Entrepreneuriat des jeunes : tremplin pour le développement

Transcription

© ADA/Guy Wolff
Entrepreneuriat des jeunes :
tremplin pour le développement au Sud ?
20ème Midi de la microfinance | 2 février 2012 | Luxembourg
Avec Susana Pinilla, Présidente des institutions de microfinance Proempresa et Idesi Nacional
Dossier ThéMaTique
Une conférence organisée par
En collaboration avec
Avec le soutien de
iNTroDuCTioN ............................................................................................................................................................................... p 05
entrepreneuriat des jeunes : tremplin pour le développement au sud ? .................................................................................................................................. p 05
DoCuMeNTs CLés ................................................................................................................................................................ p 07 - 58
Making Cents international (2011): state of the Field in Youth enterprise,
employment and Livelihoods Development (executive summary, introduction)
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07
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19
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27
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49
Making Cents international (2010) : etat du secteur de l’inclusion financière des jeunes
The seeP Network (2011): Building sustainable Business Models for Youth Financial services
international Labour organization (2011): Global employment Trends for Youth: 2011 update
PréseNTaTioN
aNNeXes
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59
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61
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Bibliographie et ressources thématiques supplémentaires
Biographie : Susana Pinilla
Partenaires
ADA, partenaire de choix pour vos projets en microfinance .................................................................................................................................................................. p 63
iNTroDuCTioN eNTrePreNeuriaT Des jeuNes : TreMPLiN Pour Le DéveLoPPeMeNT au suD ?
87% des 15-24 ans, soit plus d’1,2 milliards de jeunes, vivent dans les pays en
développement. Cette frange de la population peut être un véritable poids
démographique en termes de santé, d’éducation, de mobilité, de formation et
d’emploi, mais n’a-t-elle pas aussi le pouvoir de devenir un véritable moteur pour
ces sociétés ? Des millions de jeunes possèdent la motivation et les capacités
nécessaires pour mener une activité professionnelle, sans pour autant parvenir à
trouver un emploi. Dans quelle mesure la microfinance peut-elle contribuer à leur
intégration professionnelle ? quel rôle ces jeunes peuvent-ils endosser dans la lutte
contre la pauvreté ?
Dans le cadre du 20ème Midi de la microfinance, aDa a sélectionné une série
d’articles qui constituent une documentation de base essentielle pour comprendre les
enjeux liés à l’insertion professionnelle des jeunes dans les pays en développement.
© ADA/Guy Wolff
20ème Midi de la microfinance p 5
DoCuMeNT CLé sTaTe oF The FieLD iN YouTh eNTerPrise, eMPLoYMeNT aND LiveLihooDs DeveLoPMeNT
State of the field in Youth
enterpriSe, emploYment and
livelihoodS development
A Guide for Programming, Policymaking,
and Partnership Building
Also includes information on:
• 316 recently released articles,
books, case studies, handbooks,
interviews, publications, reports,
technical briefs, toolkits, and portals.
• 27 learning events related to
youth enterprise, employment
and livelihoods development
that take place in 2011.
In partnership with:
THE WORLD BANK
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
State of the Field in Youth Enterprise, Employment, and Livelihoods Development
Executive Summary
Executive Summary
All over the world, every day, young men and women open a bank account, launch a business, receive their
first paycheck, save for their education, contribute to their families, and find safe and rewarding ways to
achieve their economic goals. Those seemingly small successes can have lasting impacts on young peoples’
lives. Economic opportunities help many young people avoid risky behavior, adopt new technologies, find
solutions to social problems, and engage with others. Those successes can reverberate through families,
communities and local economies.Young people can inject new talent into the work and marketplace. They
can shake-up the status quo, questioning harmful social practices. But they need adults, as well as institutions,
to give them access to services, eliminate barriers, and guide them on their way. And the world’s more than
1.8 billion young people1 deserve many more successes.
The youth enterprise, employment and livelihoods development (YEELD) field has been growing
and evolving to respond effectively to two critical issues: the youth population surge and global youth
unemployment crisis. With the largest youth population in the history of the world, developing economies
struggle to provide economic opportunities, as well as health and education services, for such a large
demographic. The need for a youth focus is especially acute in fragile states, conflict-affected areas, and
countries where the majority of the population is under age 30, but it exists to varying degrees throughout
the world.
The recent global economic crisis has exacerbated challenges related to youth unemployment, impacting
both developed and underdeveloped economies at unprecedented levels. During the economic crisis, youth
unemployment experienced the sharpest increase ever, rising from 11.9 percent in 2007 to 13 percent at the
end of 2009 for a total of 81 million unemployed young people.2 For those young people, formal employment
and the social protection it affords remains out of reach; they dedicate themselves to the informal market,
work for their families, and subsist on whatever opportunities arise. By channeling youth energy and
innovation towards safe and viable economic opportunities, both in the formal and informal sector, young
people can contribute to vibrant economies, peaceful societies, and healthier and better educated people.
