The Unemployed Generation
Prageeth Jayathissa (second from right) at the G20 Youth Summit.
73 million. It’s a rather large number. Especially when realising that this is the number of youth in the ages between 18-34 in 2013 without work.
This statistic comes out to represent 12.6% of the global population in the age bracket and the issues don’t stop there.
With a stagnant economy in the developed world and 660million more youth to enter the job market by 2015, there are some major societal changes that need to be addressed. And they need to be addressed now.
Unfortunately the political debate continues to revolve around issues that do not bring direct results. “The foreigners stole our jobs!” seems to be a common rant, even though the majority of migrants bring in skills that their host country lacks. Yes, there is also a global skills shortage.
This generation is unfortunate to be entering a time where countries are shifting from a product-based economy to an innovation-based economy. This means that we no longer need masses of workers, but highly skilled, and highly creative individuals.
“What do you want to be when you grow up?” the teacher asks. “A plumber, a doctor, a builder, a teacher?” This line of thought revolves around an idea of a fixed job in a linear world. A world that is still based around the industrial revolution.
The concept of innovation, in essence, is relatively absent.
That search for problems in the world and finding creative solutions is never really on the curriculum. Which is a shame as it brings about a fantastic French word, entrepreneurship.
Having more youth engaging in entrepreneurial activities is a way to solve their current unemployment and create employment opportunities for others.
Furthermore, people that are self-employed have higher life satisfaction, and may have the opportunity for a very successful life.
So what is preventing 73 million youth from taking these brave steps?
Well, there are a few barriers that need to be addressed.
1. Fear of Failure
Failure is unfortunately linked to negativity in many societies. In reality, going outside one’s comfort zone and failing often results in valuable understanding. The EU has the highest level of fear of failure where 47% of the population indicated that it would inhibit them from starting a business. It is particularly high in Greece (70%), Spain, Portugal, Italy, and Poland. Interestingly these happen to be the countries with the highest unemployment rates in Europe.
2. Financial Support
The majority of new businesses are financed through personal savings, family and/or friends. Although this is adequate for the start, sufficient capital is required for the business to grow to a sustainable level. Furthermore, it increases the fear of factor. Governmentally financed institutions such as Climate-KIC provide seed funding and coaching which is vital for the survival of many high-tech businesses. These governmental support mechanisms need to grow and should be a crucial topic of discussion.
3. Networking
While gaining access to financial capital is a first step, the access to a network is also important. Having people to feedback on your idea, provide mentorship and initiate your marketing are crucial. Keeping your idea a personal secret is often huge mistake - the idea is completely useless unless it’s made into a reality.
4. Education
Although Sub-Saharan Africa has the highest level of entrepreneurial activity; only 45% have successfully completed secondary school. Even globally there is a shortage of necessary business skills that are necessary to start a business.
5. Administrative Challenges
Only a few countries have a clear and streamlined process flow for setting up a company. The total chaos of registration, combined with the lack of education eliminates many potential businesses from being established.
So if you’re a teacher, push your pupils to be more innovative. If you’re a parent, make sure that you encourage failure. And if your friend Pete is thinking of starting a business, give him total support, as guys like Pete are the ones that can really stop an economic crisis.
And while you’re at it, check out www.ckaa.eu, just check it out. It’s a little project that we are working on to help entrepreneurs out there.
Prageeth Jayathissa is the president of the Climate-KIC Alumni Association, a network that binds highly skilled professionals from across Europe with a single focus: create solutions to combat climate change by inspiring innovation through entrepreneurship.
