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Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland

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  • Brixiová, Zuzana
  • Ncube, Mthuli
  • Bicaba, Zorobabel

Abstract

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

Suggested Citation

  • Brixiová, Zuzana & Ncube, Mthuli & Bicaba, Zorobabel, 2015. "Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland," World Development, Elsevier, vol. 67(C), pages 11-26.
    • Handle: RePEc:eee:wdevel:v:67:y:2015:i:c:p:11-26
    DOI: 10.1016/j.worlddev.2014.09.027
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    youth entrepreneurship; model of skills and structural transformation; policies; Africa;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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