Youth Entrepreneurship Importance: – There is much importance in youth entrepreneurship. As a result of these importances, today youth entrepreneurship has become an emerging field in entrepreneurship. In this article, we are going to discuss the youth entrepreneurship importance and how we can utilise that importance to move the world forward.
Why Understanding the Importance of Youth Entrepreneurship Matters
All those in the business world need to understand the significance of youth entrepreneurship. It goes beyond merely helping the next generation. It’s about realising how they can affect the business environment, society, and economy.
Youth Entrepreneurship: Fostering Creativity and Personal Development
- Enhances the development of life skills. Especially problem-solving, leadership, and money management skills.
- Assists in overcoming obstacles, making wise choices, and exercising confident leadership.
- One example might be launching a small IT business.
- Encourages young people’s economic freedom and empowerment.
- Bring new insights and creative concepts to the market.
- Changes in business and communication methods, as shown in the emergence of social media.
Youth Entrepreneurship: Its Effects on Society, Social Effects, and Upcoming Leaders
- Creating wealth, jobs, and paying taxes are the three main ways that youth entrepreneurship promotes economic growth and development.
- Social causes that address urgent concerns like poverty, education, or environmental sustainability Frequently serve as the driving force for entrepreneurs.
- Entrepreneurs can start companies that tackle social and environmental issues.
- Through the development of their business acumen and problem-solving skills, young entrepreneurs cultivate future leaders.
Businesses and Organisations: An Understanding of Youth Entrepreneurship
- The ever-changing target market for companies.
- Youth entrepreneurship has the potential to gain from innovative financial products or services.
- Collaborating with youthful entrepreneurs generates novel concepts and untapped markets.
- Obtaining top talent and identifying future talent.
- Supporting sustainable development, improving brand reputation, and being in line with CSR objectives.
Importance of Youth Entrepreneurship
According to the UN, sources youth are considered individuals between the ages of 15 to 24 years. Youth entrepreneurship is the entrepreneurial activity by youths to create and innovate to build products or services to recognise value around perceived opportunities. Youth entrepreneurs play an important role in countries’ entrepreneurial development. We can identify those important as follows,
- Youth Entrepreneurship Importance to Reduce the Unemployment
- Youth Entrepreneurs are the Future of the Economy
- Youth Entrepreneurship Helps to Create New Values in the Economy
- Youth Entrepreneurship Important to Sustain the Generation Development
- Youth Entrepreneur play a big part In Technology Development
- Youth Entrepreneurship Gives Youth to Become Independent
- Youth Entrepreneurship Increases Countries Investments
- Youth Entrepreneurship Important for Overcome New Challenges
- Youth Entrepreneurship Ensures Rural Development
Identifying these importances and developing youth entrepreneurship is the task that we need to do ahead of. Let’s discuss these importances or advantages one by one.
1. Youth Entrepreneurship Importance to Reduce the Unemployment
Youth entrepreneurship is important to reduce unemployment: – Unemployment is a bigger challenge that the world trying to answer in this decade. According to the World Bank reports, the global unemployment rate will be 6.2% in 2021. IMF reports It increased to 7.11% in 2022. Youth entrepreneurship is trying to solve this world issue by generating new jobs.
Also, youth unemployment is an emerging challenge in every country across the world. International labour organizations said those aged between 15 and 24 years experienced a much higher percentage loss in employment than adults between 2019 and 2020. The global pandemic is the major reason for both of these results.
If youth don’t have jobs to do, youth could create new jobs. To do that youth entrepreneurship is the key. We all know the world population increasing gradually. It reached 8 billion in November 2022. So, youth entrepreneurs need to contribute to reducing this high rate of unemployment in this challenging situation.
Read – Youth Entrepreneur Characteristics
2. Youth Entrepreneurs are the Future of the Economy
Youth entrepreneurs are the future of the economy: – There is no dought that youth are the future of our world. Thinking from an economic perspective, youth entrepreneurs are the future of the economy. Because, youth entrepreneurs contribute to the economy by job creating, increasing productivity, utilising rural resources and implementing novel innovations. The field of entrepreneurship is the best platform for youth to contribute to their families, communities, and societies more meaningfully and economically.
In this challenging world, policymakers and authorities believe entrepreneurship can help youths become financially self-sufficient on their own. Other than there is a declining trend for depending on family support or looking for government jobs. Therefore the importance of youth entrepreneurship is a high-priority area in today’s context compared to history.
Read – youth entrepreneurship examples
3. Youth Entrepreneurship Helps to Create New Values in the Economy
Youth entrepreneurship helps to create new values in the economy: – Youth are more innovative compared to adults. Globalization and digital technology help youth to be more innovative than adults. They are not afraid to break the status quo, and they are not limited to cultural barriers.
Youth entrepreneurs create new values for the economy by creating novel products and processes by building new firms. For example, innovations like Facebook, WordPress, Mozilla Firefox, and Media Catch were built by youth when they were in their young age. Today Facebook helps businessmen to market their products, and content creators to make income through their creations. WordPress helps entrepreneurs to sell their products to customers through online market spaces. Day by day youth entrepreneurs create new values for the economy through innovation.
4. Youth Entrepreneurship Importance to Sustain the Generation Development
Youth entrepreneurship is important to sustain generation development: – We can identify three generations. Those are Generation X, Y and Z. Generation X is defined as the age cohort born before the 1980s. Generation Y is typically thought of as those born between 1984 and 1996. Generation Z, those born after 1997 are next to enter the workforce.
