Policy brief on recent developments in youth entrepreneurship

Abstract

One of the greatest policy challenges of the past decade for European Union (EU) countries has been the youth unemployment crisis. Youth entrepreneurship policy can be part of the suite of policy actions used to help youth enter and be active in the labour market. While entrepreneurship is not suitable for all youth, some may be able to create quality jobs for themselves and possibly others. Nearly half of young people say they would prefer entrepreneurship over working as an employee. However, young people are much less likely than adults to be self-employed. Youth entrepreneurs face obstacles in the areas of awareness, skills, finance and networks for entrepreneurship. They are also often disadvantaged by their lack of experience in the labour market and lack of a credit history. This policy brief explores the scale and nature of entrepreneurship activities undertaken by youth, and describes the main barriers faced. The brief provides an overview of the main policy actions that can be used to support youth entrepreneurship, including awareness-raising activities (e.g. role models, business competitions), entrepreneurship education and training, coaching and mentoring, improving access to finance, and entrepreneurship network development.