The Importance of Youth Entrepreneurship (and How You Can Support Young Entrepreneurs in 2022)
Ahead of the G20 2021, hundreds of young entrepreneurs gathered in Milan, both in-person and online, to share their ideas and concerns with representatives from the world’s top 20 major economies. The topic at hand? How young entrepreneurs can better be supported by both governmental and business organizations in 2022.
“Young entrepreneurship” might seem like a catchy buzzword or the domain of San Francisco startups, but there’s a reason the G20 Young Entrepreneurs’ Alliance gathers every year: young entrepreneurs are critical to driving economic growth and development.
Each year, new businesses are responsible for creating the majority of new jobs added to the labour market. During past crises, such as the 2008 recession, they’ve also helped dampen the effects of financial squeezes, remaining positive sources of employment growth (while more established businesses laid off more than they hired).
Spurring youth entrepreneurship means continuing to drive economic growth — while also ensuring that fresh and innovative ideas are continually entering established markets. With millennials and Gen Z also showing increasing commitment to championing ethical brands, we can also expect young founders to place a premium on creating sustainable, socially impactful businesses.
But young entrepreneurs need support. And at the Young Entrepreneurs’ Alliance in Milan, they shared that call for support in their communiqué, calling on governments and businesses to better support young entrepreneurs.
“The G20YEA was energizing and gathered innovation from around the world,” says Ingrid Sollner, Chief Marketing Officer of TEHTRIS. “I hope the coming months will bring more confidence. The keys for driving change are in the hands of young entrepreneurs and SMBs.”
We’ve rounded up the YEA’s calls to action below, including commentary from some of the world’s leading YEA members and entrepreneurs.
1. Continue to address the barriers to growth young entrepreneurs face.
Young entrepreneurs today face a multitude of challenges when it comes to starting and scaling their ventures — challenges that stop some entrepreneurs from striking out at all, or force others to shut their doors too soon. Single mothers may choose to return to full-time jobs due to a lack of affordable childcare or healthcare. Some Black founders, receiving only 1.2% of all venture capital funds, may not be able to outcompete well-funded competitors, who can afford to chase growth over profitability.
“It is important for private companies to take the Communiqué into just as much consideration as the government,” says Ghalia Aamer, CEO of TalkMaze and a YEA delegate from Edmonton. “Change will only happen if private and public institutions work together.”
There are a few ways that the YEA says governments and businesses can help — from dismantling the barriers to capital that startups routinely face to increasing digital literacy and promoting digital upskilling.
“My business is carving a new path in an industry that is new and quickly evolving,” says Amanda Cupido — founder of Lead Podcasting — on the importance of dismantling barriers to growth. “Taking businesses like mine into account is important since we tend to fall through the cracks! Ontario's Workplace Safety and Insurance Board didn't even know how to categorize my business when I called them. I'm glad to have been able to speak on behalf of emerging businesses and industries.”
2. Encourage multi-sector innovation and the upscaling of startups.
To encourage increased collaboration between startups, the private sector, and the government, there need to be more connections between private and public enterprises.
“It is important to know that we are not alone, because sometimes entrepreneurship can be difficult, but together we will go further!” says Isabelle Leblond, founder and CEO of Happy Hotels.
The YEA calls for a global support structure for small and mid-sized enterprises (SMEs) that can address the financial and contractual barriers to protecting intellectual property; increase access to international markets; and spur partnerships between private and public institutions.
“This year’s hybrid G20 YEA Summit exemplified how technology, more than ever, connects us with important people in our lives and increases international business opportunities,” says Audrey Charles, founder of Convenient Business Solutions. She explains how increased partnerships would benefit new and established entrepreneurs alike:
“Our digital connection has paved the way for seamless multisectoral and multinational collaboration. Although I have plenty of wisdom to share, I also have lots to learn from the next generation of entrepreneurs. Now more than ever is our opportunity to champion young business ventures and provide additional opportunities and support for their growth and sustainability.”
3. Ensure equal access and opportunities to participate in the economy and entrepreneurship.
In order to ensure that a country has diverse and representative leaders at the helms of its businesses, governments need to ensure equal access to opportunities. That means increasing representation within all decision-making government bodies, helping women return to the workforce post-pandemic, and providing equal opportunities to education.
“Many women owned businesses need unique forms of support — globally, the pandemic exacerbated the differentiated impacts of gender inequality,” says Angela Wallace, founder of the Angela Wallace Impact Agency. “Issues like limited access to affordable quality child care for mothers became a glaring example of the barriers some women have to overcome to build their businesses. As Mulala Yousafzai has said, ‘We cannot all succeed if half of us are held back’.”
Importantly, people’s access to opportunities needs to be equitable, not just equal — meaning that governments need to take into account the varied types of support different groups might need to meet one another at the starting line.
4. Enable entrepreneurs to partake in an inclusive green economy.
Young people are supporting and starting purpose-driven businesses at record rates — but, the YEA says, they can’t do it alone.
“Young people are innovators who drive change and bring creative ideas to the table; but we're also only half of the solution,” says Candies Kotchapaw, executive director of Developing Young Leaders of Tomorrow, Today. “The other half are current world leaders and governments who have the ability to put these big ideas into action.”
There’s perhaps no bigger area where government leadership is needed more than in creating an inclusive green economy. To do so, governments should explore how they can better monitor the private sector’s socio-environmental impact, guide companies in the transition to a circular economy, and support the creation of greener supply chains.
“The G20 YEA 2021 Summit Communiqué is breathing life into a greener, innovative, equal and more inclusive world,” says Nicholas LaValle, founder of Clean Valley CIC.
Commit to supporting the Communiqué
The full communiqué from the YEA can be found here — and there are a few ways you yourself can support young entrepreneurs’ call to action. Whether you’re an entrepreneur, politician, or work within a well-established company, there are plenty of ways you can help move the needle — from implementing mentorship programs at work to ensuring racial and gender diversity on boards.
“Our communiqué is a blueprint to achieve these milestones,” Umar Rehman, founder of Sapience Consulting, says.
The Canadian delegation is led by Futurpreneur. Futurpreneur Canada has been fueling the entrepreneurial passions of Canada’s young enterprise for over two decades. They are the only national, non-profit organization that provides financing, mentoring and support tools to aspiring business owners aged 18-39. Their internationally recognized mentoring program hand matches young entrepreneurs with a business expert from a network of more than 3,000 volunteer mentors.
Curious about what else you can do to unlock your brand’s purpose and join the future of conscious capitalism? Reach out to Ange for a free consultation call.
© Angela Wallace Impact Agency 2021
Authored by content co-conspirator Kenza Moller: professional story-telling for impact-oriented companies, agencies and thought leaders.
