GUIDING FRAMEWORK FOR COMMONWEALTH ACTION PLAN FOR YOUTH ENTERPRISE (CAPYE)

Facilitator: Beth MwangiMicro Finance & Enterprise Development Consultant IDEAL BUSINESS LINK LTDEmail: beth@idealbiz.co.ke

Introduction

The Commonwealth Youth Credit Initiative (CYCI) was launched to showcase a model project for youth entrepreneurship

The main objective of the CYCI is the creation of employment opportunities for   unemployed young people through training and credit support.

CYP Experience in enterprise development

The results from the CYCI have proved that young people are bankable and credit-worthy.

The 2009 Commonwealth Heads of Government Meeting (CHOGM) acknowledged the work of CYCI & called for its enhancement

Guiding framework for CAPYEOverall purpose of the Guiding

Framework for Commonwealth Action Plan for Youth Enterprise is to enhance the participation of young people in economic development

Objectives of guiding framework for CAPYE To promote youth enterprise

development as a viable contributor to economic growth, social development and political stability

To provide a young friendly customized approach for young people to reach their goals though enterprise development.

Objectives …

To promote integration of programmes, strategic partnerships and resource mobilization for youth enterprise development in order to optimize the impact of these services for young people.

To document successful youth enterprise practices as a viable development model.

Preparatory Phase: Prerequisites to (CAPYE)

STEP 1: Carry out a baseline survey to collect relevant data

Will provide useful benchmarks for monitoring & evaluation of the programme implementation Preparing baseline questionnaire Identify key stakeholders Conduct baseline survey

STEP 2: National Consultative Forum on CAPYE

Share the baseline survey findings and recommendations in a national consultative forum to build consensus

identify potential partners and forge strategic partnerships

Sharing CYCI & other good practices (ICECD India, YEDF Kenya, Lesotho Youth Enterprise Development Programme, etc)

STEP 3: Crafting a National Action Plan for Youth Enterprise Development

Action plan should incorporate at least four pillars Creating an enabling environment Skills development Enhancing resource availability Providing enterprise support services

STEP 4: Devising advocacy strategy

Inculcate an entrepreneurial culture early in life by highlighting the importance of an entrepreneurial culture for personal and economic development,

Present self employment as a career alternative for young people as a way to achieve self actualization

Sensitize all the key stakeholders on their role in CAPYE

Advocacy strategy

Lobbying for removal of key constraints o Removing financial barriers (to accessing

loan and credit etc)o Market rules Issues of land ownership and

access-o Marketing of the products and services of

youth micro enterpriseso Ongoing training and technical assistance

Set up an institutional Mechanism & mobilize resources for pilot CAPYE

Identify key stakeholders in youth employment/ enterprise development

Define roles & responsibilities of key stakeholders

Establish a monitoring & evaluation (M &E) framework

Lobby national government & other development / donor agencies for increased funding

Institutional framework for CAPYE

Project management unit Management Advisory Board to steer

development of the CAPYE Implementing agencies / Business

Development Service providers for financial & non financial services

Responsibilities of PCU

Development of an operational plan for CAPYE programme

Manage and monitor the implementation of the plan of action

Provide operational and technical guidance to the project

Staff training to enhance capacity for program delivery

Provide administrative support

Structure of PCU

Programme Manager – experienced in enterprise development & project management

Programme coordinator / Liaison person – strong interpersonal & communication skills

An Accountant / fund manager – to manage the project funds

PCU structure

Secretary / administrator – to coordinate day to day activities & provide logistical support to the management team

Office should be adequately equipped e.g. computer with adequate software for MIS purposes

Management Advisory Board (MAB)

Provide strategic leadership to CAPYE, Monitor and evaluate project activities through

review of progress reports, site visits and commission

Select the Implementing Agencies / service providers for CAPYE

Ensure financial Accountability of project funds by commissioning periodic audits

To undertake promotional and advocacy activities

Structure of MAB

MAB should be an independent institutional structure within the CAPYE

It should be independent and autonomous Should advise and make recommendations to

the Project Coordinating Unit (PCU) on project implementation

Implementing Agencies / BDS providers PCU should not be directly involved in

CAPYE implementation A BDS approach should be adopted with

the PCU playing the role of a facilitator Institutions with an established track

record in delivery of enterprise support services should be identified and selected to deliver the requisite support services to youth enterprises

Setting up a Monitoring & Evaluation framework Clear performance benchmarks should

be defined at project inception CAPYE should require regular reporting

on institutional performance from implementing agencies

Funding decisions should be based on achievement of performance targets.

