The 2016 G20 Young Entrepreneurs’ Alliance Beijing Summit built upon the 2015 G20 Antalya leaders’ pledge to encourage entrepreneurship and address the global challenge of youth unemployment. SMEs and entrepreneurs are the main job creators in the G20 economies, employing more than two-thirds of the private sector workforce and providing more than 80 percent of net job growth.
The legitimacy of our recommendations is based upon the credibility and input of hundreds of young entrepreneurs from all G20 countries who gathered in Beijing from September 8th to 10th, 2016. It is also the product of in-depth research on the entrepreneurial ecosystem in G20 countries that our members have conducted jointly over the past several years with our knowledge partners Accenture, EY and the G20/G8 Research Group. The G20YEA communiqué is a call to action for G20 governments to focus upon entrepreneurship, innovation and entrepreneurial education to address job creation and youth employment. This communiqué is aligned with the priorities of various working groups in the B20 process (namely SME Development and Employment) and provides the following ten actionable recommendations for governments to foster a culture of supportive entrepreneurship, innovation and to support young entrepreneurs.
The G20 YEA Summit in Istanbul focused on a vital element that underpins the ability of young people to start and grow successful businesses around the world: entrepreneurship culture. We know that governments have a key role to play in fostering this culture to support and encourage young people to start their own businesses. Through engagement of thousands of entrepreneurs across our network and in collaboration with the B20, we defined our priorities for entrepreneurship. This was aided by research we conducted in partnership with the G20 YEA knowledge partners EY and Accenture to identify best practices in promoting entrepreneurship and encouraging high-potential growth firms. As a result of our alignment and work with the B20, the B20 Turkish Presidency has endorsed our commniqué.
Global structural unemployment is a crisis that disproportionately harms young people. Measures to increase youth employment and promote entrepreneurship will increase medium to long-term trend growth and productivity, thus reducing social risks. The nations of the world would improve the return on investment in education by reducing work skills mismatches.
The G20 YEA continues to endorse the G20’s call for specific, actionable recommendations to increase growth.
The young entrepreneurs of the world gathered at the Sydney G20 YEA Summit support the Australian G20 priorities on private sector led growth and greater resilience of the world economy. We call on the G20 Leaders, Finance Ministers and Central Bank Governors to focus on entrepreneurship and agree to implement policies, legislation and incentives for ecosystems that support start-ups and sustainable high growth entrepreneurial SMEs, young entrepreneurs and enhance private sector led growth.
This agreement should commit to eight specific actions to underpin the pillars of building entrepreneurship ecosystems.
There is ample evidence to say that any seriously grounded policy to reinvigorate growth and job creation should have entrepreneurship at its core, with a strong emphasis on youth. Small and medium-sized enterprises are the backbone of most economies around the globe. In 2011, the World Bank found that across a sample of 99 developing countries, almost 90% of jobs are generated by SMEs. They account for 52% of GDP and 64% of employment and, more importantly, create all the net growth of jobs, and account for the majority of hiring of youth.
Our recommendations are targeted to address specifically the most acute challenges the global economy is facing today. The legitimacy of our recommendations is based upon the credibility and input of hundreds of young entrepreneurs from all G20 countries who gathered in Moscow in June for the 2013 G20 YEA Summit. From them, we have identified a number of measures that require coordinated action on the part of the G20 leaders.
In conjunction with the 2012 G20 Leaders Summit in Los Cabcs, Mexico, more than 400 young entrepreneurs from across the G20 and Latin America met in Mexico City from June 2nd to 5th, 2012.
In our discussions, we recognized the important role that young entrepreneurs can play in addressing the priorities of the G20 Leaders as they meet in Los Cabos in 2012. At our Mexico City Summit (G20 Young Entrepreneur Summit, G20 YES) the world’s young entrepreneurs issued the following call for partnership and action to the G20 Leaders:
We, the G20 Young Entrepreneurs’ Alliance (G20 YEA), are meeting at a time when the world is afflicted by the tragedy of unemployment, particularly for the young. More than 75 million young people around the world are unemployed and this number is growing every year. Addressing this issue is critical for our economic growth and development, and the social cohesion and stability of our societies. It is crucial for us to encourage the hopes and dreams of the new generation upon which our future depends. To do so, we must put youth entrepreneurship first as the key to job creation and growth.
Our recommendations build on two years of dialogue with young entrepreneurs across the G20 and the commitment we made to our “Entrepreneurs’ Declaration” in our 2011 Nice Communique. They also reflect the extensive experience of the member organizations of the Alliance over the decades of their existence and the thousands of entrepreneurs they represent. They are also informed by the extensive research conducted jointly with our knowledge partners1 and, most importantly, the feedback from the hundreds of young entrepreneurs who gathered in Mexico City. From these sources, we have identified a number of actions that will stimulate entrepreneurial growth and job creation for youth:
We urge the G20 Leaders to recognize in their communique the importance of youth entrepreneurship as a driver for inclusive economic growth, innovation, job creation and social cohesion and to begin a process of dialogue and discovery with the world’s young entrepreneurs to move forward in these areas.
We, the G20 Young Entrepreneurs’ Alliance, are able and willing to make this contribution and work together with our governments to help ensure young entrepreneurs and their businesses can play their role in being the architects of the 21st century.
400 entrepreneurs of G20 countries, gathered at the G20 Young Entrepreneurs Summit YES summit in Nice, today officially called upon G20 Leaders to place entrepreneurship at the forefront of economic renewal.
Through the voice of their Chair, Grégoire Sentilhes, the G20 YES delegations leaders reminded that entrepreneurship is a critical engine for innovation, growth and employment, in particular for the youth, both in developing and mature countries. The G20 YES has identified more than 200 best practices successfully implemented by governments, associations and by the private sector to remove obstacles entrepreneurs are facing and strengthen the three pillars which are critical for boosting entrepreneurship: fertile “ecosystems”, specific financing vehicles for each stage of development, an entrepreneurial and risk taking culture.
The G20YES proposes the G20 leaders to recognize in their final statement the importance of supporting entrepreneurship as a vital solution to solve the current economic crisis.
The G20YES also proposes the G20 leaders to engage a collaborative process with the governments to develop the “Entrepreneurs’ Declaration” and a pragmatic action plan to boost entrepreneurship within and across all G20 countries.
The Alliance’s was signed at the end of the Toronto, June 2010 meeting and was handed over to Senior Ministers from the Canadian Government prior to the Heads of State meeting. The communiqué in brief urges action in five areas: