While nearly half of youth express an interest in entrepreneurship, only 4.7% of youth in the EU (7.4% in OECD countries) were actively trying to start a business between 2014 and 2018. Those who successfully start a business tend to be more growth-oriented than older entrepreneurs. About 11.1% of new youth entrepreneurs in the EU (14.6% in OECD countries) reported that they expected that their new business would create at least 19 jobs over the next five years compared to 9.8% (13.5% in OECD countries) of new entrepreneurs overall. Yet, business survival rates for youth entrepreneurs tend to be low and few create jobs for others.

 

Youth entrepreneurs are more likely to expect to operate high-growth businesses

Share of early-stage entrepreneurs (18-64 years old) reporting that they expect their business to create at least 19 jobs over the next five years, 2014-18

 

Note:The figure shows the proportion of early-stage entrepreneurs (i.e. those invovled in setting up a new business and those that operate a business that is less than 42 months old) that expect to create at least 19 jobs over the next five years. All EU and OECD countries participated in the GEM survey between 2014 and 2018 except the Czech Republic and Malta. Several countries did not participate in the survey in every year: Australia (2018), Austria (2015, 2017), Belgium (2016-18) Bulgaria (2014), Cyprus (2014-15), Denmark (2015-18), Estonia (2018), Finland (2017-18), France (2015), Hungary (2017-18), Japan (2015-16), Korea (2014), Latvia (2014, 2018), Lithuania (2015-18), Mexico (2018), Norway (2016-18), Portugal (2017-18), Romania (2016-18), Turkey (2014-15, 2017).

Source: Global Entrepreneurship Monitor (2019), Special tabulation of the population surveys bewteen 2014 and 2018.

 

Youth face a number of key barriers to business creation and self-employment, including a lack of entrepreneurship role models (e.g. parents and teachers may not be experienced with entrepreneurship), a lack of experience in the labour market, a lack of entrepreneurship skills, low levels of savings and collateral and small professional networks.

Most countries and regions use various youth entrepreneurship policies and programmes to encourage and support youth in business creation. The approaches include entrepreneurship education, training programmes (outside of education), entrepreneurship coaching and mentoring, business incubators, and start-up financing (e.g. grant, loans, matchmaking).

Policy makers could do more to help youth entrepreneurs create sustainable businesses by supporting innovative ideas, which will increase the chances of success.

 

Further reading

The Missing Entrepreneurs 2019

Policy Brief on Recent Developments in Youth Entrepreneurship

• Background paper on youth entrepreneurship

Supporting Youth Entrepreneurship in Lithuania: A review of policies and programmes

Supporting Youth Entrepreneurship in Italy: A review of policies and programmes

Supporting Youth Entrepreneurship in Spain: A review of policies and programmes

Supporting Youth Entrepreneurs in Hungary

Supporting Youth Entrepreneurs in Poland

Supporting Youth Entrepreneurs in Portugal

Inclusive Business Creation: A good practice compendium

Policy Brief on Youth Entrepreneurship

• Background paper on youth entrepreneurship