Md. Jamal Hosen, General Secretary, National Youth Forum of Bangladesh

Youth are the driving force behind economic transformation, social progress, and technological advancement in the 21st century. Around the globe, young people are embracing entrepreneurship not just as a means of earning a livelihood, but as a vehicle for creating impact, solving societal challenges, and redefining industries. In developing countries like Bangladesh, youth-led enterprises have emerged as powerful tools for generating employment, enhancing economic resilience, and promoting inclusive development.

However, the success of youth-led enterprises depends critically on two interlinked elements: skills and innovation. While entrepreneurial spirit and determination are vital, without the requisite skills to manage businesses and the ability to innovate, youth-run ventures may struggle to thrive in competitive and rapidly evolving markets. This article explores how skills and innovation shape youth entrepreneurship, the challenges that impede progress, and strategies to foster a more dynamic, inclusive, and sustainable youth-led enterprise ecosystem.

The Rise of Youth Entrepreneurship

Across the globe, entrepreneurship is increasingly seen as a viable path for young people, especially in economies where formal employment opportunities are limited. In countries with large youth populations like Bangladesh, India, Nigeria, and Indonesia, traditional job markets cannot absorb the millions of young people entering the workforce each year. Youth-led enterprises thus serve as both a solution to unemployment and a catalyst for local development.

In Bangladesh, where over 30% of the population is aged between 15 and 35, the youth unemployment rate hovers around 10%. Against this backdrop, young entrepreneurs have begun to lead initiatives in sectors such as ICT, e-commerce, agro-processing, handicrafts, logistics, renewable energy, and education technology. These enterprises are not only creating jobs for their founders but are also generating employment for others, especially in rural and underserved areas.

But turning ideas into impactful and sustainable businesses requires more than enthusiasm. It requires a robust foundation of entrepreneurial and technical skills, coupled with the capacity to innovate and adapt in an ever-changing world.

The Skill Imperative: Building Entrepreneurial Competence

A key determinant of success for youth-led enterprises is the availability and application of relevant skills. These span a wide spectrum—from core business competencies to industry-specific technical know-how and interpersonal skills.

1. Entrepreneurial Skills

These include business planning, financial management, marketing, customer relations, legal compliance, and risk assessment. A significant number of youth entrepreneurs lack exposure to these foundational aspects, resulting in poorly structured ventures that fail to scale or sustain operations.

Training programs, incubators, and business development services can help bridge these gaps. For instance, organizations like BRAC, Young Bangla, and Startup Bangladesh have begun to offer entrepreneurship boot camps, mentoring, and seed funding for young innovators.

2. Technical and Vocational Skills

In sectors like manufacturing, agriculture, and ICT, technical knowledge is indispensable. Whether it’s understanding software development for a tech startup, sustainable farming practices for an agri-business, or food safety regulations for a catering venture, technical skills are directly tied to product quality and market competitiveness.

TVET (Technical and Vocational Education and Training) systems in Bangladesh need to become more demand-driven, incorporating emerging technologies, industry needs, and practical experience.

3. Soft Skills

Effective communication, leadership, teamwork, negotiation, and time management are essential for any entrepreneur. These “21st-century skills” are often overlooked but can determine the ability to build partnerships, attract customers, and navigate challenges.

Embedding soft skills training into school and university curricula, as well as extracurricular activities, can prepare youth for entrepreneurial success in a holistic way.

4. Digital Skills

Digital literacy is now a baseline requirement for many enterprises. From digital marketing to online sales, from mobile banking to data analytics—digital skills open new horizons for innovation and efficiency.

As more youth engage in digital entrepreneurship—whether through e-commerce, freelancing, or mobile apps—developing advanced digital competencies is essential for competitiveness.

Innovation: The Lifeblood of Youth Enterprises

Innovation is not limited to high-tech inventions. It includes new business models, creative marketing strategies, unique value propositions, improved processes, and socially impactful solutions. For youth-led enterprises, innovation often arises from the ability to identify unmet needs, apply technology creatively, and challenge traditional norms.

1. Product and Service Innovation

Young entrepreneurs often bring fresh perspectives to age-old problems. For example, youth-led startups in Bangladesh have developed mobile applications for farmers to access real-time weather and market data, eco-friendly packaging from jute, and AI-based tools for language learning.

Supporting such innovations requires access to R&D resources, intellectual property rights awareness, and platforms for experimentation.

2. Process Innovation

Efficiency and cost-effectiveness are critical for startups with limited resources. Youth enterprises that streamline production, use digital tools to reduce transaction costs, or adopt green technologies can gain a competitive edge.

For instance, using solar-powered cold storage in rural fisheries or employing blockchain in supply chain management reflects process innovation tailored to local contexts.

3. Business Model Innovation

Youth entrepreneurs are redefining how businesses operate—through subscription models, social enterprises, gig platforms, or hybrid ventures that combine profit with purpose. Platforms like Pathao (a Bangladeshi ride-sharing app) or ShopUp (a digital commerce enabler) demonstrate how innovative models can scale rapidly.

Innovation in business models often stems from exposure to global trends, access to mentors, and freedom to experiment.

