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
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.
The Missing Entrepreneurs 2019
Policy Brief on Recent Developments in 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