The G20 Young Entrepreneurs´ Alliance — a strong international voice against youth unemployment

This article was first published in the official B20 Summit 2017 publication “G20 Executive Talks Series”.

What is the result of a combination of low rates of growth, high level of youth unemployment and an increasingly younger population in a country? An increasingly troubling economic outlook! That´s what the G20 members have faced for the past several years and in parts still face today. Therefore, the question that has to be answered is this: what policies can G20 governments adopt to address youth joblessness and disengagement and as a result encourage growth in their countries? Many economies that are rapidly developing face the challenge of finding work for large numbers of young people who will soon enter the workforce. Who can provide an answer to the challenge of youth unemployment?

That is the moment of the G20 Young Entrepreneurs´ Alliance (G20 YEA). The G20 YEA is a global network of 500.000 young entrepreneurs and the organisations that support them. The idea of the Alliance was born at the 2009 G8 Summit in Italy and was initiated after an invitation by the former Canadian Prime Minister Stephen Harper at the G20 YEA Summit 2010 in Toronto. At this Summit, participants determined entrepreneurship as the main force to combat the high levels of youth unemployment and as a result contributed to a communiqué that identified 5 key barriers that discourage young people from starting their own business and therefore enable them to escape the trap of youth joblessness: excessive regulation and taxation, even in a very early stage of a business; inadequate or inefficient coordination of many of the forms of support that are available; social attitudes that discourage risk-taking or stigmatize failure; the need for specific entrepreneurial education in schools and universities and access to funding to support start-ups and early-stage business growth.

Over the years, these five barriers became the pillars of the work of the G20 YEA and are prominently featured in the themes of every annual G20 Young Entrepreneurs´ Summit, always held in the same country as the G20 Summit. These unique events bring together hundreds of young entrepreneurs from the G20 countries, carefully selected by each member organisation.

To move the causes of youth entrepreneurship and the fight against youth joblessness forward, the G20 YEA became on one hand engaged with the G20 and their leaders and governments in a very early stage. Following the invitation in 2010 by the Canadian Prime Minister, in 2012 Mexican President Filipe Calderon met with more than 200 young entrepreneurs in his residence in Los Pintos and in 2017 at the G20 YEA Summit in Germany the guests at the Summit will include the Federal Minister for Economic Affairs and Energy, Mrs. Brigitte Zypries.

On the other hand, the relationship with the B20 (Business 20) was especially fruitful. The G20 YEA´s 2013 Moscow Summit was the first substantial engagement of the G20 YEA in the B20 and resulted in the inclusion of language on youth entrepreneurship in the subsequent G20´s Saint Petersburg communiqué. The G20 YEA´s 2014 Sidney Summit created a global action plan for young entrepreneurs and the G20 YEA´s 2015 Istanbul Summit yielded a commitment in the G20 communiqué at Antalya that year to “support the better integration of our young people into the labour market including through the promotion of entrepreneurship”. Finally in 2016 members of the G20 YEA began to work in the B20 Task Forces, encouraged by the Chair of B20 China, which resulted in 2017 in an open invitation by the Chair of the B20 Germany for the entrepreneurs of the G20 YEA to become even more involved in the B20 Task Forces. In addition, the G20 Young Entrepreneurs´ Alliance was appointed a “networking partner” to the B20.

The story of the G20 YEA continues in 2017, at the G20 YEA Summit in Berlin from 15th to 17th of June, hosted by JCI Germany (Wirtschaftsjunioren Deutschland, www.wjd.de) and their G20 YEA President Germany Carsten Lexa. More than 500 young entrepreneurs from the G20 countries will gather to share with the G20 leaders their ideas on the future of business, on how digitalisation will change the way to do business worldwide and on what can be done, from the perspective of young entrepreneurs, to create growth and employment opportunities, especially in the context of a more and more connected world. Information on the G20 YEA Summit 2017 can be found here: www.g20yea2017.com.

The fight against youth unemployment will not end for the G20 Young Entrepreneurs´ Alliance any time soon, especially in times where the idea of open borders to create worldwide wealth, growth and jobs and the advantages of this idea are questioned. Fortunately, young entrepreneurs have an unending willingness to do, be and learn more, they don´t accept the status quo and they want to change things that they think needs to be changed. And: they are not only crazy enough to think they can change the world — they do!

Carsten Lexa is the President of G20 Young Entrepreneurs´ Alliance Germany and the host of the German G20 YEA 2017 Berlin Summit (link to the Summit website). A corporate lawyer by profession and equipped with his own law firm (link to the law firm website), he advises international clients, who want to do business in Germany, in corporate and commercial legal matters. He is, by invitation of the European Commission, a participant in the annual SME Assembly. He is also a member of the B20 Task Forces and since 2014 a member of the national board of JCI Germany (WJDWirtschaftsjunioren Deutschland), the biggest organization for young leaders and entrepreneurs in Germany.

Interested in more information about Carsten Lexa? Follow him on Twitter (kanzlei_lexa), “like” the Facebook fan page (kanzlei.lexa) or visit the blog (Link).

Share

Related Posts:

Posted in Economy, Entrepreneurial, G-8/G-20, G20 YEA, International | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Is it legal to pay a woman a different salary than a man for equal work?

‘Equal pay for equal work,’ well it ought to be. And the operative word here is ought and it would appear that at least in one court in the United States  it ought not to be.

The 9th U.S. Circuit Court of Appeals rules that it is OK  legal  to pay women a different salary for the same work as a man.  Yes, really!!  The Court overturned a lower-court ruling which had stated that pay differences based exclusively on prior salaries were discriminatory under the US federal Equal Pay Act.

To my mind this is a poor ruling. Long and short: let’s continue discrimination because someone else already started it. Where is the justice? Forget justice, where is the logic?

 

Share

Related Posts:

Posted in Commercial Awareness, Diversity, Human Rights, Labour | Tagged , , , | Leave a comment

Top 10 best reads to understanding Jamaica’s SEZ Regime

Here are the top ten best reads to understanding Jamaica’s Special Economic Zone Regime and the mandate of the Jamaica Special Economic Zone Authority.

Top 10 best reads to understanding Jamaica's SEZ Regime

 

Share

Related Posts:

Posted in Commercial Awareness, Government Policy, Jamaica's Global Logistics Hub, Special Economic Zone | Tagged , , , | Leave a comment

How G20 nations can help young entrepreneurs with their businesses

Looking at the latest media coverage, one comes to the conclusion that it is “en vogue” to be an entrepreneur as a young person. In fact, digitization offers young people as many opportunities as ever to start a business and to do business, even across borders. Governments and organizations are also happy to make contact with young entrepreneurs and meet with them in order to appear as “hip” as possible. In reality, however, entrepreneurs, and young entrepreneurs in particular, often face great challenges. After all, economic and entrepreneurial activitie are often conducted any more only on a global level, that means across borders, and the same applies to competition: young entrepreneurs are increasingly focusing their business and its growth on the opportunities that arise not only in their own country — “go global” is today’s claim! However, this creates new obstacles which cannot be eliminated by one state alone.

The voice of this new generation of young entrepreneurs has been since 2010 the G20 Young Entrepreneurs’ Alliance (G20 YEA), whose members are the most important young entrepreneur organisations in the G20 countries. Once a year, their representatives meet in order to discuss problems, obstacles and success factors — also from their own experience — and to develop demands that are presented to the governments of the G20 countries as to how international young entrepreneurship can be better supported.

But what are the central demands of the G20 YEA to the governments of the G20 countries to support young entrepreneurs?

Enable Early education in entrepreneurial skills

Support for young entrepreneurs should be launched at an early stage. The necessary skills such as digital competence, quality of management, handling of financial resources or communication should already have a prominent place in education, and should in particular focus on school and university education. This is why the G20 YEA calls for both academic and secondary (university) education to be expanded by means of focus on the skills required for entrepreneurs. And through support by means of a “learning by doing” system, for example by means of practical entrepreneurial activities such as school or university start-ups or at least business games, the students could already work on and try out their future (theoretical or practical) company during their education and training.

Provide financial support

Of course, financial resources are required. For this reason, another priority of the G20 YEA is to enhance the financial support for partnerships between university incubators and accelerators and the private sector. In this way, university resources can be used by and, at the same time, innovations from university development can be introduced to existing companies.

Allow making connections and provide information

After the foundation, one of the most important phases for a company is the expansion and the scaling. In this phase, a platform for establishing contacts, fostering cultural exchange and creating opportunities for cooperations would be very helpful in order to access customers and employees worldwide. To capture the most important economic regions in the world, it makes sense if such a platform is provided and supported by the G20 countries and the relevant information and contacts (for example on the prerequisites for company foundations, on taxation, on important regulations or on the use of employees) is made available here.

Provide digital infrastructure

Since young entrepreneurs are constantly online and many business models require mobile accessibility, a functioning digital infrastructure is essential. This must be available without interference by means of high-speed Internet lines and at the same time it must be cost-effective. The G20 YEA therefore calls on the G20 countries to develop a 5G network in all G20 countries by 2022 to enable an uninterrupted participation in global digital networking.

Create a visa program for entrepreneurs

As described above, it is particularly important for young entrepreneurs to be in contact with customers, investors and potential employees worldwide. For this reason, strengthening the access and the presence for young entrepreneurs in their identified target markets is a particular concern of the G20 YEA. It therefore calls for a special visa program for entrepreneurs in the G20 countries, which allows a (young) entrepreneur not to enter a G20 country with as little difficulties as possible, but also lets him set up and develop its company there.

Reduce bureaucracy

In this context, the sometimes lengthy prerequisites for setting up a company or its continuation in some countries pose challenges for young entrepreneurs. The G20 YEA therefore calls for the implementation of structural and legal reforms with the aim of simplifying entrepreneurship through simplified bureaucracy and concomitant cost reductions. Overriding bureaucracy is the greatest obstacle to cross-border activities. The G20 YEA therefore specifically calls on the governments of the G20 countries to set themselves the goal of enabling the citizens of a G20 country to establish and register a company in another G20 country within 5 days, and if possible without the help of consultants or special professions.

Provide tax incentives

And since the creation of a company is often associated with the creation of new jobs, tax incentives should be created for young entrepreneurs, not only to start a business and generate profits, but also to create jobs as quickly as possible.

Strengthen the protection of intellectual property

Last but not least, it should not be forgotten that there are still different legal configurations in the individual G20 countries with regards to the protection of intellectual property. Often, however, the potential of a company lies in its initial idea, so that the protection of intellectual property is of particular importance. Here, the G20 YEA calls for the closure of existing gaps in the individual G20 countries with regards to IP protection in order to ensure a G20-wide uniform protection level.

Young entrepreneurship is global!

Young entrepreneurs are innovative, have the willingness to take calculated risks and will not stop the implementation of their business ideas because of national borders. They also create jobs that are urgently required because they use the opportunities of a globally connected world. However, they are faced with a variety of obstacles to their entrepreneurial ambitions, often resulting from “thinking in national borders”. However, what is needed is a viewpoint that goes away from “it is enough for our country” to a “how could we do better to respond to global competition”. The G20 YEA is ready to tackle the issue of how cross-border entrepreneurship can be strengthened and propose solutions to the G20 governments and leaders.

 

Carsten Lexa is the President of G20 Young Entrepreneurs´ Alliance Germany and the host of the German G20 YEA 2017 Berlin Summit (link to the Summit website). A corporate lawyer by profession and equipped with his own law firm (link to the law firm website), he advises international clients, who want to do business in Germany, in corporate and commercial legal matters. He is, by invitation of the European Commission, a participant in the annual SME Assembly. He is also a member of the B20 Task Forces and since 2014 a member of the national board of JCI Germany (WJD — Wirtschaftsjunioren Deutschland), the biggest organization for young leaders and entrepreneurs in Germany.

Interested in more information? Follow on Twitter (kanzlei_lexa), “like” the Facebook fan page (kanzlei.lexa) or visit the blog (Link).

