the Social Economy Action Plan (SEAP) is now available in 23 EU official languages
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the Social Economy Action Plan (SEAP) is now available in 23 EU official languages

The European Commission has today presented an Action Plan to help the European social economy thrive, tapping into its economic and job-creation potential, as well as its contribution to a fair and inclusive recovery, and the green and digital transitions.

Please see here the document in 23 languages:

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021DC0778&qid=1640075004787

And read below general info on SEAP.

Social economy organisations are entities which put social and environmental purposes first, reinvesting most of their profit back into the organisation. There are 2.8 million social economy entities in Europe that employ 13.6 million people and which offer solutions to key challenges in our societies. They span a diverse range of sectors and forms, from care services to recycling; from cooperatives to social enterprises.

Enhanced support to the social economy not only creates jobs, but also allows organisations to increase their social impact across the EU. Today’s Social Economy Action Plan smooths the way for social economy organisations to prosper and grow.

The Commission proposes to act in three areas:

1. Creating the right conditions for the social economy to thrive

Policy and legal frameworks are key in creating the right environment for the social economy to thrive. This includes taxation, public procurement and State aid frameworks that have to be adapted to the needs of the social economy.

To address these issues, the Commission will propose a Council Recommendation on developing the social economy framework conditions in 2023. It will also publish guidance for Member States on taxation frameworks for social economy organisations and facilitate easier access to guidance on State aid. The Action Plan also aims to improve good practice on socially responsible public procurement and promote the targeting of the social economy outside EU borders.

2. Opening opportunities for social economy organisations to start up and scale up

Social economy entities should benefit from business development support to start up and develop, as well as to reskill and upskill their workers. For 2021-2027, the Commission is aiming to increase its support beyond the estimated €2.5 billion allocated to the social economy previously (2014-2020).

Among other actions, the Commission will launch a new EU Social Economy Gateway in 2023 to ensure social economy actors can find all the information they need in one place on EU funding, policies, training and initiatives. It will also launch new financial products in 2022 under the InvestEU programme and improve access to funding. In 2022, the Commission will also set up a European Competence Centre for Social Innovation.

3. Making sure the social economy and its potential are recognised

The Action Plan aims to make the social economy more visible and improve the recognition of its work and potential. The Commission will carry out communication activities emphasising the role and specificities of the social economy.

Furthermore, the Commission will launch a study to collect qualitative and quantitative data to better understand the social economy across the EU. It will also organise training courses for public officials on various topics with relevance for the social economy, promote the social economy at regional and local levels by fostering cross-border exchanges, and much more.

With today’s Action Plan, the Commission is also launching a “transition pathway” to help the green and digital transitions of the social economy in dialogue with public authorities and interested parties.The Commission seeks public views on the transition pathway through an EU survey open until 28 February 2022.

Background

The social economy includes a variety of businesses, organisations and legal entities, such as social enterprises, cooperatives, mutual benefit societies (a specific type of collective insurance), non-profit associations and foundations. They put people and the environment at the centre of their mission and reinvest most of their profit back into the organisation or a specific social cause. They are governed in a participatory, bottom-up way.

Building on the Commission’s 2011 Social Business Initiative, the Action Plan is the result of an extensive consultation process with citizens and stakeholders. More information can be found in the Staff Working Document accompanying the Social Economy Action Plan and in the Staff Working Document on the transition pathway on social economy.

Related documents on the European Commissions’ website: https://ec.europa.eu/social/main.jsp?langId=en&catId=89&furtherNews=yes&newsId=10117 

Factsheet: Social Economy Action Plan (2021)PDF

Communication: Social Economy Action Plan (2021)PDF

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This publication has been prepared within INDIGISE project. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.

Youth initiative: a framework for youth entrepreneurship
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Youth initiative: a framework for youth entrepreneurship

We want to share with you the report   written by Rossella Soldi (Progress Consulting S.r.l.) and Simona Cavallini (Fondazione FORMIT). It does not represent the official views of the Committee of the Regions.

Read the whole document here:

https://cor.europa.eu/en/engage/studies/Documents/Youth_initiative/youth-initiative.pdf 

More information on the European Union and the Committee of the Regions is available online at http://www.europa.eu and http://www.cor.europa.eu respectively. Catalogue number: QG-04-17-375-EN-N ISBN: 978-92-895-0922-0 doi:10.2863/068300

 

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This publication has been prepared within INDIGISE project. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.

Funding opportunities for social economy – update 2022

Funding opportunities for social economy – update 2022

Social economy and inclusive entrepreneurship are topics with transversal relevance for a variety of policy fields and economic sectors. Funding opportunities can therefore be found in most EU funding programmes.

Some of these programmes include dedicated measures. Others can be tapped into by social economy and inclusive entrepreneurship actors, even if they do not target them explicitly. This official EU webpage https://ec.europa.eu/social/main.jsp?catId=1561&langId=en  provides an overview of the most relevant EU funding programmes.

Employment and Social Innovation Programme and its 2021-2027 successor

Microfinance and social enterprise finance are key enablers for the development of social and inclusive entrepreneurship. This is why the EU is providing support to microfinance and social enterprise finance providers in the form of both repayable and non-repayable finance to enhance their potential in creating jobs and building a more social and inclusive Europe.

Microfinance

Lack of access to finance is one of the main obstacles micro-enterprises are facing. A significant unmet demand for microfinance exists for vulnerable groups, which face difficulties in accessing conventional credit markets, for start-ups, as well as existing micro-enterprises.

Microcredit providers play an important role in channelling EU support to entrepreneurs. However, this young and growing sector is quite heterogeneous due to the disparity of legal and institutional frameworks in Member States and the diversity of the microcredit providers.

The Commission has launched the following support and actions targeting microcredit providers under the Employment and Social Innovation (EaSI) programme:

  • a European Code of Good Conduct for Microcredit Provision  defining a unified set of standards for the microfinance sector in Europe. To be able to benefit from an EaSI Microfinance Guarantee, non-bank microcredit providers have to sign up to the Code and banks have to endorse it;
  • a guarantee for microcredit providers to increase lending to micro-entrepreneurs;
  • a Technical Assistance programme, which provides an institutional assessment or a financial rating to microcredit providers, and supports the evaluation of their compliance with the European Code of Good Conduct for Microcredit Provision. It also provides capacity building and operates a dedicated helpdesk for microfinance providers;
  • an EaSI MicPro database which acts as a source of information about microcredit providers in each country.

Social enterprise finance

As highlighted in the Social economy action plan, lack of access to finance is one of the obstacles for social entrepreneurship to thrive.

The EU is enabling access to investments of up to EUR 500,000 through the Programme for Employment and Social Innovation (EaSI). Available support includes a guarantee, capacity building investments, a funded instrument and advisory support for social enterprise finance providers.

In addition, equity investments in social enterprises have been piloted under the European Fund for Strategic Investments (EFSI) Equity instrument, namely via funds linked to incubators/accelerators and co-investments with social business angels.

To complement financial instruments providing repayable finance, the Commission provides grant support with a view to addressing specific market gaps:

  • Grants aimed at covering part of the transaction costs of intermediaries. The grant serves as an incentive to intermediaries for making investments of below EUR 500,000 in social enterprises. Eight projects were selected in 2017 and an additional eight projects in 2019.
  • Grants for boosting the development of social finance markets in Europe: 21 pilot projects were selected in 2013, a further 20 projects were selected in 2016, and 14 projects in 2019. The projects served as basis for developing a practical guide entitled A recipe book for social finance.

The Commission also provides operating grants for EU-level networks active in the areas of microfinance and social enterprise finance. Moreover, Member States have the opportunity to support both microfinance and social enterprises through the European Social Fund.

In the period 2021-2027, the support to microfinance and social enterprises will be continued and reinforced under the InvestEU programme. More information will be available soon on the InvestEU portal. In addition, the Employment and Social Innovation (EaSI) strand under the European Social Fund Plus will complement the InvestEU instruments with EU level support for the development of social enterprises, the emergence of a social investment market, and the development of the market ecosystem around the provision of microfinance.

Other relevant EU funding programmes during 2021-2027

The European Social Fund Plus (ESF+) is an important funding source for promoting the social economy and social innovation at national, regional and local levels. Social economy organisations are well placed to achieve most of the ESF+ specific objectives, notably in relation to enhancing the inclusiveness of labour markets and access to quality employment.

At the EU level, the Commission will support transnational cooperation specifically with a view to accelerating the scaling up of social innovation.

In addition to dedicated funding provided via the InvestEU and ESF+, several other EU funding programmes are providing opportunities for the social economy, social innovation and inclusive entrepreneurship:

The European Commission makes use of the Funding & tender opportunities portal to ensure applicants have a common entry point to EU grants.

Information on how to access this funding has been gathered in an European Funding Toolkit by the Euclid Network and in a Funding Toolkit for Early-Stage Social Innovators developed in the context of the European Social Innovation Competition.

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This publication has been prepared within INDIGISE project. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.

How can social innovation and social entrepreneurship build the resilience of the future workforce?
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How can social innovation and social entrepreneurship build the resilience of the future workforce?

With digitalization, globalization and an aging population the landscape of work is rapidly changing. Projections show that in the next 10 years in the workforce constant upskilling and digital dexterity will outweigh tenure and experience. Hence, young people and adults are confronted with navigating a highly interconnected and volatile world where the jobs, technologies and societal challenges of tomorrow may not yet presently exist nor can they be anticipated. This  emphasizes even more the need for both increasing the participation of learners  as well as to develop learning systems that aid people to create a positive career trajectory and equip them with professional resilience in circumstances with rising levels of uncertainty.
Adults that engage in lifelong learning  have a higher likelihood of being an active part of the workforce, have improved health and are overall more civically engaged. While there are clear socio-economic benefits, the engagement remains low. On one hand, the EU recognizes and emphasizes that adult learning not only benefits the individuals in question, but also has a positive impact on  companies and society in general, then again it has also failed to attain its own  benchmark of 15% adult participation in learning by 2020. In February 2021, a new target was set to at least 47 % to be reached by 2025. An increase of 32% is an ambitious goal that is not to be reached without applying innovative approaches for creating future-ready adult learning systems. 

Numerous EU documents and recommendations state that mobile devices, open educational resources and social media have a great potential for widening access to adult learning. Furthermore, in the face of the increasingly complex societal issues, social entrepreneurship and social innovation emerge as a key policy priority in the EU with the goal to build up the innovation capacity of EU economies as well as the socio-economic resilience of communities. Yet the quality of and level of access to digital Open Education Resources on the topics of social innovation and social entrepreneurship for adult learners  does not adequately reflect these trends or priorities. 

Focusing on training youth and adults in the incremental steps toward specific jobs is no longer a sufficient strategy. Instead, focus needs to be placed on capacity building and developing adaptable and transferable skill sets. Social entrepreneurship and social innovation offer an avenue to help prepare adults of all ages to meet the demands of both the current and the future job market while also contributing to community development. Social entrepreneurship not only promotes a problem solving mindset, innovative and creative thinking and values-based leadership but also can help develop purpose by facilitating social conscience, prosocial behavior and sense of personal agency. However, there is a great need to tackle the core issue of a lack of sustainable, future-ready adult learning systems that help build socio-economic resilience of the future workforce.

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This publication has been prepared within INDIGISE project. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.

Webinar: Social enterprise partnerships with corporates – succesful cases from the UK
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Webinar: Social enterprise partnerships with corporates – succesful cases from the UK

Social Entrepreneurs in Denmark project Rummelig Genstart hosted a webinar Successful English Social Enterprise Partnerships with Corporates Thursday 17 March 2022.

You can see the webinar here

Background for the webinar.
England is one of the countries in the world with the most growing sector for social enterprises. This applies both in relation to political interest and in relation to the activities initiated by various actors to support social enterprises. This includes e.g. social investment, support schemes and accelerator and competency programs. The UK also has one of the world’s strongest advocates and member organizations for social enterprises – Social Enterprise UK, which has done a great job of building partnerships between social enterprises and private enterprises.

At the event there was presentations from inspiring examples of English social enterprises that have formed successful partnerships with traditional private enterprises.

Also Social Enterprise UK’s work to promote partnerships between corporates and social enterprises through their Buy Social Corporate Challenge campaign was presented.

The webinar is useful if you want to have further knowledge on how social enterprises and corporates can build partnerships, that can create large positive impact.
Also the webinar gives you insight in effective social enterprise business models that work really well in terms on creating positive impact.
More information on the three presenters:

Mark Gale, founder and ​Chief Executive of Gloucestershire Gateway Trust
Mark Gale is a former UK Social Entrepreneur of the Year. He has previously advised government on social inclusion, and been a national board member of the housing charity Shelter.
Gloucester Services is pioneering model of social investment, bringing to life the vision of residents of Gloucester housing estate and turning the nearby motorway into an asset through the creation of sustainable jobs and income.
The partnership between the Westmorland Family and the community development charity Gloucestershire Gateway Trust, both of whom have a stake in the business, is a great example that when companies and charities work together, they are able to create greater value than they would be able to create individually.
Gloucester Services has exceeded its charitable goals and created over 400 jobs, employing over 80 people specifically from ‘target’ communities. Making communities more resilient and supporting residents to develop their employability skills and become job ready is a goal for both the charity and the company.
The partnership is also an example of a social enterprise model that creates social value locally on a large scale.
Gloucestershire Gateway Trust: www.gloucestershiregatewaytrust.org.uk
Gloucester Services: www.gloucesterservices.com

Dr. Mick Jackson, Founder and CEO of The WildHearts Group  
Mick Jackson is a serial entrepreneur, author, ex chart-topping rock singer and the founder of The WildHearts Group – a portfolio of companies committed to creating global social change. To date, WildHearts have transformed over 1,500,000 lives globally.
Mick’s work has been recognised globally; he has received numerous honorary doctorates, been EY’s Entrepreneur of the Year and is the second only recipient of the highly prestigious Babson Social Innovation Award from the world’s top school in entrepreneurship.
The WildHearts Group is a portfolio of companies committed to creating global social change.  WildHearts has been recognised as a world leading B2B social enterprise, is Carbon Neutral, a B-Corp and a signatory to the United Nations’ Global Compact. Its activities address over 50% of the Sustainable Development Goals (SDGs) and it is recognised as one of the top 100 global businesses addressing the SDGs.
The WildHearts Group delivers office consumables business services, document management and purpose-driven talent development programmes to companies such as Nestlé, SAP, Barclays and Zurich. All its social and environmental initiatives are supported by the profits and activities from WildHearts’ businesses.
Find out more, here: https://www.wildheartsgroup.com

Jennifer Exon, Director of Business and Enterprise at Social Enterprise UK (SEUK)
Jennifer is leading on the SEUK’s corporate market building work which includes the Buy Social Corporate Challenge.  is an ambitious initiative that aims to get a group of high-profile companies to open up their supply chains to social enterprises and jointly buy in for £ 1 billion from social enterprises. Among the participating companies are i.a. SAP, Thomson & Thomson, Deloitte and PWC.an initiative seeing some of the UK’s biggest businesses open up their supply chains to social enterprises.
Jennifer is working to drive forward Social Enterprise UK´s work in building markets for social enterprises, trying to open doors and creating as many opportunities as possible for social enterprises.
Jennifer has spend over seven years at Business in the Community (BiTC) where she was working as their Enterprise and Culture Development Director. She also headed up BiTC’s arc programme which has supported the development and growth of social enterprises in some of the poorest communities in the country.
More about Buy Social Corporate Challenge at: www.socialenterprise.org.uk/corporate-challenge

 

 

The world’s first social enterprise speakers agency

The world’s first social enterprise speakers agency

The English charity Expert Impact, which in recent years has matched more than 400 social entrepreneurs with mentors, has just launched the world’s first social enterprise speakers agency named Expert Impact Speakers. They aim to capture a piece of the growing market for speakers and has launched the company with a diverse mix of social entrepreneurs, entertainers and thought leaders embracing topics within social and environmental change and impact.

Among the speakers, one can e.g. find:
Chris Moon, who in 1995 blew up parts of his right arm and leg in connection with a landmine explosion. He has since become a well-known lecturer on the topics of change management, motivation, leadership and the concept of limitation and is known for his great charitable work for the benefit of i.a. victims of landmines.

June O’Sullivan, an Irish social entrepreneur and author best known for her work in teaching young children. Since 2004, she has been the director of England’s largest social enterprise  childcare organisation London Early Years Foundation.

Mark Andrew Watson is a British comedian and novelist. He has appeared in a number of films and TV series and has also hosted a  series of broadcasts on BBC on how to understand life and the world around us.

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According to Expert Impact’s CEO Karen Lynch, it is clear that there is a large market for engaging and inspiring speakers. At the same time, when customers are booking speakers at Expert Impact Speakers, they will contribute to creating a positive social and environmental impact. In this way, larger companies will be able to show their employees and stakeholders that they prioritize impact. It is absolutely crucial if companies are to attract the new generations of employees and talents that they can show that they are looking to do more than just make money. Expert Impact also believes that this means that corporates and their employees have a growing interest in hearing how businesses with social and environmental goals work, and Expert Impact Speakers has a wide range of social entrepreneurs among its speakers who can share that knowledge with them.

Expert Impact Speakers offers speakers for all kinds of events, including conferences, awards ceremonies and team building days. At the same time, the company differs from other speakers agencies,  by being a social enterprise, and by specializing in speakers who are diverse, ethical and passionate about changing the world for the better. Common to the speakers is also that they want their speakers fee to contribute to a better world.

Expert Impact Speakers launches with around 70 speakers and expands the the selection of speakers on an ongoing basis.Capture2

All profits from Expert Impact Speakers will be used to support leaders of social enterprises and charities through Expert Impact Mentoring. It is a program that, as previously mentioned, matches social entrepreneurs with successful business people, who then act as mentors for the entrepreneurs over a longer period of time.

Expert Impact’s latest impact report showed that for the social entrepreneurs who had been through the mentoring programe, their turnover had increased and jobs were created in the six months after mentoring sessions. 97% of participants said they would recommend the mentoring programe to others.

More about Expert Impact Speakers at: www.expertimpact.com/Speakers

About Expert Impact
Expert Impact was founded as a charity in 2014.
Through Expert Impact Mentoring, entrepreneurs and managers of social enterprises and charities can “borrow” a business expert for free to seek advice on business or organizational challenges. More than 70 business people are part of the mentoring program and more than 400 charitable and social enterprise leaders have participated in the program to date. Social entrepreneurs are matched with experts in relation to the particular business challenge they want help with.
More about Expert Impact at: www.expertimpact.com

Source: ResponceSource  and Expert Impact’s website

Photo by Wan San Yip on Unsplash

This publication has been prepared within SENBS project No. 2020- 1-EE01-KA204-077999. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.

Young People and Social Innovation in Europe
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Young People and Social Innovation in Europe

By Ljupka Janevska.

“Social innovation is the process of developing creative ideas that will eventually ‘’grow’’ into practical solutions, which will improve the overall wellbeing of the community. The primary goal of implementing or designing a new social innovation is to solve different systemic issues that will hopefully contribute in increasing the enviorenment value. However, the basics of implementing a new social innovation can be found in the energy and passion of the young people, who are brave enough, not only to identify, but also to challenge and address global problems that are worthy of attention and investment.

In Europe, the process of youth social innovation is a growing challenge. Fortunately, there are a lot of successful social innovations in Europe that aim to raise awareness of the positive outcome that social innovations can have on young people and communities.

