Unlocking the Potential of Youth Entrepreneurship in Developing Countries

From Subsistence to Performance

image of Unlocking the Potential of Youth Entrepreneurship in Developing Countries

Demographic pressure and the youth bulge in the developing world pose a major employment challenge. This situation is exacerbated by insufficient job creation, scarce formal wage employment opportunities and vulnerability in the workplace. For these reasons, fostering youth entrepreneurship has gained importance in the global and national development policy agenda. This report aims to contribute to the ongoing debate on the role of youth entrepreneurship in generating employment in developing countries. It is based on the analysis of mixed labour force and enterprise surveys conducted in Côte d’Ivoire, Madagascar, Peru and Viet Nam, as well as evidence on the impact of entrepreneurship programmes. This report’s findings add to the global debate on youth entrepreneurship in three important ways. First, it constitutes an unprecedented effort to capture the real situations and multiple faces of young entrepreneurs in selected developing countries. Second, it provides new empirical evidence on the determinants of youth entrepreneurial performance. Third, it proposes a policy roadmap based on lessons learned from recent meta-analyses of the effectiveness of entrepreneurship programmes.

English Also available in: French

Portraits of youth entrepreneurs

OECD Development Centre

Informal and subsistence self-employed activities are the dominant form of youth entrepreneurship in developing countries. Yet only a tiny portion of youth entrepreneurs record high performance levels in terms of profits and employment generation. This chapter provides a detailed portrait of youth entrepreneurs in Côte d’Ivoire, Madagascar, Peru and Viet Nam. It shows that young entrepreneurs are numerous and are less educated than young employees. They generally enter entrepreneurship for lack of other choices, and fare worse in terms of working conditions.

English Also available in: French

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