promoting youth entrepreneurship in indonesiasiteresources.worldbank.org/...youth_entrep_1.pdf ·...

I n don esi a Bu si n ess L i n ks Resource Centre for Corporate Citizenship

PROMOTING YOUTH ENTREPRENEURSHIP IN INDONESIA

Presented by :Himawan G. Adibowo

Business Development DirectorINDONESIA BUSINESS LINKS

East Asia and Pacific Video Conference on Youth Entrepreneurship, 14 November 2008


Youth Unemployment Issue in Indonesia

• Total population is 220million

• In 2002, youth unemployment rate was 22% while among adults was only 3.3% (WDR 2007, World Bank)

• In 2007, 60% of 11,6 million unemployed is youth

• Many young people face significant difficulties entering the labormarket for many reasons, but one of the solutions to address this issue is to start business on their own. In 2007, 29% of Indonesian youth aged 18-32 are engaged in entrepreneurial act. (NLFS, 2007).

• To start up a business, young people face arrays of barriers: lack of confidence, lack of knowledge, lack of experience, lack of capital.


About INDONESIA BUSINESS LINKS

– A not-for-profit organization promoting good corporate citizenship in Indonesia.

– Works with companies (multinational and national) who are committed to “Corporate Social Responsibility” (CSR)

– Collaborates with national/international organizations and donor agencies to develop programs related to social and environmental aspects.

– Adopting (but not limited to) Public Private Partnership model in every program/initiative.

– Almost 10 years experiences, implementing 5 programs related to business ethics, enterprise development and environment.

– Currently supported by over 40 companies, benefiting thousands of youth, local communities, and business.


YES Programme

•Commenced in 2003, as a pilot program of LiveWire International (Shell) until 2007, supported by IFC and other companies.

•Currently funded by Diageo Foundation, and supported by McKinsey& Co, Accenture Indonesia, and Youth Business International (YBI)

• It was designed to assist young entrepreneurs to establish and sustain successful businesses.

•Beneficiaries :– New businesses owned by young people (age 18-32) with entrepreneurial

attitudes.

– Businesses run for not more than 2 years in operation

– The business is not against law, caring the environment, innovative and potential to grow and sustain.


YES Partnership Model

CORPORATIONS

Fund, Expertise, Networking, Market, etc

DONORS

Fund, Expertise, Networking, Market, etc

IBL – YES ProgrammeProgramme Plan, Management and Development, Monitoring and

Evaluation, Networking

GOVERNMENT

Fund, Expertise, Regulation, Premises,

etc

Cash & in-kind contribution

Programme’ssupport & services

YE YE YEYEYE

I n don esi a Bu si n ess L i n ksResource Centre for Corporate Citizenship

Competition identifiespromising youth businesses

capable of scaling upand sustainability

To drive interestin participationin the Program

Supported businesses :• provide role models for other youth

• create employment for Indonesia’s youth

identifiesbusinesses

n don esi a Bu si n ess


Activities and ServicesEntrepreneurship Awareness:

-Awareness Workshop

-Program Promotion

Youth Business Recognition:

- Selection Process (Concept Note, Business Plan, Interview Stage)

- Business Plan Training

- Award Inauguration

Enterprise Development Support:

- Basic Management Training (Finance, Marketing, Management)

- Direct Coaching and Mentoring

- Monitoring and Evaluation


Programme Scale

• Geographic coverage in 3 provinces: Java, Aceh and Nias.

• Number of participants ( Entrepreneurship Awareness Workshop):

– 2045 young people (until 2003-2007)– 415 young people (2008)

• Business Competition Entries: 1867 business profiles.

• Number of Supported businesses: – 24 youth-owned businesses (until 2007)– 90 youth-owned businesses (target 2008/09)

• Award to YE: US$2500 per business (until 2007), and US$1000 per business (targeting 10 businesses in current batch)

I n don esi a Bu si n ess L i n ksResource Centre for Corporate Citizenship


Challenges

• The program only covers limited region and operates in urban areas, due to resources constraint.

• ‘Voluntary Mentorship Program’ needs major improvement; some local experienced businessmen have already shared their experience and knowledge to the “YES participants” but not in a systematic way.

• The business case for CSR investments in entrepreneurship training is new to Indonesia.

• Lack of commercial or alternative financial institutions which provide non-collateral soft-loan for the youth-owned start up businesses.

• Building public-private partnership model for YES is not easy, as it requires strong network and facilitating skills.


Lessons Learned

• To cover wider outreach:– Dissemination of program’s information through electronic-, mass-

media, and website.– Identification of potential participants is carried out through

workshops.• To ensure quality of beneficiaries, the Judging Panel, Mentors and

Business-Coach must comprise of experienced and successful business people.

• To ensure its sustainability, the YES businesses should be monitored and evaluated continuously

• To sustain YES, IBL constantly promotes YES as a channel of CSR to corporations, including financial institutions.

• To build effective partnership, IBL empowers itself as catalyst and facilitator for partnership.


Following are testimonial and examples of the

Young Entrepreneurs

For further information, please contact

Indonesia Business Links

Website: www.ibl.or.id


Testimonial

“Before joining the enterprise development support in YES

program, I was never aware that I have to maintain my company’s

cash book. However, after receiving the training and coaching, I

realized how important it is to maintain it. This cash book enables

me to monitor my business condition and identify any investment

needs for the future more easily,” said Ferry Iskandar Lubis, the

owner of Trekker, being questioned about the benefit of YES

program to his business.


Apikayu

• Apikayu was founded in 1999 by Deny Willy, age 33 years (in 2008), email [email protected].

• Designing and producing furniture from cardboard were the focus of this enterprise.

• The Business has received loan in amount of IDR 50 Million from Standard Charter Bank as a winner of 2005 YES Business Startup Award.

• Recently, Apikayu changed its business to social enterprises and becomes a local foundation. Apikayu Foundation is more focusing to help local crafter in design and technical skill training


Prima Prada Cellular (PPC)

• Prima prada cellular was established in 2003 by Masbukhin (male), age 34 years (in 2008), email [email protected]

• PPC sells cellular pre-paid telephone cards as grocery since 2003.

• In 2006, PCC has main grocery outlet in Pulogadung trade center and other three retail outlets in several locations in Jakarta.

• Since mid of 2007, PPC was graduated from enterprise support program of YES program and promoted as a role model of successful young entrepreneur.


Fanindo Multi Farm (FMF)

• Fanindo Multi Farm was established in September 2005 by Atik Wahyu Naryati(female), age 27 years (in 2008), email [email protected].

• FMF business is in mushroom farming and also trading.

• This enterprise received award of 2006 YES Business StartupAward.

• In 2007, this company received loan in amount of IDR 48 Million from PT. Social Entrepreneur Indonesia, for production and market expansion.


Trekker

• The Trekker Foot Station was established in 2004 by Ferri Iskandar Lubis (male), age 36 years, email [email protected]

• This enterprise operates virtual shop (www.thetrekkers.com) for selling shoes, outdoor, emergency and safety equipments.

• Due to lots of demand in local market, this company expand their business by opening an outlet in Yogyakarta in 2007.

promoting youth entrepreneurship in indonesiasiteresources.worldbank.org/...youth_entrep_1.pdf ·...

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