  • Student integration in employment

Young graduates often struggle to find their first employment experience. In Latvia, young people are almost twice as likely to be unemployed compared to the rest of the population, due to lack of a professional network and skills experience. The youth social innovation of ‘’The Demola platform’’, established in 2014 in Finland, connects companies with university students. The companies can submit a specific problem situation for students to address , and by participating in problem-solving workshops the students are developing their skills as potential problem-solvers instead of as young people in need of work experience.

  • Active youth participation in local decision-making

One of the priorities of the EU is to provide meaningful social, civic and political engagement opportunities for all young people. Young people prefer to support causes that are directly relevant to them, and they usually engage in them through alternative participation methods, such as volunteering or online support. ‘’The Youth Participatory Budgeting (YPB)’’ is a Portuguese youth social innovation that aims to foster an active participation of young people in the decision-making process, and thus promote a stronger sense of citizenship, through an online platform that serves young people’s need for democratic participation.

●     European exchange programme for young Entrepreneurs

Erasmus for Young Entrepreneurs is a youth social innovation that provides ambitious young European entrepreneurs with the necessary skills to start or successfully run a small business in Europe. New entrepreneurs gather and exchange knowledge and business ideas with an experienced entrepreneur, with whom they stay and collaborate for a period of 1 to 6 months. ‘’Erasmus for Young Entrepreneurs’’ is financed by the European Commission and operates across the Participating Countries with the help of the local contact points, competent in business support.

  • Youth opportunities in the economy

‘’REvive Greece’’ is an interesting social innovation in Greece that helps young people from the most vulnerable groups (unemployed Greeks, refugees, migrants, etc.). ‘’REvive’’ is a registered non-profit mission that has the goal to integrate these vulnerable, social groups into the socioeconomic system by helping them to gain skills in the IT sector.

Conclusion

All over the world in the past decades, there has been an increased interest in social innovation as a way to achieve sustainable and economic growth. Today, social innovation as a valuable practice and worldwide movement is helping to solve some of the world’s most pressing problems with new solutions such as fair trade, distance learning, mobile money transfer, restorative justice, and zero-carbon housing. But, besides solving, social innovation by understanding and identifying a problem contributes in changing people’s beliefs , perceptions and practices about social enterprises, business engagement, and philanthropy. So, the rise of social entrepreneurs and social enterprises is not only encouraging the mobilization of people in the innovation process but also providing the’’force’’ for economic growth and social equality in the enviorenment.”

 

Source: https://digitalsocialinnovation.org/young-people-and-social-innovation-in-europe/

 

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This publication has been prepared within INDIGISE project. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.

Social Entrepreneurship – new book on social entrepreneurship

Social Entrepreneurship – new book on social entrepreneurship

Social Entrepreneurship – A Practice-Based Approach to Social Innovation is a new textbook with a practice-based approach to social innovation by J. Howard Kucher and Stephanie E. Raible.

The book provides in an easily accessible way a comprehensive guide to the various building blocks needed to create a sustainable social enterprises. At the same time, it takes a closer look at how different core elements can contribute to either success or failure for the social enterprises.

An important element of a well-functioning social enterprises is the balance between effective business practices and effective social innovation. In this regard the book analyzes the key skills needed to succeed and points out both what works and what does not work.

With its practical approach, the book provides a good understanding of how social entrepreneurs can transform good ideas into well-functioning companies that can help solve some of the major challenges the world faces and can create lasting and positive change.

Through the book’s discussion questions and various suggestions for activities, students get help with both learning and debate to further the understanding of the issue. Through a detailed and well-described case study as well as through anecdotes, examples and analogies, students are helped to see how a social enterprises works in practice. The book is structured with learning objectives and chapter summaries, that guide the student through key topics such as product development, idea generation, social change theory, marketing and operating structures. Finally, there is a reference to a number of resources where students can seek additional knowledge.

Social entrepreneurship and social enterprises are important elements when it comes to solving some of the major challenges the world is facing in these years (climate impact, loss of biodiversity, inequality, pollution ..).

The book is a great place to start for the growing number of social entrepreneurs who want to tackle these challenges.