4. Social Innovation

Many youth-led enterprises aim to solve social or environmental challenges. These include ventures addressing menstrual hygiene, education access, clean water, or refugee livelihoods. By aligning purpose with profit, young entrepreneurs are reshaping the development landscape.

Governments and donors can play a role by offering impact-based funding, social innovation challenges, and recognition platforms.

Challenges Faced by Youth Entrepreneurs

Despite the promise and energy of youth-led enterprises, several barriers inhibit their full potential. These include:

1. Access to Finance

Lack of collateral, credit history, or financial literacy makes it difficult for young entrepreneurs to secure loans or investments. Traditional banks are often risk-averse toward startups, especially those run by youth.

Solutions: Microfinance, youth-specific loan schemes, venture capital funds, and crowdfunding platforms tailored to youth can address these challenges.

2. Regulatory Hurdles

Complex procedures, high registration costs, and bureaucratic red tape discourage many youth from formalizing their businesses.

Solutions: Governments can create one-stop online registration portals, simplify tax codes, and offer incentives for youth-owned businesses.

3. Lack of Mentorship and Networks

Many young entrepreneurs lack access to experienced mentors or business networks, limiting their exposure and growth opportunities.

Solutions: National mentorship programs, peer networks, alumni associations, and innovation hubs can fill this gap.

4. Gender Barriers

Young women entrepreneurs often face additional hurdles—social norms, safety concerns, limited mobility, and unequal access to finance and training.

Solutions: Gender-sensitive entrepreneurship programs, safe working spaces, and targeted funding for women-led enterprises are essential.

5. Market Access

Reaching customers—especially in competitive or saturated markets—is a major hurdle. Many youth-led ventures struggle with marketing, branding, and logistics.

Solutions: E-commerce platforms, export facilitation, digital marketing training, and participation in trade fairs can boost market access.

Building a Supportive Ecosystem

Empowering youth-led enterprises requires a coordinated ecosystem that includes government, private sector, civil society, and educational institutions.

1. Policy and Institutional Support

Governments should adopt national youth entrepreneurship strategies, create youth innovation funds, and integrate entrepreneurship education at all levels. Coordination between ministries of education, labor, finance, and industry is crucial.

2. Education System Reform

Entrepreneurship should be introduced early in schools, not just as a subject but as a practice—through student businesses, innovation clubs, and project-based learning. Universities must create incubators, offer entrepreneurship majors, and connect students with industry.

3. Access to Technology and Infrastructure

Affordable internet, digital devices, co-working spaces, maker labs, and logistics services are necessary to operationalize ideas. Investment in digital infrastructure, especially in rural areas, is vital.

4. Recognition and Role Models

Award schemes, storytelling platforms, and media coverage can inspire others by showcasing successful youth entrepreneurs. Positive narratives about risk-taking and failure also build a culture of innovation.

5. International Cooperation

Global platforms like Youth Co:Lab (a UNDP-Asia initiative), the Global Shapers Community, and cross-border accelerator programs can offer youth access to global markets, investors, and knowledge networks.

Case Studies from Bangladesh

1. Apon Wellbeing Ltd.

Founded by a young entrepreneur, Apon is a retail-tech social enterprise providing essential goods and healthcare to factory workers at discounted rates through an app-based platform. It combines innovation in delivery with a strong social impact model.

2. iFarmer

A tech-enabled platform that connects smallholder farmers with investors and markets. iFarmer enables youth to participate in the agricultural value chain with transparency and efficiency, showcasing how digital skills can transform traditional sectors.

3. Sajida Foundation Youth Programs

By supporting young entrepreneurs in slums and low-income communities with training, seed funding, and mentoring, Sajida Foundation demonstrates how targeted interventions can promote inclusion and equity in entrepreneurship.

The Way Forward

To maximize the contribution of skills and innovation in youth-led enterprises, the following priorities should guide action:

• Holistic skill development: Integrate technical, entrepreneurial, digital, and soft skills through formal and informal education.
• Promote inclusive innovation: Ensure youth from rural, low-income, and marginalized groups have equal access to innovation opportunities.
• Bridge academia and industry: Facilitate research commercialization, internship programs, and industry-led curriculum development.
• Encourage risk-taking: Create a culture where experimentation is valued and failure is accepted as part of learning.
• Invest in platforms: Expand digital marketplaces, incubators, and online training portals specifically for youth entrepreneurs.

Conclusion

Youth-led enterprises are not merely economic actors; they are agents of change, inclusion, and resilience. In a world marked by uncertainty, climate change, digital disruption, and demographic shifts, the entrepreneurial energy of young people offers hope and direction.

But energy alone is not enough. Only through targeted investment in skills development and a supportive environment for innovation can youth-led enterprises achieve their full potential. Governments, businesses, educators, and development partners must work together to create this ecosystem—one that believes in the capabilities of youth and gives them the tools to transform their ideas into impactful realities.

The future belongs to the young. It is our collective responsibility to ensure they have what it takes to build it.

ASIAN STATE INTERNATIONAL MAGAZINE

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