G20’s young entrepreneurs are increasingly interested in digital technologies but not happy with their nations’ innovation development policies.
The G20 Young Entrepreneurs’ Alliance (G20 YEA) summit, attended by more than 400 participants, has ended in Moscow. During the Summit, young entrepreneurs from the world’s top 20 economies discussed best international practices and solutions aimed at building new jobs, introducing innovations, increasing economic growth and competitiveness.
The Summit formulated recommendations to promote youth entrepreneurship that will be passed on to the B20. Their objective is to emphasize the role of youth entrepreneurship as a dominating force for strong, sustainable and balanced growth, the central subject of the G20 leaders’ summit to be held in St. Petersburg in September of this year.
The recommendations summarized in a final Summit communique primarily focus on the following:
Two key reports were unveiled at the Summit providing the latest survey data on the state of entrepreneurship around the globe and recommendations for G20 governments to support entrepreneurs:
“Young entrepreneurs are digital entrepreneurs who know that technology goes beyond geographic and sectorial boundaries and helps them rapidly scale their businesses to reach markets that, until recently, only large organizations could touch,” said Accenture’s Bruno Berthon. “These entrepreneurs are in the best position to accelerate the move to mass customization and to create entirely new categories of products and services through technology. It is vital that policy makers understand that, for young entrepreneurs, all markets are de facto emerging markets and that small digital enterprises have choices as to where they locate and do business. They are also an important part of achieving economic inclusion and resilience at both individual and community levels”.
Maria Pinelli, Ernst & Young’s Global Vice-Chair of Strategic Growth Markets: “Our report ‘Avoiding a lost generation’ highlights key imperatives for G20 governments to better support entrepreneurs and solve problems of growing unemployment among young people. The 1,000 young entrepreneurs we surveyed across the G20 highlighted that despite relative optimism about their economic future and their own ability to create new jobs, there was broad consensus that greater support was needed to deal with current challenges, including access to funding, support and reducing red tape. When asked about their main frustrations, 73% say access to funding remains difficult in their countries. 51% of entrepreneurs would also like to see government programs that provide education, funding and raised profiles, which they believe could have a big impact.
Information about Moscow and the whole of Russia was presented at the Summit, too. Alexei Komissarov, Head of the Moscow Department of Science, Industrial Policy and Entrepreneurship: “The potential to develop an entrepreneurship environment is yet to be fully utilized. In Moscow, medium and small businesses, microbusinesses and individual entrepreneurs provide about 2 million jobs, around one-third of all jobs in Moscow. In Russia, small businesses need a lot of assistance in terms of access to funding, in educational programs, in creating conditions for innovative business development; but above everything else, it is essential that entrepreneurship should be made more popular. This is one of the most effective tools to increase the small business share in the gross regional product and engage a larger number of residents in it.”
Victor Sedov, President of the Center for Entrepreneurship, a founding member of the G20 Young Entrepreneurs’ Alliance from Russia states: “The development of youth entrepreneurship and human capital is the main factor in innovative economic evolution and improvement. The communique recommendations are indicative of the problematic issues shared by all the economies of the Alliance. The economy is undergoing structural changes, with a tendency towards individualized production: creating new products designed for a specific consumer and using new innovative approaches. The role of small businesses is growing – young people are more susceptible to innovations. This requires the skills of running your own business as well as subject-related knowledge. Regretfully, our level of training in basic entrepreneurship and risk management skills in learning institutions’ curricula leaves much to be desired, and the number of young people wishing to start up their own business is very small. What is required are changes on a strategic level, shaping the right entrepreneurial culture in addition to fundamental education.”
For additional information, call the Summit press center: