Supporting young entrepreneurs: from education to international markets

At the request of the Cypriot Presidency of the EU, the EESC worked on an Opinion on youth entrepreneurship within the EU. This is a particularly important topic, both for the aspirations and ambitions of young people, and for the challenge of intergenerational turnover in many SMEs.

Almost 40% of young Europeans dream of becoming entrepreneurs. The European framework can provide a favorable context for the emergence of quality projects thanks to a range of financial support, guidance and mentoring, high-quality incubation and training programs, all aimed at addressing concrete and operational needs.

The EESC hopes that the EU’s efforts to simplify administration will provide a stable and clear legislative and regulatory framework that favors new businesses and their development. These efforts should be replicated at the national levels as well to create a suitable environment.

It is also through the widespread inclusion of entrepreneurial thinking in education and vocational training that entrepreneurship can be fostered, not only in business creation but also in social, cultural, and sports activities. In this context, the role of dual education or apprenticeship should be highlighted, as it combines academic training with work experience. Many artisans and entrepreneurs in SMEs have been trained through these arrangements.

Difficulties young people face in accessing capital markets are a well-identified problem. Support is needed for funding measures for business creation and capitalisation instruments. However, this financial support must be accompanied by strategic evaluation to identify strengths and weaknesses, thus better securing entrepreneurial initiatives.

We welcome that most EU Member States offer personalised grants for young entrepreneurs, as well as micro-financing programs. The success and sustainability of a start-up project are largely reinforced by suitable guidance and adequate funding. The widespread adoption of these measures at the EU level is needed. Finally, strategies in certain European countries aim to encourage self-employment or promote female entrepreneurship, which is a tremendous opportunity for job creation. New measures are needed to provide inclusive support to all young people who aspire to start or take over a business, thereby helping to strengthen social cohesion and equal opportunities.

To achieve this, reducing the digital divide and facilitating access to technology supports innovation and business competitiveness in line with the digital transition at both European and national levels. We stress that developing skills in the use of artificial intelligence is essential for supporting the future activities of young people.

Likewise, the internationalisation of SMEs and start-ups, especially those led by young people, deserves particular support to help overcome the many difficulties in accessing international markets. In this regard, the EESC considers it important to further develop the mobility of young people and future entrepreneurs to establish international contacts and understand the diversity of markets. Expanding the Erasmus Programme for young entrepreneurs would be desirable.

Initiatives aimed at encouraging networking among young entrepreneurs in professional networks are in place in two-thirds of EU Member States. Contacts and interactions with well-established entrepreneurs are crucial for promoting entrepreneurial success. These initiatives must be strengthened at both the local and regional levels.

Finally, the promotion of entrepreneurship should include a form of “right to a second chance” and the recognition of failure as a source of experience and skill acquisition. The aim is to reduce young people’s fear of risk and to set up risk prevention systems to ensure the sustainability of projects. This is also important for facilitating business takeovers by young entrepreneurs.

By Jean-Michel Pottier, Member of the EESC Employers Group and Chair of the Study Group of the Opinion SOC/852 EU Competitiveness and Youth Entrepreneurship.