Rural Youth Enterprise Initiative(RYI)
Published on April 1, 2014 um 13:38
Summary of your idea
Youth represent about 73% of Kenyas population. As a result youths are major actors in economic development. 80% of the Kenyas population lives in rural communities. Despite the youth bulge, youths in Kenya have the highest unemployment rates. The unemployment rate is estimated to be double the average unemployment rate which is at 12.7 % with highest unemployment being among females, and those in rural areas (Kenya Youth Employment Challenge, UNDP). Promoting youth enterprise has gained great attention in Kenya. The government in 2006 launched Youth Enterprise Development Funds. Other players have launched several programs aimed at the vulnerable members of the society-youths and women. However, accessing the YEDF as well as other programs aimed at youths has proved to be great challenge, especially to youths in the rural communities. The programs are fragmented and poorly coordinated. Youths in the rural community also lack information concerning these opportunities. Young people also face other hindrances such as: Discrimination based on their age Discriminatory financial policies Exclusion from policy formulation on issues directly affecting youth, Corruption greatly affecting availability of services. Wrong entrepreneurship attitude. Lack of adequate business knowledge Lack of mentors and role model. Independence of other entrepreneurs. Our venture hopes to help youths overcome these challenges and achieve their highest enterprenual potentials. We seek to build infrastructures that will see many youth led enterprises started, grow to maturity and birth other enterprises. Our main objective therefore is to: Give rural based youth opportunity to imagine, startup and grow their business ideas and potentials.
Expected impact of your idea on sustainable development
The pilot project is meant to be implemented in Homa-Bay county of Western Kenya. Our first year target is 25 business ideas. Our venture will sponsor a youth business plan competition, evaluate submission, reward the top 10 ideas. Other top 15 ideas will be posted on our website and availed to willing investors to fund through online investing. Success is defined by the number of successful business ventures established in a year, the continuity of the new business ventures, independence of the entrepreneurs by 3rd year of operation, the default/payback rates on the loans, the number of investors attracted by this project and the overall impact on the livelihood of the entrepreneur and rural community at large. The success will in turn be reflected in the improved living standards of rural based youth family. We hope to achieve sustainability via imparting business and financial knowledge and skills, promoting entrepreneurship culture among youths,promoting innovative thinking and offering support to ensure already established youth enterprise thrive.
Plans for implementation and sustainability
Our objective above is attainable through: Helping youth develop their ideas through business planning workshops. Connecting rural based youth community to successful youth entrepreneurs and mentors. Case studies of successful business ventures around the world (part of the mentorship). Availing funds. Two ways of Funding: 1. E-funding: Connecting youths with viable business ideas to investors from around the World who invests in form of loans and grants through internet. 2. Business plan competition: Our venture also seeks to startup an annual business plan competition. Top 10 business ideas each receive grants as specified in the competition and in proportion to their budget. The other top 15 businesses ideas are posted on web portal and availed for funding by investors. The business model: A rural based young entrepreneur submits an idea for funding,a local based team-committee(5) led Administrator with knowledge of Youth Enterprise Development,2 credit officers,2 youth representatives - evaluates the viability of the idea. If the idea is viable, the entrepreneur is invited to participate in a Business planning and implementation training. The business idea is uploaded to the website and made available for funding.An investor bids of business(es) of interest. One business can be funded by several investors.Our venture chooses the lowest bid(in terms of interest charged).The local team facilitates the exchange of funds between the investor and the entrepreneur, ensuring that the entrepreneur pays back the loan promptly. Our venture will charge additional 5% per Enterprise for service fee.This fee is used to pay for expenses related to processing. Our venture will actively be involved in the lives of entrepreneurs ensuring that they acquire adequate skills and entrepreneurship culture necessary for the growth and multiplication of their ventures. The following are the current possible sources of funding: 1. The founder fund: up to $2,000 yearly(Ksh. 160,000). As the founder, I will raise these finances from my own fundraiser efforts(Dinner's, concerts,approaching corporate to fund the project, friends contribution). 2. Matching funds on Founder Fund from Jubilee Village Project and Angaza Africa(non-profits) 3. Online investors- this should contribute to 80% of the funding for business ideas.
I am a young social entreprenuer, Kenyan based in the USA.I am a bright Anthropology student at Aims Community College. I am a member of Phi Theta Kappa Honors society due to my academic achievement. I am currently involved as a community Liason with two non-profits working in rural villages of Kenya-Jubilee Village Project, and Angaza Africa. I am the Co-founder of the latter.
Stage of Idea
Your idea has a positive impact on
poverty reduction, youth