By Anzisha
Introduction
Africa has the youngest population in the world, with an estimated 200 million people between the ages of 15 and 24, according to the African Economic Outlook report. But despite fast economic growth over the past decade, many youths still struggle to find productive employment. Unless these young people can be put to meaningful work, the demographic dividend can easily turn into mass frustration and unrest. Entrepreneurship has an important role to play in creating employment.
The goal of the Anzisha Youth Entrepreneurship Survey 2016 is to provide a snapshot of the realities facing young entrepreneurs in Africa. It focuses on five areas of operating a business, namely (1) Growth, (2) Sales and marketing, (3) Human resources, (4) Funding and (5) Support. It is intended that stakeholders such as policy makers, support organisations, and entrepreneurs themselves will benefit from these insights. With a relatively small sample size of 101, the survey does not purport to be a scientific study. However, the results can be seen as indicative of broader trends and attitudes.
Growth
Following years of rapid economic growth, many African countries are facing headwinds in the form of falling commodity prices, less accommodative global financial conditions and a strong US dollar. However, the entrepreneurs who participated in the survey are overwhelmingly upbeat about the future of their companies. Some 79% indicated they are “very positive”, while the remainder said they are “somewhat positive”. None expressed any negative sentiments.
Funding is by far the greatest impediment to growth, with 48% of respondents highlighting it as the biggest obstacle to expanding their companies. Interestingly, only 3% of respondents cited technological change affecting their industries as the largest challenge. This is surprising given how technological innovations – such as Airbnb and Uber – are disrupting traditional industries across the world.
The vast majority of those surveyed are currently only doing business in their home markets, therefore missing out on regional and global opportunities. Only 14% indicated they export their products/services. This suggests a need to make young entrepreneurs more aware of the opportunities to sell their products/services internationally, especially in other African countries. With initiatives such as the Tripartite Free Trade Area, momentum for greater regional integration is gathering steam, and it is likely to become easier for African countries to trade with one another.
Source:Anzisha
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