Entrepreneurs key to boosting youth unemployment

SMEs have the potential to create 10 million youth jobs across the G20 countries, according to new research by management consultancy Accenture. The study, The Promise Of Digital Entrepreneurs, analysed the opinions of over 1,000 entrepreneurs in an effort to identify the barriers that currently limit their potential to create jobs and grow their national economies. While 85% of entrepreneurs surveyed believed they play a vital role in creating jobs, 74% said they planned to recruit young talent in 2014. However, of the barriers that prevented them from making those new hires, 62% cited the lack of availability of appropriate skills and 54% lack of incentives. Another 54% cited access to finance. Other barriers included scaling and sustaining innovation and growing internationally.

“While there is no simple solution to the challenge of youth unemployment, this study provides evidence to suggest that entrepreneurs can play a vital role in reinvigorating job creation,” says Bruno Berthon, Managing Director for Cross-Industry Strategy within Accenture Strategy. “Digital technologies are enabling and accelerating entrepreneurship, and in many cases, the legislative and regulatory environment is struggling to keep pace. Countries that are able to foster and support entrepreneurs will be better positioned to create jobs, restore growth and enhance the overall quality of life for their citizens.” Mr Berthon also believes that companies seeking growth would do well to focus on innovation and overseas trade. “This underscores the importance of policies that support risk and enterprise as a route to sustainable economic recovery.”