So, we can consider Generation Z as the current youth population in the world. Generation x and y already working or are contributing as entrepreneurs to the economy. However, the youth category Generation Z is still studying or in the startup stage of their entrepreneurial career. Generation sustainability means creating equal opportunity for all these generations (generation X, Y and Z). Future generations also need to continue entrepreneurship. It means we need to build entrepreneurial skills in that generation Z as well. To sustain generation development we can do increasing entrepreneurial education opportunities and give chances to young people to do business.
5. Youth Entrepreneurs are Playing a Big Part In Technology Development
Youth entrepreneurs are playing a big part in technology development: – Youth, especially the Z generation are more capable of technology-based innovations. This is because they are more like to live with technology and they are more reliant on technology. Today we can see new content creators, especially within this Z generation.
Also, there is a growing development of fields like artificial intelligence, web development, app development, Mobile games, digital creations, VR development and robotics. Youth are more likely to engage in these fields and they already learning these things. There are massive amounts of technology-related vacancies in the world. Hope youth will grab these opportunities and we can expect a lot more technology-related technopreneurs near future.
Read – Elements of Entrepreneurship
6. Youth Entrepreneurship Gives Youth to Become Independent
Youth entrepreneurship gives youth to become independent: – Normally, Youth depends on their parents. They do not earn. There are some regulatory barriers to getting a job as a youth. Also, most of the youth are still doing their studies. Due to all these things youth are in the unemployment category and their economic contribution is very low.
Youth entrepreneurship gives these youngsters chances to contribute to the economy by producing new products or offering new services. These youth entrepreneurial activities are important to promote the strengthening of the financial position of young people. Today we can see young people become millionaires as a result of youth entrepreneurship.
7. Youth Entrepreneurship Increases Countries Investments
Youth entrepreneurship increases countries’ investments: – By creating new firms and innovating new things youth entrepreneurship helps to increase countries’ GDP growth rate by supporting national productivity. If youth are ready to perform as entrepreneurs financial sector is willing to give them some investments to help them. It can be a bank, development bank, government or any other investor.
Fund for Innovation in Development, World Bank Group Youth Summit Competition, Climate Science Olympiad, The Geneva Challenge 2022, CATAPULT: Inclusion Africa 2022, The UNICEF Innovation Fund, and The Young Social Entrepreneurs (YSE) Global are some youth funding projects that currently run in the world level.
Read – Youth Entrepreneurship Examples
8. Youth Entrepreneurship Importance for Overcome New Challenges
Youth entrepreneurship is important for overcoming new challenges:- Securing cyberspace, Economical clean energy, Sustaining land and oceans, Sustainable and resilient infrastructure, Sustainable cities, Access to clean water and sanitation, Clean air, Food security, Preparing for and containing pandemics, and Developing and delivering better medicines are some global challenges world face in next decade.
Youth are the viable generation to overcome these challenges. What we need to do is we need to give them entrepreneurial knowledge and skills to overcome these challenges. We can do it through entrepreneurial education and entrepreneurial ecosystems.
9. Youth Entrepreneurship Ensure Rural Development
Youth entrepreneurship ensures rural development: – We can identify low development levels in rural areas compared to urban ones. However it is a big opportunity for rural young people to become young entrepreneurs by using those untouched resources. We just need to give a little push to those rural youth.
This push may be entrepreneurial education guidance, financial support or maybe technical support. If we can build those rural entrepreneurs then we can make new jobs for the rural people, which can ensure their quality of life and rural development as well.
Conclusion
The importance of youth entrepreneurship proves how much we need to invest to develop youth entrepreneurship. In this article, we discussed the importance of youth entrepreneurship. We identified youth entrepreneurship’s importance in reducing unemployment, creating new values in the economy, sustaining generation development, giving youth independence, increasing countries’ investments, overcoming new challenges, and ensuring rural development.
Also, we identified youth entrepreneurs are the future of the economy and they are playing a big part in technology development. So what is your view on the importance of youth entrepreneurship? Write down it in our comment section.
FAQs on the Importance of Youth Entrepreneurship
Why is entrepreneurship important for youth?
To empower creativity, youth entrepreneurship is crucial. Also, for creating jobs, and boosting economic growth. It equips young people with skills like problem-solving, and leadership. Also, resilience, which is not just for running a business. Especially to prepare them for success in any career path. Examples like managing finances and leading a team.
What is the importance of entrepreneurship in your life as a student?
Entrepreneurship boosts creativity. It has benefits for students. Also, critical thinking, and time management. Running a side hustle can teach financial management and business basics. It paves the way for larger ventures. Entrepreneurship also helps build a network. It also provides valuable connections for future careers. It’s about learning in the real world. It’s not just all in the classroom.
Why is entrepreneurship important for girls?
Girls should follow entrepreneurship because it contests gender stereotypes. It provides economic opportunities to girls. It fosters independence, confidence, and leadership skills. It inspires others to follow suit. More female founders are needed to bring diverse perspectives and drive change in the business world. They can inspire others to follow suit. Then contribute to the overall growth of the industry.
How to empower youth through entrepreneurship?
Empowering youth through entrepreneurship involves providing education, and mentorship. Also, funding, and creating supportive ecosystems like incubators and accelerators. It promotes an innovative and risk-taking culture. Honouring the accomplishments of youthful entrepreneurs might motivate others. Especially to start their ventures, thereby empowering them.
What are entrepreneurial skills among youth?
Youth entrepreneurs possess unique skills such as creativity, adaptability, digital fluency, and strong work ethic. Also, problem-solving passion, quick learning, risk-taking, and effective communication. They are quick learners. They are willing to take risks, and can effectively market their products through social media. They showcase their digital fluency and creativity.