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

26 Pages Posted: 4 Jun 2014

See all articles by Zuzana Brixiova

Zuzana Brixiova

International Monetary Fund (IMF) - European Department; African Development Bank

Mthuli Ncube

BARBICAN Asset Management; London School of Economics & Political Science (LSE) - Financial Markets Group

Zorobabel Bicaba

African Development Bank

Multiple version iconThere are 2 versions of this paper

Date Written: May 31, 2014

Abstract

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.

Keywords: youth entrepreneurship, model of skills and structural transformation, policies, Africa

JEL Classification: J11, J08, L26, O11

Suggested Citation

Brixiova, Zuzana and Ncube, Mthuli and Bicaba, Zorobabel, Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland (May 31, 2014). William Davidson Institute Working Paper No. 1077, Available at SSRN: https://ssrn.com/abstract=2445001 or http://dx.doi.org/10.2139/ssrn.2445001

Zuzana Brixiova (Contact Author)

International Monetary Fund (IMF) - European Department ( email )

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African Development Bank ( email )

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Mthuli Ncube

BARBICAN Asset Management ( email )

London School of Economics & Political Science (LSE) - Financial Markets Group

Houghton Street
London WC2A 2AE
United Kingdom

Zorobabel Bicaba

African Development Bank ( email )

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