Empowerment And Economic Dynamism In A Rapidly Globalizing Economics Essay

As stated by Chigunta ( 2002 ) , “ The publicity of entrepreneurship as a possible beginning of occupation creative activity, authorization and economic dynamism in a quickly globalizing universe has attracted increasing policy and scholarly attending ” and Cameroon is of no exclusion. Despite the attempts made in turn toing the issue, jobs of unemployment as experienced by the educated young persons and uneducated but skilled young persons have become a major job in many developing states. A Poverty Reduction Strategy Paper ( PRSP ) study published in 2003 by the Cameroon authorities identified youth unemployment to be a major job in the state. Cameroon has a comparatively vernal population with 40 per centum of its population being below 15 old ages and two 3rd being under 30 old ages. The PRSP study identified the mean age of the state ‘s population to be 22 old ages. Although the high proportion of immature people is considered as an plus by the PRSP study, it is nevertheless mounting force per unit area on the labour market.

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Despite the annual addition in the figure of kids go toing school and those finishing third instruction, 1000000s of immature people face black employment chances ( Longe Report, 1992 ) . Harmonizing to the ILO ( ILO publication, 2007 ) , approximately 400 million new occupations would be needed to absorb today ‘s young persons. Due to this diminution in occupations and the rise in the figure of those unemployed, immature people are forced in the informal sector. Factors that led to the outgrowth of high unemployment rates in the state can be traced as far back as 1980s, the epoch during which Cameroon was hit by economic crisis. The chief purpose of this survey is to excite policy argument on the possible benefits of entrepreneurship as a feasible mechanism to control young person unemployment, obstacles that base in its manner, and policy steps and schemes that can be initiated to back up the plan.

Aims of Study

The aim of this survey is to analyze the restraints that youths face in geting employment and the pressing demand to point those affected towards implanting self-employment and entrepreneurship through vocational and entrepreneurial preparation plans as a mechanism to control unemployment. Practical recommendations are suggested to Government and young persons to get the better of these jobs and to guarantee that young person as enterprisers sufficiently contribute to the economic system and empower themselves economically.

Research Questions

How can entrepreneurship development kerb young person unemployment in Cameroon?

This inquiry aims at sketching the different mechanisms of looking at entrepreneurship. To be able to reply the above inquiry, the undermentioned inquiries were formulated as a usher:

What is the state of affairs of young person enterprisers in Cameroon?

What are the restraints faced by young person enterprisers?

What are the policy measures to advance entrepreneurship?

1.3 Significance of the Study

This survey will arouse policy treatment on the advantages of young person entrepreneurship, the barriers and restraints and above all propose policy recommendations on the possible schemes which could be implemented to better this sector.

Chapter 2

An overview of Cameroon

The Republic of Cameroon is a unitary democracy of cardinal and western Africa. It portions boundary with Nigeria in the West, Chad in the nor’-east, Cardinal African Republic in the E, Equatorial Guinea, Gabon and the Republic of Congo to the South. At the Gulf of Guinea and the Atlantic Ocean lies Cameroon ‘s coastline on the Bight of Bonny. Due to its geological and cultural diverseness, the state is called “ Africa in Miniature ” . There are natural characteristics such as beaches, comeuppances, mountains, rain forests and savannas. Mount Cameroon located in the south West is the highest point in the state. The largest metropoliss are Douala, Yaounde and Garoua. Cameroon is much diversified as it is made up of over 200 cultural groups talking different local linguistic communications. The state is celebrated for its native manner of music such as Makossa and association football. The official linguistic communications are Gallic and English. The tabular array below shows the chief demographic and economic statistics of the state therefore:

State facts

Population: 20,129,878

Age construction:

0-14 old ages: 40.5 % ( male 4,027,381/female 3,956,219 )

15-64 old ages 56.2 % ( male 5,564,570/female 5,505,857 )

