GUIDING FRAMEWORK FOR COMMONWEALTH ACTION PLAN FOR YOUTH ENTERPRISE (CAPYE)

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GUIDING FRAMEWORK FOR COMMONWEALTH ACTION PLAN
FOR YOUTH ENTERPRISE (CAPYE)

• Facilitator Beth Mwangi
• Micro Finance Enterprise Development Consultant
  
• IDEAL BUSINESS LINK LTD
• Email beth_at_idealbiz.co.ke

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Introduction

• The Commonwealth Youth Credit Initiative (CYCI)
  was launched to showcase a model project for
  youth entrepreneurship
• The main objective of the CYCI is the creation of
  employment opportunities for   unemployed young
  people through training and credit support.

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CYP Experience in enterprise development

• The results from the CYCI have proved that young
  people are bankable and credit-worthy.
• The 2009 Commonwealth Heads of Government Meeting
  (CHOGM) acknowledged the work of CYCI called
  for its enhancement

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Guiding framework for CAPYE

• Overall purpose of the Guiding Framework for
  Commonwealth Action Plan for Youth Enterprise is
  to enhance the participation of young people in
  economic development

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Objectives of guiding framework for CAPYE

• To promote youth enterprise development as a
  viable contributor to economic growth, social
  development and political stability
• To provide a young friendly customized approach
  for young people to reach their goals though
  enterprise development.

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Objectives

• To promote integration of programmes, strategic
  partnerships and resource mobilization for youth
  enterprise development in order to optimize the
  impact of these services for young people.
• To document successful youth enterprise practices
  as a viable development model.

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Preparatory Phase Prerequisites to (CAPYE)

• STEP 1 Carry out a baseline survey to collect
  relevant data
• Will provide useful benchmarks for monitoring
  evaluation of the programme implementation
• Preparing baseline questionnaire
• Identify key stakeholders
• Conduct baseline survey

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STEP 2 National Consultative Forum on CAPYE

• Share the baseline survey findings and
  recommendations in a national consultative forum
  to build consensus
• identify potential partners and forge strategic
  partnerships
• Sharing CYCI other good practices (ICECD India,
  YEDF Kenya, Lesotho Youth Enterprise Development
  Programme, etc)

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STEP 3 Crafting a National Action Plan for Youth
Enterprise Development

• Action plan should incorporate at least four
  pillars
• Creating an enabling environment
• Skills development
• Enhancing resource availability
• Providing enterprise support services

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STEP 4 Devising advocacy strategy

• Inculcate an entrepreneurial culture early in
  life by highlighting the importance of an
  entrepreneurial culture for personal and economic
  development,
• Present self employment as a career alternative
  for young people as a way to achieve self
  actualization
• Sensitize all the key stakeholders on their role
  in CAPYE

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Advocacy strategy

• Lobbying for removal of key constraints
• Removing financial barriers (to accessing loan
  and credit etc)
• Market rules Issues of land ownership and access-
• Marketing of the products and services of youth
  micro enterprises
• Ongoing training and technical assistance

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Set up an institutional Mechanism mobilize
resources for pilot CAPYE

• Identify key stakeholders in youth employment/
  enterprise development
• Define roles responsibilities of key
  stakeholders
• Establish a monitoring evaluation (M E)
  framework
• Lobby national government other development /
  donor agencies for increased funding

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Institutional framework for CAPYE

• Project management unit
• Management Advisory Board to steer development of
  the CAPYE
• Implementing agencies / Business Development
  Service providers for financial non financial
  services

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Responsibilities of PCU

• Development of an operational plan for CAPYE
  programme
• Manage and monitor the implementation of the plan
  of action
• Provide operational and technical guidance to the
  project
• Staff training to enhance capacity for program
  delivery
• Provide administrative support

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Structure of PCU

• Programme Manager experienced in enterprise
  development project management
• Programme coordinator / Liaison person strong
  interpersonal communication skills
• An Accountant / fund manager to manage the
  project funds

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PCU structure

• Secretary / administrator to coordinate day to
  day activities provide logistical support to
  the management team
• Office should be adequately equipped e.g.
  computer with adequate software for MIS purposes

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Management Advisory Board (MAB)

• Provide strategic leadership to CAPYE,
• Monitor and evaluate project activities through
  review of progress reports, site visits and
  commission
• Select the Implementing Agencies / service
  providers for CAPYE
• Ensure financial Accountability of project funds
  by commissioning periodic audits
• To undertake promotional and advocacy activities

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Structure of MAB

• MAB should be an independent institutional
  structure within the CAPYE
• It should be independent and autonomous
• Should advise and make recommendations to the
  Project Coordinating Unit (PCU) on project
  implementation

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Implementing Agencies / BDS providers

• PCU should not be directly involved in CAPYE
  implementation
• A BDS approach should be adopted with the PCU
  playing the role of a facilitator
• Institutions with an established track record in
  delivery of enterprise support services should be
  identified and selected to deliver the requisite
  support services to youth enterprises

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Setting up a Monitoring Evaluation framework

• Clear performance benchmarks should be defined at
  project inception
• CAPYE should require regular reporting on
  institutional performance from implementing
  agencies
• Funding decisions should be based on achievement
  of performance targets.