Share

Related Posts:

  • No Related Posts
Posted in Economy, Entrepreneurial, G-8/G-20, Government Policy, International, Trade | Leave a comment

The law and autonomous vehicles: top six articles from the World Economic Forum

Diverless cars have already hit the roads but what happens if one of them hits you? In other words what is the legal framework that governs this and other expressions of the so called Fourth Industrial Revolution? For answers to these and other intriguing questions, here are my top six best articles on the subject from the World Economic Forum. Click Articles.

Share

Related Posts:

  • No Related Posts
Posted in Commercial Awareness, Ethics, Legal Reform, Transportation | Tagged | Leave a comment

The law as a economic development tool: a personal insight

I call on my fellow lawyers around the world to join me in having an expanded view of their role in society.

 

Thanks World Economic Forum and Andrew Ozanian.

Share

Related Posts:

Posted in Commercial Awareness, Human Rights, Sustainable Development | Tagged , , | Leave a comment

China’s Special Economic Zone experience… seven things Jamaica has learnt

“If we are to seize opportunities to promote China’s all-round development, it is critical to expand the economy.” – Deng Xiaoping

China’s economic development over the past 35 years is nothing short of remarkable. Its journey to becoming ‘the factory of the world’ holds several important lessons in industrial development, attracting foreign direct investment and economic diversification. Although China’s journey is a complex one filled with a variety of policy prescriptions, one policy tool stands above the rest – special economic zones. The strategic and focused use of special economic zones (SEZs) as a development tool holds a special – pun intended – place in China’s story. And as Jamaica embarks on its own journey using its modernized SEZ framework, China’s journey holds valuable insights into the remarkable transformational power of SEZs.

What makes special economic zones special?

There are various definitions of SEZs, however, in the simplest of terms they are “geographically designated trade areas that are used to attract foreign investors and boost industrialisation. They generally have trade laws that differ from the rest of the country and companies are offered tax incentives to set up operations.” (What can Africa learn from China’s special economic zones? By Yejoo Kim, World Economic Forum).

SEZs come in a variety of forms, names and functions – Free Trade Zones, Free Zones, Export Processing Zones, Enterprise Zones, etc. – that reflect a government’s priorities and positioning of its economy. However, what unifies them all is that they are development tools used by governments to attract, and facilitate investments that act as catalysts to diversify whole or targeted segments of their economies.

A journey of a thousand miles begins with a single step

For China its SEZ journey began in the late 1970s/early 1980s as part of Deng Xiaoping’s economic reform and opening up of China to the world. The first SEZs were set up along China’s southern coastal areas in 1980, and most famously in Shenzhen. SEZ became China’s windows to the world. The SEZs, especially Shenzhen were an immediate success attracting by 1981 over half of China’s total foreign direct investment (FDI). The success story of China’s SEZ continues today and will for the foreseeable future.

Jamaica has set itself an ambitious goal and programme through its national development plan to “make Jamaica the place of choice to live, work, raise families and do business.”  A critical element of Vision 2030 is transforming Jamaica into a global logistics hub which includes bringing together Jamaica’s geographic and other advantages with land, sea, air and technological infrastructure to support Jamaica’s modern industrial development. The ultimate aim of the global logistics hub is to increase the length, width and depth of Jamaica’s participation in global supply and value chains.

This increased participation or value addition may come in a variety of forms that would see Jamaica and her people expanding their skills and expertise in research and development, design, production, logistics, marketing or services, etc. in a range of industries.  For Jamaica, much like China, special economic zones, are a ‘special’ vehicle to increase its participation in the global economy.

The seven things

It is certainly true that Jamaica can learn many important lessons from China and other countries in the use of SEZs as a tool for economic development, however, to my mind here are seven of the most important:

