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

1. GUIDING FRAMEWORK FOR COMMONWEALTH ACTION PLAN FOR YOUTH ENTERPRISE (CAPYE) Facilitator: Beth Mwangi Micro Finance & Enterprise Development Consultant IDEAL BUSINESS LINK LTD Email: beth@idealbiz.co.ke

2. 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.

3. 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

4. Guiding framework for CAPYE • Overall purpose of the Guiding Framework for Commonwealth Action Plan for Youth Enterprise is to enhance the participation of young people in economic development

5. 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.

6. 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.

7. 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

8. 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)

9. 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

10. 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

11. Advocacy strategy • Lobbying for removal of key constraints • Removing financial barriers (to accessing loan and credit etc) • Market rules Issues of land ownership and access- • Marketing of the products and services of youth micro enterprises • Ongoing training and technical assistance

12. 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

13. 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

14. 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

15. 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

16. 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 PCU structure

17. 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

18. 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

19. 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

20. 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.

21. 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

22. 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

23. 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.

24. 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

25. 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

26. 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.

27. 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

28. 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

29. 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

30. 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 • L

31. 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.

32. 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.

33. 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

34. 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

35. 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

36. 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