G20 at risk of losing entrepreneurial and job-creating cultures
Governments must commit to and enact targeted education policies that support future generations of youth entrepreneurs, or else they risk losing out on years of jobs growth and new forms of innovation, warns a new report by EY,
The study released alongside this year’s G20 Young Entrepreneurs’ Alliance (G20 YEA) Summit in Turkey, provides six actionable policy recommendations for G20 governments to consider that would help construct and nurture cultures of high-impact entrepreneurship over a sustained time period.
The report builds on recent EY research outlining the urgency needed to drive entrepreneurship to the top of the job-creation policy agenda. Youth unemployment remains high at 16% across the G20. But youths in the G20 still remain optimistic with 65% aspiring to be entrepreneurs and run their own business at some point in their careers. Despite these aspirations, only 15% of entrepreneurs believe their country has a culture supportive of entrepreneurship.
At over 80%, there is overwhelming sentiment among this group for governments to raise awareness of entrepreneurs as job creators and teach skills in schools and universities to encourage business startups and innovation. This approach would improve attitudes toward their work — creating more hospitable conditions in establishing businesses. EY research underscores that in cultures where targeted public policies on education and job-training are more prevalent, these markets develop entrepreneurship and innovation as engines of economic growth.
To account for this policy gap, the report lays a clear path for G20 governments to establish entrepreneurial cultures of high impact. This starts with education policy that provides countries with an institutional framework that can “supercharge” the entrepreneurial ecosystem and drive sustainable gains.
“With high youth unemployment in some G20 countries and with ever-present demands for innovation, sustainability and social inclusion, governments are increasingly focused on channeling support to high-impact entrepreneurship among youth. In pivoting education to focus on the tools and skills necessary, policies can support a culture supportive of entrepreneurship through a youth’s lifetime. The challenge then for policymakers is to uncover best-in-class policies to foster real i mprovement in entrepreneurial culture in their respective economies,” explained Rohan Malik, Emerging Markets and Deputy Global Government and Public Sector Leader at EY.