About the authors
J. Howard Kucher is an Associate Professor of Social Innovation at the University of Maryland at Baltimore in the United States and Stephanie E. Raible is an Assistant Professor of Social Innovation and Entrepreneurship at the University of Delaware in the United States

Social-Entrepreneurship-A-Practice-based-Approach
FACTS:
Title: Social Entrepreneurship – A Practice-Based Approach to Social Innovation
Authors: J. Howard Kucher and Stephanie E. Raible.
Publisher: Edward Elgar Publishing
Release Date: January 2022
ISBN: 978 1 78897 422 6
The book is 320 pages and can be purchased here

 

This publication has been prepared within SENBS project No. 2020- 1-EE01-KA204-077999. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.

Youth Entrepreneurship and the 21st Century Economy
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Youth Entrepreneurship and the 21st Century Economy

We highly recommend you to follow the discussion by Philantropy Rountable  on the youth entrepreneurship in the face of the 21st Century Economy.

 

“Philanthropy Roundtable works with donors who want to build strong communities by introducing them to organizations that help people access economic opportunity. This includes programs that teach young people the skills and mindsets they need to succeed as entrepreneurs in a 21st century economy.

The Roundtable recently interviewed three leaders of nonprofit organizations involved in this work to seek their perspectives on the importance of youth entrepreneurship education and the challenges and opportunities on the horizon for aspiring entrepreneurs. They are Kylie Stupka, president of Empowered; Nicole Cassier-Mason, chief executive officer of Lemonade Day and Ayele Shakur, chief executive officer of BUILD.

Roundtable: How does an education in youth entrepreneurship lead to success in the 21st century economy for those who receive it and for society at large?

 Kylie Stupka: Like any career path, starting a business may not “work” for everyone — but the components of an entrepreneurial mindset are universally applicable.

An entrepreneurial or growth mindset helps young people see challenge as an opportunity, not an obstacle. The development of essential skills like innovation, confidence and collaboration prepares students for their careers and lives. Experience-based, individualized, real-world relevant learning also helps graduates to create and seize opportunities. This type of education generally leads to happier, healthier people, who are more likely to positively contribute to society.

Our organization, Empowered, works with K-12 teachers who guide students through learning experiences that help them discover their unique passions and skills so they can, in time, succeed in our modern marketplace.

Nicole Cassier-Mason: Entrepreneurship is about much more than starting your own business. It’s a way to define yourself and make an impact on the world.

Our vision is for all children to be introduced to entrepreneurship through the real-world experience of starting their own business:  a lemonade stand. Through our licensed program, children learn how to set a goal, make a plan and work the plan.

By running their own lemonade stand, students understand the importance of earning, saving and spending money wisely. These skills are proven to ensure a lifetime of freedom from financial burdens, enabling important life steps, such as access to college, employment, housing and health care. By planting the seed of innovation and building foundational skills, youth are prepared to transition to what comes next in life.

Ayele Shakur: I truly believe our next generation of young people need entrepreneurship education to develop the skills necessary for success in a 21st-century economy. With the global workforce and economy rapidly changing, many of today’s jobs will not exist tomorrow and many of tomorrow’s jobs have yet to be invented.

We need to create a generation of young people who are prepared to thrive in an uncertain world, equipped with the mindset and ability to adapt, pivot, invent and reinvent within a digital, socially responsible and equitable society.

At BUILD, we teach our students the 21st-century “Spark Skills”: communication, collaboration, problem-solving, innovation, grit and self-management. Through the growth of their own businesses, our students demonstrate acquisition of and increased proficiency in these skills, and as they do, they grow in knowledge and self-confidence. Ultimately, entrepreneurship education helps young people become the CEOs of their own lives.

Roundtable: Why do you believe traditional schools do not train students in youth entrepreneurship and how does your organization attempt to fill the gap?

Kylie Stupka: Our traditional, national model for K-12 education is outdated and broken. Teachers and schools are not evaluated on the long-term value they create when they prepare students for life; they are judged by standardized test scores and forced rankings. There is no incentive to truly prepare students for life in the current system.