65 old ages and over: 3.3 % ( male 300,929/female 356,335 ) ( 2011est. )

Median age: 19.6 old ages

Population growing rate: 2.082 %

Birth rate: 32.49 births/1,000 population

Death rate: 11.66 deaths/1,000 population

Life anticipation at birth: 54.71 old ages

GDP- Per Capita ( PPP ) : $ 2,300 ( 2011est. )

Labor force: 8.083 million ( 2000est. )

Unemployment rate: 30 % ( 2000est. )

Population below poorness line: 48 % ( 2000est. )

HIV/AIDS – Adult prevalence rate: 5.3 % ( 2009est. )

Beginning: CIA World Fact book ( 2012 )

Economically, Cameroon has one of the best-endowed primary trade good economic systems in Sub-Saharan Africa because of its modest oil resources and favourable agricultural conditions. Despite the rich natural resources at its disposal, the state faces serious challenges like any other developing state such as dead per capita income, high rate of unemployment, public service being the chief employer, corruptness and an unfavourable concern clime. Harmonizing to Fondo Sikod ( 2001 ) the domination of the public sector can be traced as far back as 1960 during independency. During this period, precedence was given to the populace sector which accordingly saw the disregard or non-existence of the private sector.

2.1 YOUTH UNEMPLOYMENT

Harmonizing to the United Nations, young person is considered from 15 – 24 old ages. In Cameroon nevertheless, like in most African states harmonizing to the African youth study ( 2009 ) , the African Union ( AU ) adopted a definition of young person that encompasses persons aged 15 – 35 old ages. The figure of young person from 15 old ages to 35 old ages has increased significantly in Cameroon. Harmonizing to the Household Survey carried out ( Enquete camerounaise aupres diethylstilbestrols menages ECAM II ) , this age group accounts for 30.3 per centum of the entire population of 15.5 million people. A big figure – over 36 per centum — of these immature people are difficult hit by poorness. The state of affairs has a terrible consequence on development, peculiarly in the countries of instruction, wellness, and professional preparation. As a consequence of the high rate of unemployment, most young persons leave rural countries for metropoliss and towns in hunt of employment chances which are most frequently non sufficient. Harmonizing to David Smith ( 2003 ) the procedure of mass rural hegira in Africa is largely indulged by young persons. This surging labour force has hence left fewer occupations available for the surging population. In add-on, insufficiencies exist in the current socioeconomic integrating system for young person in Cameroon, which does non hold appropriate and comprehensive mechanisms for advancing self-employment among this population group. Jairo Munive ( 2008 ) explained that most policy shapers in Africa perceive immature people as being economically inactive since the majority of them lack employment in the formal sector, therefore they are frequently labeled by statistical studies as unemployed.

Harmonizing to the Cameroon Growth and Employment Strategy Paper of 2010/2020, “ poorness indexs per type of place held by the family caput aid in demoing that families headed by workers are more destitute ( 41.0 per cent ) than those headed by no workers ( 29.9 per cent ) or appliers ( 11.9 per cent ) . This self-contradictory consequence is more common in the rural countries. In the urban countries, the poorness rate of unemployed and working category families is lower. ”

The study farther provinces that underemployment affects seven of every 10 workers ( 71.7 per centum ) . It is of broader range in the rural countries ( 78.8 per centum ) than in the urban countries ( 57.4 per centum ) . It is therefore the existent job in Cameroon ‘s employment market, with important disparities harmonizing to part of study and gender. Harmonizing to the Minister of Employment and Vocational Training of Cameroon, there are two million unemployed young person in the state based on a survey conducted in 2007, with one million young persons thought to be employed but really underemployed. The tabular array below gives a graphic image of workers by sector:

Division of the employed per sector ( in % )

Beginning: ECAM3, NIS

The decision from the study is that on the whole, 43.1 per cent of workers are hapless. Workers in the informal agricultural sector are more destitute, and about half of them are hapless ( 56.9 per cent ) . It follows that workers of the informal sector are more open to poorness than those of the formal sector. Generally, the income generated in the informal sector does non assist in poorness relief.