Implementation of the Pilot phase of CAPYE

Development of a pilot plan for CAPYE Identification of pilot areas context Setting targets to be achieved within the

pilot phase Define promotional strategies for

awareness creation Define the duration of the pilot phase Mid term & end of project evaluation of the

pilot project

Selection criteria for implementing agencies for the pilot phase

Strict selection criteria should be applied for implementing agencies / service providers (for delivery of both financial services & for BDS)

Capacity assessment should be based on three key performance indicators namely: institutional strengths; quality of service and outreach; and financial performance

 

Potential service providers / implementing agencies for CAPYE

micro finance institutions; NGO’s operating successful micro credit

programs; commercial banks with a focus on pro

poor clients; private organizations and consultants

offering BDS commercially.

Identification of financial service providers

Youth need access to start up capital or capital for expansion of their enterprises.

They also need access to a whole range of financial services namely:- savings products; Funds transfer and other payments systems; and Insurance services among others

Identification of BDS providers

Access to quality BDS for Youth enterprises requires the use of various business development tools Training – both in business skills and personal skills

development Access to information Technology development and transfer including

product development Access to larger and more profitable markets / niche

markets Mentoring & business counselling services

Facilitating linkages to support services

Linkages with market, technology and finance will enable youth entrepreneurs to adopt viable technologies &

Market their products for business growth and development.

This will serve to create additional employment opportunities’ for other youth.

Selection and formation of youth groups / cooperatives to function as administrative Units

mobilizing the Youth to form common interest groups (CIGs) or Youth cooperatives for cost effective delivery of BDS.

Design of the Youth administrative units should be informed by country specific situations and conscious effort must be made to build on locally established networks / institutions

Intensive capacity building / training program for the selected youth.

Two different types of training are therefore required namely:- Personal development skills namely:-

personal confidence, communication & public relations, visioning and development of personal goals / objectives; team building and conflict resolution.

Business skills – to equip the youth with the requisite skills to start, manage and grow their own enterprises

Establishment of new youth enterprises and expansion of existing youth enterprises

Follow up and support function should be undertaken

Credit recovery mechanisms are put into action.

local support organizations are sensitized and linkages established with them for networking.

Facilitate access to BDS e.g. market linkages

Mainstreaming the youth into the formal financial and market systems

The ultimate objective of the CAPYE is to have the Youth mainstreamed into formal banks / financial institutions and market systems.

A networking and mainstreaming approach should be adopted wherein, linkages with support organizations are initiated right at the beginning of the enterprise creation initiatives

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Evaluation of pilot phase

Objective is to test the effectiveness of the program design with a view to addressing any weakness that may be identified while reinforcing the strengths.

 A period of 18-24 months should be adequate for the pilot phase.

At the end of this period, an evaluation should be commissioned to find out what worked well and what did not work.

Scaling up phase

The findings of the evaluation carried out at the end of the pilot phase should be used to refine design of CAPYE

The objective is to replicate and implement CAPYE through out the country in order to reach more youth as one of the key strategies for economic development and political stability.

Set up an institutional framework to replicate and implement CAPYE programme at a national level

The PMU should be expanded and developed into an independent Youth Enterprise Development Trust (YEDT).

Further, it should be delinked from the Directorate / Ministry of Youth in order to promote a business like approach and efficiency required for enterprise promotion and growth

Additional responsibilities for YEDT

Monitoring of impacts on youth entrepreneurs (tracer studies etc)- not only on financial performance to facilitate the adjustment of the CAPYE to meet emerging social needs.

A research and development role (or access though a third party) to conduct ongoing research on new technologies, markets etc to support businesses and enhance scope of the CAPYE e.g. value chain analysis & sub sector studies

Additional responsibilities for YEDT

The identification, marketing and leveraging of “role models” or “champions” for the programme at all stages! This should be part of a customized marketing/publicity campaign for the CAPYE.

Oversight for the training and re-training of young people for their success as entrepreneurs in view of the expected changes in the dynamic business environment

Ministry/ Directorate of Youth – Role and responsibilities

Responsible for lobbying the government to create an enabling environment for the CAPYE

Formation of a Youth Enterprise Development Trust (YEDT)to champion the youth enterprise development initiative and lobby for government funding of the same

Lobby for funding from National government & development / donor agencies

Constitute a Board of Directors with representatives drawn from key stakeholders in Youth enterprise development to monitor performance of YEDT