Throughout the world, entrepreneurship has immense contribution to driving social and economic growth. Entrepreneurs, by promoting innovation, creating new job opportunities not only for themselves but also for fellow citizens; as well as improving the standard of living, play a vital role in stimulating social and economic development.
Mainly, in the current contexts where unemployment and underemployment are rising, as well as insecure, low-paying, hazardous employment that does not result in livable wages, youth entrepreneurship is projected to be increasingly relevant.
However, to promote an entrepreneurship mindset among young people and bring about a positive impact, experts provide various policy recommendations that the government should take to lead the job creation sector effectively. Thus, the current youth employment policy needs adaptive and contextual strategies to embrace more youths in the entrepreneurship sector.
Accordingly, ministries, urban development, education, and economic development need to enhance coordination and formulate policy strategies that correspond to the different drivers of urbanization and the associated challenges and opportunities to generate sufficient jobs.
Moreover, the government needs to consider urban youth as a diverse group to ensure their specific challenges are addressed and opportunities are enhanced. The states and municipalities may need policy space to formulate effective urban youth employment strategies that correspond to their own context.
Recently, Ethiopia’s Minister of Labor and Skills, Muferihat Kamil highlighted the substantial efforts being carried out by the government to promote entrepreneurship with a view to exploit the potential of entrepreneurs to foster knowledge-based economic transformation in the country.
The Minister stated this at the Global Entrepreneur Week opened recently in Addis Ababa in the presence of high-ranking government officials and invited guests.
In her opening remark, Minister Muferihat highlighted the significance of entrepreneurship in optimizing resources and driving economic transformation.
She emphasized the importance of entrepreneurship in fostering knowledge-based economic transformation in Ethiopia.
The Minister added that substantial efforts have been made over recent years to promote entrepreneurship across the country, leading to a growing number of successful business ventures.
“Many positive outcomes have been registered and we will continue to expand these efforts this year,” Muferihat said.
Entrepreneurship can play a vital role in building a knowledge-based economy by turning immense potential into action, Muferihat pointed out, emphasizing the importance of creating enabling environments for entrepreneurs and fostering global connections through various events.
She stated that her Ministry has been working in collaboration with pertinent stakeholders to address issues of financial accessibility, ecosystem development as well as policy-related challenges for entrepreneurship.
Innovation and Technology Minister, Belete Molla, on his part, said that entrepreneurship is an indispensable approach for building a sustainable and reliable economy.
He stressed that youth-centered entrepreneurship needs to be technologically provoked for the sustainable economic transformation of the country.
Ministry of Innovation and Technology is committed to supporting entrepreneurship initiatives and empowering innovators to bring their ideas to life, Belete underscored.
The Ministry of Innovation and Technology is working hand in hand with the Ministry of Labor and Skills to create favorable policy frameworks and laws that support technology-driven entrepreneurship.
Entrepreneurship Development Institute Director General, Hassen Hussen on his part stated that the event emphasizes the creativity and resilience of Ethiopia’s entrepreneurial community.
The week-long entrepreneurship event features an exhibition and bazaar showcasing the achievements of numerous entrepreneurs, offering a vibrant platform for showcasing their work and connecting with potential customers and partners, it was learned.
A recent study on Youth Self-Employment in Ethiopia reveals that the population surge in Ethiopia over the past three decades has created a reservoir of young people for the labor market. This is particularly evident in urban areas, where the labor force grew by 11 percent per year on average. While traditionally the public sector absorbed the bulk of new entrants, as the youth population continues to grow, the decline in public employment has paved the way for an increasing reliance on private initiatives to provide jobs. The private sector investments and entrepreneurship continue to immensely contributing the largest share of job opportunities, especially in urban areas.
The study identified the most important socio-economic and employment policy challenges for the work-seeking population. Lack of or insufficient information on employment opportunities and self-employment, inadequate and inefficient public employment services, limited access to finance to become self-employed, and inadequate and inappropriate vocational training options are the major challenges.
Therefore, working to address the above gaps and promoting entrepreneurship are the fundamental solutions to absorb the growing number of job seekers.
More importantly, the use of digital technologies has given priority to interacting, sharing, and developing ideas of entrepreneurs throughout the country. The Ministry of Labor and Skills is doing its level best to recover the enterprises and entrepreneurs.
In addition, promoting entrepreneurs and Small and Medium Enterprises (SMEs) will stimulate employment growth by generating new jobs when they enter the market. Youth employment is a fundamental challenge that will shape Ethiopia’s present and future development. In the coming two decades, the urban population is expected to triple from the current 19 percent. This enormously young urban population requires an enabling and inclusive socioeconomic and political system to become a catalyst for structural transformation.
ICT, agriculture, manufacturing, mining, and tourism, among others are the major sectors prioritized by the Ethiopian government to create numerous job opportunities for the youths and women. As 70 percent of Ethiopia’s population is the youth, it is important to give due priority to the entrepreneurship sector towards maintaining productive manpower and ensuring sustainable socio-economic development.
In sum, the Ethiopian government highly encourages young and women entrepreneurs to cultivate their entrepreneurship skills, employ themselves, and create jobs for fellow citizens. Thus, various incentives are offered to the youth and women at different times. Money and in-kind support, availing land for working, and continued guidance services, among others help young people to work closely with government bodies towards boosting their competency.
BY TEWODROS KASSA
THE ETHIOPIAN HERALD FRIDAY 22 NOVEMBER 2024
