Youth, business and change

The drivers for change today are more numerous than what existed in past decades. Alvin Toffler, a former editor of Fortune Magazine, made the famous comment that there is only one constant today, and that is change. Though this statement was made a few years ago, its ongoing relevance is highlighted in the constant need for change to command our relevance in this fast-pace global environment.

Our intelligentsia, in many fora, have made a resounding plea for transformative change in the leadership and management of our country. In responding to this plea, the recently concluded Budget Debate provided insight into the 'game-changing' strategies to be undertaken by the Government. The Budget, for the most part, has outlined a plan to extract growth from the current indicators of macroeconomic stability.

I take note, specifically, of the prime minister's presentation which makes reference to creating economic growth by stimulating investment. A core element of this strategy is to reduce government borrowing so that more resources are available for those who want to invest, do business and create jobs. This strategy, on one hand, forces the Government to maximise its use of scarce resources, a basic concept in economics. On the other hand, it enables a paradigm shift within the financial sector as financial institutions themselves will have to embrace change and develop new business systems to maintain their profitability and competitiveness.

Another major symbol of change is reflected in the implicit effort to sacrifice short-term gratifications for the long-term growth and prosperity of the economy. But as we work towards building an economy for the future, there should simultaneously be an investment in the people who will be driving that economy - our youths. Therefore, the expansion of targeted youth programmes will be required to achieve the distribution of knowledge and opportunities among youths, especially those who are most vulnerable.

From the perspective of youth in business, the expansion of opportunities may not necessarily require the Government to 'spend more', as this contributes to the burdening fiscal deficit. However, it will require an enabling environment for entrepreneurship by way of supporting innovative ideas with 'youth-friendly' financing, leadership, and training programmes.

venture capital financing

Within the context of establishing a framework for venture capital financing and stimulating greater investment, there should, therefore, be parameters to ensure prospective and existing youth entrepreneurs with innovative ideas have access to financing with flexible collateral and equity requirements, low interest rates, and less forbidding conditions for eligibility.

There should also be a framework to facilitate oversight, and greater dialogue and collaboration between training partners and financiers so healthier businesses will be the end result of this positive synergy. These initiatives are important in unleashing the sustainable involvement of youth in the development of small, and medium-size enterprises which play such a key role in stimulating economic growth and job creation.

In today's environment, the cost of remaining solitary on opportunity-based entrepreneurship is more painful than the cost of embracing change.

Rean A. Goulbourne is a national youth ambassador. Email feedback to columns@gleanerjm.com and r.goulbourne@yahoo.com.