A multi-million dollar technical cooperation project to increase economic opportunities and generate income for economically disadvantaged youths interested in becoming entrepreneurs was signed yesterday between the Inter-American Development Bank (IDB) and the Institute for Private Enterprise Development (IPED).
The project, Mentoring Model to Develop Young Entrepreneurs, will be implemented by the Guyana Youth Business Trust (GYBT), which falls under IPED and will run for four years. The general objective is to increase economic opportunities and generate income for economically disadvantaged youths interested in becoming entrepreneurs while the purpose is to improve and extend the outreach of the youth entrepreneurship model through partnership with the business community.
The project is part of a broader regional programme and is currently being executed in three other countries: Barbados, Trinidad & Tobago and Belize. The regional programme is designed to benefit at least 350 young entrepreneurs through the assignment of a mentor, the provision of financing, and training. Also benefiting will be at least 400 managers, business leaders and professionals who will be trained to be mentors for the young entrepreneurs and at least 590 individuals will benefit through having new jobs created as a result of the business initiative of the young entrepreneurs. Funding will be provided by the Multilateral Investment Fund.
General Manager of GYBT Taryn De Mendonca said the youth sector is the one in most need of development and quoting statistics noted that globally over 20% of unemployed youths can be entrepreneurs but only 5% get involved. She noted that for the Guyana project, the total sum provided would be US$560,000 ($112 million) with IDB funding being US$390,000 ($78 million) and GYBT contributing US$170,000 ($34 million). She stated that locally at least 90 persons would benefit with the hope that at least 100 persons from the business community would sign on. She added that the beneficiaries would be young Guyanese men and women.
To achieve its objectives, De Mendonca explained, the project will include three components: promotion and development of business mentors based on the concept of corporate social responsibility; orientation, training and financial support for the young entrepreneur initiatives; and development of a sustainable network through dissemination of results.
She said potential entrepreneurs would have to submit their business ideas, and after these are approved, they would be assigned a mentor, hence the need for experienced businesspersons to sign on and go through a period of training; financing and technical assistance would then be provided. Outreach activities to raise awareness of opportunities offered through the project would be carried out. Throughout the project, the results would be analyzed as a means of generating increased interest in the overall model.
IDB Country Representative Sergio Varas Olea, in brief remarks, said the future of Guyana lies in the growth of the economy through private sector investment. He noted that the initiative was important for the IDB and Guyana, as it would contribute to creating wealth and jobs for youth and the country.
He signed the agreement on behalf of the IDB while Executive Director of IPED, Dr Leslie Chin signed on behalf of IPED.