  1. Special Economic Zones are not a panacea: SEZs while important are not an economic magic bullet and are not a cure all for a country’s entire economic woes. They do not stand by themselves but form part of a larger economic reform programme, for China that was Deng Xiaoping’s opening up of China to the world and for Jamaica it is Vision 2030 and the global logistics hub.
  2. On and off-site infrastructure integration: One of the most criterial factors that contribute to the success or failure of zones is availability and integration of adequate and appropriate infrastructure inside and outside of a zone. This infrastructure – land, sea, air or technology – must not only be fit for purpose but must be networked together to create value for stakeholders (workers, government, investors, etc.).  Much like China, Jamaica, albeit on a smaller scale, has been developing and integrating its multimodal logistics infrastructure.
  3. ‘Soft’ infrastructure is as important as physical infrastructure: Having the right business environment is critical to attracting investors. The laws that the zones operate under, just like the physical infrastructure, have to be adequate and appropriate – fit for purpose. This is much more than just cutting red-tape but it’s about bureaucracies being facilitators and delivering government services as value additions. Investors must have confidence that it is easy to invest, their investment is safe and the operations of their investment will not be compromised by excessive red-tape.  This, in part, is the very reason China and now Jamaica created the zones.
  4. Incubation for larger economic reforms: Reforming an economy is no easy task and one that cannot be done overnight no matter the size of the economy (Jamaica vs. China). However, SEZs offer policy makers an opportunity to experiment with a variety of reforms with limited risk to the wider economy. SEZs, in this regard act as incubators to test and refine reforms before rolling them out to the wider economy. The incubation of reforms gives policy makers policy room to create strong test cases done under as-close-to local conditions that increase the opportunity for success when rolled out in the wider economy.
  5. Efficient and effective administration: The efficient and effective administration of the SEZ regulatory environment is a self-evident, yet often understated success factor for SEZs. This goes beyond attracting and facilitating investments, as important as that is, into due diligence, long term assessment, planning and on-going monitoring of investors and their investments to ensure that they align to the country’s goals and policy priorities. In its Special Economic Zone Authority, Jamaica much like China has created a mechanism to do just that.
  6. Linkages: The phrase a rising tide lifts all boats defiantly describes the economic benefits of China’s SEZ development, however, this rising tide was not incidental and was planned for. One of the great development effects of SEZs are their spill-over effects into the rest of the economy. However, for these impacts to be meaningful and sustainable forward and backward linkages have to be forged by deliberate policy direction and actions. Jamaica’s SEZ policy and law recognize this fact and have created several mechanisms, particularly aimed at small businesses, to accomplish this.
  7. Developing a skilled labour pool: China realized early that it was not enough to have a cheap labour force but it had to have an educated one as well. What is more, China also recognized that in developing in its skilled labour pool, it was important that it match its skills training with the needs of current and future industries. In fact, over time China’s skills training development became an integral part of its investor targeting, innovation and over-all economic growth strategies. For Jamaica education and training are critical components of Vision 2030 and the global logistics hub.
Share

Related Posts:

Posted in Commercial Awareness, Jamaica's Global Logistics Hub, Special Economic Zone | Tagged , , , , | Leave a comment

Placing the Hanjin bankruptcy in a global shipping industry context

To understood the Hanjin bankruptcy is to understand the current state of the global shipping industry. And if Hanjin is any thing to go by, and it is, the picture isn’t good. However, it is not all doom and gloom as the shipping industry is in the process of reorganizing itself and of this Hanjin saga is simply a part.

Share

Related Posts:

Posted in Bankruptcy/Insolvency/Restructuring, Shipping | Tagged , , | Leave a comment

A lifeline for Hanjin or a delay of the inevitable?

Share

Related Posts:

Posted in Bankruptcy/Insolvency/Restructuring, Shipping | Tagged , , , | Leave a comment

A business component roadmap to Jamaica’s logistics centered economy

How is the Hub being implemented? What are the timelines? What is the economic value proposition? How is Jamaica positioned relative to other major hubs? What’s the difference between a transshipment hub and a logistics hub? What is the role of emerging markets such as China? What type of industries will be attracted to the hub? What strategy will be used to attract the leading global companies in the field of logistics? How will the hub be financed? What are the opportunities for local businesses? Answers to these and other questions will lead to a better understanding of the transformational nature of the initiative.

The document below is a bit dated however it still provides a comprehensive overview of Jamaica’s global logistics hub thrust.

lhi-business-component-roadmap
Share

Related Posts:

Posted in Commercial Awareness, Government Policy, Investment, Jamaica's Global Logistics Hub, Logistics, Trade | Tagged , , , , | Leave a comment