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Youth agri-entrepreneurship - Setting the scene by CTA Lohento

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Introductory message by Ken Lohento, (CTA, ARDYIS Project) at the Centre for Development Innnovation (CDI)'s Market Access Short Courses - Wageningen University, Netherlands, January 2016

What role can agri-entrepreneurship and farming innovations play to engage young people in the agricultural sector?

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Youth agri-entrepreneurship - Setting the scene by CTA Lohento

  1. 1. Youth entrepreneurship in agriculture Setting the scene Ken LOHENTO Program Coordinator ARDYIS Project CTA CDI WUR market access short courses Netherlands, 20 Jan 2016
  2. 2. CTA • Technical Centre for Agriculture and Rural Cooperation (CTA) EU – ACP joint institution, 1983, based in Netherlands • Mission  advance food and nutritional security  increase prosperity  encourage sound natural resource management • Via  information and knowledge/ICT, policy dialogue, strengthening capacity, developing value chains Youth in agriculture = cross-cutting issue
  3. 3. What do we mean by Entrepreneurship? New good or quality thereof New method of production Opening of a new market New source of supply/material New organisation of industry Entrepreneurship (Schumpeter,1934) Innovation Risk taking High GROWTH Small business management Specific needs for supporting entrepreneurship Agro-entrepreneur # Exploitant agricole
  4. 4. Source: Global Entrepreneurship Index 2016
  5. 5. Youth bulge and unemployement imply need of entrepreneurship • Young Africans are 3 times more likely than adults to be unemployed • 62% of Sub-saharan Africa are under 25 • Up to 60% of young people in developing countries are either without work, not studying, or engaged in irregular employment (Jacqui Kew, GEM, 2015) – ILO rates lower consider specific variables. • Many successful young agri-preneurs are not agricultural specialists
  6. 6. • USA: “99% of all employers are small business owners. -- 75% of the new jobs created every year - - responsible for 96% of all exported goods.” (in the USA) • Rapid job creation comes from rapid growing companies (Global Entrepreneurship Index, 2016) • The age range 25 – 34 is home to the highest entrepreneurial activity (GEI) Importance of entrepreneurship and business for economies
  7. 7. Status of Youth entrepreneurial activities in Africa Uganda = country with the highest youth entrepreneurship in Africa (but the majority of these businesses create few new jobs) (Source: Africa’s young entrepreneurs…GEM, IDRC, 2015)
  8. 8. Youth business and impacts on the livelihoods of the entrepreneur (2013) Source: Jacqui K, GEM, IDRC 2015
  9. 9. Source: Jacqui K,GEM, IDRC 2015 Self unemployed are in the retail sector or SC agriculture sector, with low sustainabilty
  10. 10. Gender business disparity Source: Jacqui K,GEM, IDRC 2015
  11. 11. Youth businesses by sector, GEM study Source: Jacqui K,GEM, IDRC 2015
  12. 12. • 73% of youth businesses indicated that they were using old technologies or procedures (that were available more than five years ago) • 65% of low growth businesses operators have only a primary school education, while 80% of those running high-growth businesses have completed higher education Status of Youth entrepreneurial activities in Africa Source: Jacqui K,GEM, IDRC 2015
  13. 13. Agribusiness opportunities in all agricultural value chain segments for youth Source: Montpellier Panel Report, 2014
  14. 14. • Agribusiness training • Social media for agribusiness • Youth climate smart agribusiness project idea (FIJEV 2014+, with OIF, Gov Niger) • E-discussion and publication (with AGRA, FAO/IFAD, etc.) • Promoton of e-Agriculture entrepreneurship • Entrepreneurial blog awarded by YoBloCo Awards • Soon (2016):  A regional agribusiness WebTV in francophone Africa, to promote youth agribusiness (led by MediaProd in Burkina Faso)  Project on climate smart agriculture, agribusiness (Zambia)  Virtual youth agribusiness incubation platform in the Caribbean (IICA)  etc Some CTA youth Agribusiness activities
  15. 15. Offering ICT/mobile services for Agriculture CTA promotes e-Agriculture entrepreneurship e.g. Ensibuuko offers mobile financial services to more than 60 000 farmers in Uganda
  16. 16. Agri-entrepreneurship areas of challenges and solutions for youth Education/Training (post secondary education, vocational training) Favorable agribusiness policies Access to Land ICT ,Technology Access to finance (crowdfunding, business angel, investors,, commodity exchange, etc.) Business support (ecosystem, incubation, etc.)
  17. 17. Source: Global Entrepreneurship Index 2016
  18. 18. Some key resources • Unlocking the potential of Africa’s young entrepreneurs http://bit.ly/young-entrepreneurs-africa (Jacqui K, GEM, IDRC, 2015) • Africa Agriculture Status Report – 2015: Youth in Agriculture in SSA (AGRA, 2015) http://www.agra.org/media-centre/news/africa- agriculture-status-report--2015-/ • Youth and Agriculture: Key Challenges and Concrete Solutions (CTA, FAO, IFAD, 2013) http://bit.ly/youth-CTA-FAO-IFAD • CTA: http://www.cta.int • CTA Youth in agriculture and ICT program (ARDYIS): http://www.facebook.com/ardyis - http://ardyis.cta.int
  19. 19. Thank you lohento@cta.int www.cta.int www.facebook.com/ardyis

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