Empowered aims to fill that gap by reimagining an education system that better serves students and society, thanks to its community of great teachers. You can see the benefits in the 30%+ of students who start their own businesses through our education programs. And you can see it in the 95%+ of teachers who cite our organization’s support as a reason they remain in the classroom at a time when dissatisfaction and exodus are at an all-time high nationally.

Nicole Cassier-Mason: Traditional school learning is incongruous with the new world in which we operate. Youth entrepreneurship isn’t a textbook activity that may not be applicable in real life. It’s about things like negotiating terms, seeking investments, studying geography, dealing with difficult customers and using your creative and technical skills — all while dreaming and innovating.

Lemonade Day plays a vital role in the education and workforce ecosystem. We help prepare youth for life by introducing them and their families to an entrepreneurship model that provides tools for socioemotional learning, financial literacy, mentorship and sound business acumen. We develop strategic partnerships with schools, after-school alliances, community and economic development organizations, religious institutions, businesses and more to improve access to youth entrepreneurship education.

Ayele Shakur: Unfortunately, our outdated, 19th-century education system was designed to teach students to find the “right answer,” to fear failure and to limit creative thinking. Schools have become over reliant on standardized testing in order to prove growth and attainment of skills. However, life isn’t graded on a scale or a curve. Success in life is often determined by how you can overcome obstacles, demonstrate flexibility and exercise compassion.

At BUILD, our program is designed to help young people, particularly those from under-resourced communities, start real businesses in the ninth grade based on their passions and interests. Students learn and develop skills outside of what they traditionally learn in the classroom. Examples of success include students like Mehrin, a BUILD participant in New York City, who overcame adversity when her team was able to pivot, adapt and pitch their business successfully despite last-minute challenges they faced with their product.

Roundtable: What are the challenges and opportunities on the horizon for youth entrepreneurship?

Kylie Stupka: One major challenge is ensuring change-making teachers have support and freedom in their careers and classrooms. Our future needs passionate teachers to “fix” our schools and reverse the trend of underprepared graduates. Teachers choose the profession wanting to build a brighter tomorrow, yet 40% quit within five years out of frustration.

Teachers are also our best opportunity. Educators, second only to parents, have the opportunity to influence the paths and outcomes of young people. Many of the frustrations they experience stem from a lack of resources, support and trust. Empowered aims to provide relief in the form of tools and encouragement as they collaborate to re-imagine schools from the bottom up.

Nicole Cassier-Mason: On the opportunity front, we must meet our children where they are and find creative, relatable ways to inspire them into action. Youth receive information differently today – on social media and YouTube. These are dynamic sources of information that shape their minds, perspectives, experiences and beliefs. By contrast, traditional school learning has been about sitting down and listening to the teacher.

Lemonade Day is committed to making youth entrepreneurship fun, engaging and experiential. Through our new digital platform, we borrow from the entertainment industry to make learning more entertaining.

Also, concepts around financial literacy and career development historically aren’t introduced until high school or college, assuming a youth is college bound. Studies prove such concepts must be introduced in early childhood to be lasting. This is especially true in underserved communities, and is an opportunity that should be undertaken.

Ayele Shakur: I think the biggest challenge that our industry faces is a lack of recognition that entrepreneurship education should be taught as a foundational course in every high school across America. Leaders in our education system need to be cognizant that the skills students learn through entrepreneurship are as important as what they learn in geometry or algebra.

Students today often don’t see the relevance in what they’re learning, and we’re at a critical moment in our nation’s history to make education relevant. With the spotlight on post-pandemic recovery and growing racial and social inequities, it’s time we equip young people with the skills they need to lead as a generation of entrepreneurial changemakers.”

For a deeper discussion on the subject of youth entrepreneurship, watch the Roundtable’s webinar Youth Entrepreneurship: Effective Community Based Programs featuring Kylie Stupka, Nicole Cassier-Mason and Ayele Shakur. 

Source: https://www.philanthropyroundtable.org/home

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This publication has been prepared within INDIGISE project. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.