2.2 YOUTH ENTREPRENEURSHIP

Schnurr and Newing ( 1997 ) define young person entrepreneurship as “ practical application of enterprising qualities, such as enterprise, invention, creativeness, and risk-taking into the work environment ( either in self-employment or employment in little start-up houses ) , utilizing the appropriate accomplishments necessary for success in that environment and civilization. ”

Schnurr and Newing ( 1997 ) further provinces that the application of these qualities is a procedure known as “ entrepreneurism, ” which leads to ventures in the societal, political or concern domains. This paper emphasizes on self-employment. The OECD ( 2001 ) defines ‘Self-employment ‘ as anyone who works for himself or herself but for anyone else, except under arm’s-length contracts. The OECD definition includes those who work entirely – at place, from a workshop-truck or in separate concerns.

Among others, the study states that the importance of advancing young person entrepreneurship lies in the followers:

The creative activity of employment chances for the freelance and other young persons

The publicity of invention and creativeness in young person

Encourage immature enterprisers to be enterprising by being antiphonal to new economic chances and tendencies

Entrepreneurship helps immature people to get more accomplishments and experiences that can be applied to many other spheres in life.

The publicity of entrepreneurship amongst immature people is now widely accepted since it serves as a major mechanism in the creative activity of youth employment.

Curtain ( 2000 ) and many other experts warn that entrepreneurship should non be considered as a ‘mass ‘ or wide-ranging solution which can bring around all society ‘s societal ailments. However, it has a figure of advantages. An obvious, and possibly important one, is that it creates employment for the immature individual who owns the concern. Besides, youth-run endeavors ( YREs ) besides provide valuable goods and services to society, particularly the local community ( OECD, 2001 ; Stone, et al. ) . This helps in the revival of the local community. It has besides been observed that new little houses tend to raise the grade of competition in the merchandise market, thereby conveying additions to consumers ( Curtain, 2000 ) . In add-on, the endeavors may make linkages between young person enterprisers and other economic factors, such as through sub-contracting, franchising, and so on ( White and Kenyon, 2000 ) .

Furthermore, youth entrepreneurship promotes invention and resiliency as it encourages immature people to happen new solutions, thoughts and ways of making things through experience-based acquisition ( OECD, 2001 ; White and Kenyon, 2000 ) . White and Kenyon ( 2000 ) observes that in certain fortunes, immature enterprisers may be peculiarly antiphonal to new economic chances and tendencies. This is particularly of import given the ongoing globalisation procedure. It is progressively accepted that young person enterprisers can show options to the organisation of work, the transportation of engineering, and a new position to the market ( White and Kenyon, 2000 ) .

In decision, White and Kenyon ( 2000 ) noted that young person endeavors can advance societal and cultural individuality in a community where immature adult females and work forces are encouraged and good connected to the society. They farther indicated that young person endeavors create some value, significance and belonging to immature people, particularly those who are marginalized. This in consequence can project the image of young person and spur others to see them as equal members of the society. In this connexion, the Cameroon authorities has come up with a figure of undertakings to right youth unemployment. The chief aims of these undertakings is to enable young persons get start-up loans which will enable them get down their ain concern across the state. Amongst this undertakings are the Integrated Support Project for Actors in the Informal Sector, known in its Gallic acronym as ( PIAASI ) , National Employment Fund, Rural and Urban Youth Support Program ( PAJER-U ) , Youth Socio-Economic Integrated Project for the Manufacturing of Sporting Materials ( PIFMAS ) . The aforesaid plans can non be evaluated in this paper for deficiency of statistical informations. However, an effectual young person development plan can non be successfully implemented without support fund for the trainees, favourable concern environment and political scheme. In the absence of the aforesaid, young persons are bound to confront some constrains.

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