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

Listed author(s):
  • Brixiova, Zuzana

    ()

    (University of Cape Town)

  • Ncube, Mthuli

    ()

    (University of Oxford)

  • Bicaba, Zorobabel

    ()

    (African Development Bank)

The shortages of entrepreneurial skills have 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 costs of searching 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 productive youth entrepreneurship on data from a recent survey of entrepreneurs in Swaziland.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8192.

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Length: 26 pages
Date of creation: May 2014
Handle: RePEc:iza:izadps:dp8192
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  1. repec:ilo:ilowps:388157 is not listed on IDEAS
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