 The Big Issue 4Flexicurity Model 7 The Entrepreneurs’ Ship 4Generation Enterprise 4 The Fitzroy Academy 5Generation Success 6 The Future Project 5Global Economic Symposium Solutions 8 The Prince’s Trust 7Google for Education 5 Think Impact 5GUESSS Project 4 Tradability of Tasks 8Hackathons 5 Treehouse 6Hole in the Wall 5 UK “Youth Contract Program” 7ILO Solutions to Youth Unemployment 7 WEF Solutions 8INJAZ-UAE 4 Work Inspiration 6Integration durch Austausch 7 Working for YOUth 6Job Sharing 6 World of Warcraft in School 5Jobzippers 5 Worlds of Work (WOW) 6Jobzippers Speaker Series 4 Young Enterprise Switzerland 4Junior Achievement 5 ONEM: Self-Employment Scheme 7Khan Academy 5 Ze-Ze 8

Solutions featured in “Generation Jobless?”

Project “YouthUnemployment.Org” Website featuring a database of

solutions for youth unemployment

Community-driven approach with a review system of submitted solutions

Commenting & feedback functionality

Search & filter to find the most relevant solutions

Solutions – Multi-Stakeholder Efforts



Tomorrow’s Job Creators

Why Foster Youth Entrepreneurship


Entrepreneurship is becoming increasingly accepted as a suitable means and critical alternative for income generation among young people and a mechanism to unleash their economic potential.

3 main (not the only) reasons why to foster youth entrepreneurship. It…• …creates employment opportunities for the founders and their

employees. In the case of young people, they are more likely to hire other young people (homophily principle).

• …helps develop new skills & professional experience that, in turn, can enhance general employability.

• …revitalizes local communities through new products and services and keeps otherwise young and idle people occupied, which is always better than not having anything to do.

Evidence for Impact of Entrepreneurship


Entrepreneurship is a main driver of economic development, job creation and a country’s competitiveness.

Three supporting arguments from research:• The average net employment growth rate in the United States

between 1980 and 2005 would have been negative, if not for the jobs created by new ventures.

• Jobs created from new ventures are less volatile & sensitive to economic turbulence compared to jobs in the overall economy.

• The creation of new firms has an important effect on a nation’s political & societal stability, as it promotes social cohesion by offering the opportunity of self-employment to everyone & allows broad participation in the economy regardless of a person’s background.

Entrepreneurship Ecosystems


Source: Vogel, 2013

Let’s work together to build stronger entrepreneurship ecosystems

Thank you for your attention!


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Dr. Peter VogelPeter Vogel Strategy ConsultingMail [email protected]: @pevogelWeb www.petervogel.org

“The jobs we need to create will come neither from the big corporations nor from government, but they will come mainly from entrepreneurs who represent 66% of job creation within the OECD and 85% within the EU.” Grégoire Sentilhes, co-founder of the G20 Young Entrepreneurs’ Alliance