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Implementation of the Pilot phase of CAPYE

• Development of a pilot plan for CAPYE
• Identification of pilot areas context
• Setting targets to be achieved within the pilot
  phase
• Define promotional strategies for awareness
  creation
• Define the duration of the pilot phase
• Mid term end of project evaluation of the pilot
  project

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Selection criteria for implementing agencies for
the pilot phase

• Strict selection criteria should be applied for
  implementing agencies / service providers (for
  delivery of both financial services for BDS)
• Capacity assessment should be based on three key
  performance indicators namely institutional
  strengths quality of service and outreach and
  financial performance
•  

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Potential service providers / implementing
agencies for CAPYE

• micro finance institutions
• NGOs operating successful micro credit programs
  
• commercial banks with a focus on pro poor
  clients
• private organizations and consultants offering
  BDS commercially.

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Identification of financial service providers

• Youth need access to start up capital or capital
  for expansion of their enterprises.
• They also need access to a whole range of
  financial services namely- savings products
  Funds transfer and other payments systems and
  Insurance services among others

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Identification of BDS providers

• Access to quality BDS for Youth enterprises
  requires the use of various business development
  tools
• Training both in business skills and personal
  skills development
• Access to information
• Technology development and transfer including
  product development
• Access to larger and more profitable markets /
  niche markets
• Mentoring business counselling services

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Facilitating linkages to support services

• Linkages with market, technology and finance will
  enable youth entrepreneurs to adopt viable
  technologies
• Market their products for business growth and
  development.
• This will serve to create additional
• employment opportunities for other youth.

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Selection and formation of youth groups /
cooperatives to function as administrative Units

• mobilizing the Youth to form common interest
  groups (CIGs) or Youth cooperatives for cost
  effective delivery of BDS.
• Design of the Youth administrative units should
  be informed by country specific situations and
  conscious effort must be made to build on locally
  established networks / institutions

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Intensive capacity building / training program
for the selected youth.

• Two different types of training are therefore
  required namely-
• Personal development skills namely-personal
  confidence, communication public relations,
  visioning and development of personal goals /
  objectives team building and conflict
  resolution.
• Business skills to equip the youth with the
  requisite skills to start, manage and grow their
  own enterprises

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Establishment of new youth enterprises and
expansion of existing youth enterprises

• ?Follow up and support function should be
  undertaken
• Credit recovery mechanisms are put into action.
• local support organizations are sensitized and
  linkages established with them for networking.
• Facilitate access to BDS e.g. market linkages

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Mainstreaming the youth into the formal financial
and market systems

• The ultimate objective of the CAPYE is to have
  the Youth mainstreamed into formal banks /
  financial institutions and market systems.
• A networking and mainstreaming approach should be
  adopted wherein, linkages with support
  organizations are initiated right at the
  beginning of the enterprise creation initiatives
• L
•  

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Evaluation of pilot phase

• Objective is to test the effectiveness of the
  program design with a view to addressing any
  weakness that may be identified while reinforcing
  the strengths.
•  A period of 18-24 months should be adequate for
  the pilot phase.
• At the end of this period, an evaluation should
  be commissioned to find out what worked well and
  what did not work.

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Scaling up phase

• The findings of the evaluation carried out at the
  end of the pilot phase should be used to refine
  design of CAPYE
• The objective is to replicate and implement CAPYE
  through out the country in order to reach more
  youth as one of the key strategies for economic
  development and political stability.

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Set up an institutional framework to replicate
and implement CAPYE programme at a national level

• The PMU should be expanded and developed into an
  independent Youth Enterprise Development Trust
  (YEDT).
• Further, it should be delinked from the
  Directorate / Ministry of Youth in order to
  promote a business like approach and efficiency
  required for enterprise promotion and growth

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Additional responsibilities for YEDT

• Monitoring of impacts on youth entrepreneurs
  (tracer studies etc)- not only on financial
  performance to facilitate the adjustment of the
  CAPYE to meet emerging social needs.
• A research and development role (or access though
  a third party) to conduct ongoing research on new
  technologies, markets etc to support businesses
  and enhance scope of the CAPYE e.g. value chain
  analysis sub sector studies

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Additional responsibilities for YEDT

• The identification, marketing and leveraging of
  role models or champions for the programme at
  all stages! This should be part of a customized
  marketing/publicity campaign for the CAPYE.
• Oversight for the training and re-training of
  young people for their success as entrepreneurs
  in view of the expected changes in the dynamic
  business environment

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Ministry/ Directorate of Youth Role and
responsibilities

• Responsible for lobbying the government to create
  an enabling environment for the CAPYE
• Formation of a Youth Enterprise Development Trust
  (YEDT)to champion the youth enterprise
  development initiative and lobby for government
  funding of the same
• Lobby for funding from National government
  development / donor agencies
• Constitute a Board of Directors with
  representatives drawn from key stakeholders in
  Youth enterprise development to monitor
  performance of YEDT