I just recieved a very interesting analysis by E&Y and the G20 Young Entrepreneurs’ Alliance (G20 YEA), entitled Avoiding a lost generation: Ten key recommendations to support youth entrepreneurship across the G20. Both their recommendations and what young entrepreneurs look for deserve some attention.
Here are the 10 recommendations:
Access to funding
1- Capital without mentorship is lost capital.
Create funding mechanisms, either government run or government backed, that make mentorship and financial education a condition of funding.
2- Access to alternative funding is critical.
Create strong relationships and provide incentives with venture capitalists (VCs), incubators and business angels to develop or create initiatives that enable alternative sources of capital.
3- Public funding matters.
Sponsor start-up growth with low-cost funding for targeted groups.
4- Entrepreneurs still need banks to keep credit moving.
Create a new class of loan for small businesses and young entrepreneurial firms that offers targeted funding to meet expansion capital needs.
Tax and regulation
5- Targeted tax and business incentives are highly important to supporting young entrepreneurs in scaling their businesses.
5a-: Encourage investment in start-ups by offering tax benefits.
5b-: Enable young, high-growth entrepreneurial firms to scale up through amplified support for market access.
6- Support global mobility for young entrepreneurs.
Encourage top international talent by changing visa rules and offering funding support.
7- Complex and burdensome rules in areas such as tax hold back young entrepreneurs.
Simplify and streamline tax administration to ease administrative burdens on young entrepreneurs.
8- Positive mainstream views about entrepreneurship are needed to attract young people.
Create a positive narrative around entrepreneurship to help engage young people from an early age.
9- Encourage a national, regional and local culture of entrepreneurship.
Encourage and foster hubs, incubators, accelerators and networks to bring relevant talent together.
Developing an entrepreneurial ecosystem
10-For many of the recommendations and actions to have sustainable impact they need to work as part of a regional ecosystem, and within a regional ecosystem framework that fosters and attracts a critical mass of talent, capital and most importantly entrepreneurial leaders.
Create the foundation for a regional entrepreneurial ecosystem to flourish.
And nearly as interesting is the perception from the entrepreneurs. Just notice that the priorities are not emphasized in the same order. We see that tax is not their main problem, an intuition that I always had.