Context: The youth unemployment rate in New Zealand, at 15 per cent in 2014, was nearly three times greater than the overall unemployment rate, indicative of youth specific barriers to finding work. This youth unemployment rate is also 67 per cent higher than it was 7 years ago, exacerbated by a significant decrease in real hourly wages over the last 5 years. Given the fact that companies with less than 50 employees generate nearly half the jobs in New Zealand, and small and medium sized enterprises account for 97 per cent of all enterprises, the potential market conditions exist for promoting youth employment through entrepreneurship. However, only minimal support for entrepreneurship capacity building exists, with a limited number of initiatives specifically focused on providing youth with the skills, knowledge and tools they need to start and develop their own business.
Implementation of programme/ initiative: The Young Enterprise Trust in New Zealand is a charity that aims at encouraging youth entrepreneurship and building the capacity of youth and teachers, including through networking events, mentorship programmes and scholarships. The Trust works alongside businesses and organizations, such as the Lion Foundation, to provide innovative opportunities which help young people in New Zealand start their own businesses. In addition to capacity building programmes, the Trust also facilitates entrepreneurship focused competitions to motivate and inspire youth. Youth in grades 1 to 13 (age 5 to 17) are supported by the Trust, offering enterprise related information and training to cultivate an entrepreneurial mind-set from a young age. The Trust funds its operations through a mix of grants, sponsorships and private donations, which in 2015 amount to approximately NZ$2.5 million.
Main challenges: As with many non-profit organizations, financing is an issue. To minimize financial difficulties, the Trust draws on multiple sources of funding including corporate sponsorship, government agencies, community foundations, fees and sales, private foundations, international contracts, individuals and interest groups. Another key challenge the Trust has faced in recent years is how to increase the level of support provided. Many of the schools the Trust partners with have voiced interest in including and expanding youth entrepreneurship education but have reported that they do not have adequately trained staff nor the financial resources to provide professional development. To fill this gap, the Trust has organized workshops at schools where an experienced instructor has shared her/his experience teaching entrepreneurship. An online toolbox has also been introduced as another way to spread knowledge about teaching youth entrepreneurship with readymade materials and tools that teachers can incorporate into their entrepreneurship curriculums.
Results achieved: Between the years 2014 and 2015, the Trust increased the number of schools it partnered with by 14 per cent and the number of teachers they worked with by 18 per cent. From a survey conducted with 500 students that participated in “The Lion Foundation Young Enterprise Scheme” in 2015, 92 per cent reported improved confidence and 75 per cent were more interested in starting their own business as a result of the programme.
Moving Forward: Based on the current success of the Trust’s digital strategy and Roaming Teachers programme, expansion is planned in the coming few years. The Trust aims to refine the organization of the resources in the online toolbox as many users currently only access a fraction of all available resources on their website. In addition, the Trust plans to hire three additional roaming teachers in 2017 to further expand access to the programme. Furthermore, the Trust will investigate strategies for broadening access to students beyond only those who have participated in the Lion Foundation Young Enterprise Scheme. In 2016 and 2017, for instance, the Trust aims to introduce interactive resources to engage additional students, such as online learning modules.
Replicability: The Youth Enterprise Trust has facilitated the development of a supportive entrepreneurship ecosystem by organizing youth entrepreneurship competitions and empowering educators with the resources they need to teach entrepreneurship in schools. Furthermore, the Trust has utilized both in-person training and an online toolbox to widen coverage and capitalize on ICT advancements.
References:
Young Enterprise Trust, “Inspiring Students, Changing Lives,” Annual Report, (Wellington: Young Enterprise Trust, 2015), available from: http://youngenterprise.org.nz/assets/Uploads/2015-Young-Enterprise-Annual-Report.pdf
Mary Jo Kaplan, “Growing the Next Generation of Social Entrepreneurs and Start-ups in New Zealand,”(Wellington: Fulbright New Zealand, 2013), available from: http://www.fulbright.org.nz/wp-content/uploads/2013/08/axford2013_kaplan.pdf
Project Details
Date: September 22, 2016