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Working Paper 204 - Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland

Zuzana Brixiová Schwidrowski () and Mthuli Ncube ()
Authors registered in the RePEc Author Service: Zorobabel Tamoué Bicaba ()

Working Paper Series from African Development Bank

Abstract: The shortages of entrepreneurial skillshave lowered search effectiveness of potential young entrepreneurs and the rate of youth start-ups. Our paper contributes to closing a gap in the entrepreneurship and development literature with a model of costly firm creation and skill differences between young and adult entrepreneurs. The model shows that for young entrepreneurs facing high cost of searching for business opportunities, support for training is more effective in stimulating productive start-ups than subsidies. Further, the case for interventions targeted at youth rises in societies with high cost of youth unemployment. We test the role of skills and training for productive youth entrepreneurship on data from a recent survey of entrepreneurs in Swaziland.

Date: 2014-08-06
New Economics Papers: this item is included in nep-afr and nep-ent
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