Making Cents International’s 2010 Global Youth Enterprise & Livelihoods Development Conference convened
more than 400 stakeholders from 63 countries to share key findings and lessons learned, discuss common
challenges, and reflect on next steps needed for the maturation of the YEELD field. This publication provides
a snapshot of how 400 conference participants from 63 countries—those who design, implement, monitor,
evaluate, and fund programs and policies in this field—work to create impact, influence policy, and achieve
scale and sustainability. As the field advances and more people dedicate time, resources and energy to YEELD,
it is important to take stock and chart the way forward. At the 2010 conference,YEELD stakeholders
highlighted the following overall advances and recommendations for the field:
•
Focus on policy change. Governments need assistance to effectively support youth livelihoods.
Policies should build on lessons learned in programs or pilots, bridge the gap between education
1 The Inter-Agency Network for Youth Development estimates that there are approximately 1.8 billion young people ages 10-24 years in the world
today. The United Nations Population Division estimated that the global youth population (ages 15-24 years) in March 2009 was 1.1 billion youth
Approximately 90 percent of young people ages 15-24 live in the developing world. www.un.org/esa/population/publications/wpp2008/
pressrelease.pdf. Note that global youth statistics can vary depending on the age range considered.Young people are considered to be inclusive of
children in their early adolescence.
2 International Labour Office. “Global Employment Trends for Youth: Special issue on the impact of the global economic crisis on youth.” Geneva:
August 2010. http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_elm/---trends/documents/publication/wcms_143349.pdf.Youth
unemployment rates track young people ages 15-24, when young people in many countries are legally allowed to engage in formal employment.
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Table of Cont
Annexes
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
•
•
•
•
•
While important advances have been made in the field, stakeholders remain dedicated to its continued
maturation. Details about how to fund, design, implement, evaluate, and improve YEELD programs,
especially in certain contexts and with specific populations, need to be refined. Many of those gaps are
highlighted as next steps in the chapters of this publication. The five tracks for learning at the 2010 conference
included: youth enterprise development; workforce development; youth-inclusive financial services and
financial capabilities; adolescent girls and young women; and monitoring, evaluation and impact assessment.
Overlap exists between the tracks. For example, the success of youth enterprise development programs is
often dependent on young people’s access to financial services. Workforce development programs may include
entrepreneurial components and vice versa. Monitoring, evaluation and impact assessment, as well as gender
considerations, are common to all tracks. Key findings from each of the tracks are summarized below.
9
Executive Summary
•
systems and the market, institutionalize support for young people, and remove antiquated policy
barriers that prevent young people from accessing the services and education opportunities they
need.
Build a more nuanced knowledge base of “what works.” The knowledge base is starting
to grow and expand; deepening and disseminating this knowledge is a critical next step. Examining
“what works” and for whom, as well as what doesn’t work, strengthens learning and contributes to
more intentional programs.
Mobilize donors. The number, type, and sophistication of donors funding the field indicate a
growing understanding of the impact programs can have on youth, economies, and nations. Donors
realize that youth as a demographic are critical to reaching socio-economic development objectives.
Investment horizons of three to ten years allow for depth, impact and significant contributions to
the evidence base.
Listen to and engage young people. Practitioners and policymakers have increased access
to the tools, expertise, and guidance necessary to engage young people in program design,
implementation, monitoring, and evaluation. The field still has to create stronger policy and
institutional environments that give voice to young people and inspire authentic engagement with
them.
Work with young people as partners. Understanding young people’s vulnerability is critical.
Equally critical is acknowledging their potential to transform their own lives and communities; and
also ensuring that youth development professionals, educational leaders, policy-makers, families,
and community members do as well.
Promote cross-sectoral approaches. Holistic programs reflect the way young people live their
lives; address the interconnected nature of economic opportunities and HIV/AIDS, reproductive
health, and education; and can strengthen outcomes across those various domains. Avoiding “silos”
of development, and convincing all partners to invest in and work with youth, remains a challenge.
Create networks to advocate and promote the field. National, regional, and global
networks connect young people and stakeholders via technology or other types of exchanges.
They publicize successes in the field, communicate its importance to policy-makers, and share
new approaches and research. This is an important start but more needs to be done to organize
concerted advocacy efforts.
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
Executive Summary
Youth Enterprise Development (YED)
Youth enterprise development programs encourage and support the entrepreneurial behaviors that young
people need to devise innovative solutions to social or business problems, create and sustain small businesses,
and succeed in employment.Young entrepreneurs now benefit from national networks, experienced mentors,
resource-filled websites, online communities, supportive organizations, market-driven capacity building,
unique partnerships, and more youth-friendly financial services. Participants in the 2010 conference reflected
on how to mobilize policy-makers, link to mentors in the private sector, and encourage schools to promote
entrepreneurial behaviors, creativity, and positive risk-taking. Tailoring approaches to support diverse types of
entrepreneurs, from small-scale to high growth entrepreneurs, was also discussed.
Workforce Development (WFD)
Workforce development programs strive to provide relevant and accessible training, education, and
development opportunities so that young people can secure meaningful employment in rapidly changing
economies. This new sector continues to address key issues critical to its evolution: balancing public and
private sector investment, addressing the supply and demand sides of WFD, ensuring that marginalized
young people access services, and strengthening educational institutions to create sustainable workforce
development solutions. Innovative experiences partnering with high-growth sectors, involving youth and
families, and designing dual-client approaches that address both youth and employers’ needs are a few of the
experiences highlighted here.
Youth-Inclusive Financial Services and Financial Capabilities (YFS and YFC)
Young people depend on access to youth-friendly financial services to secure their livelihoods, manage and
control their assets, and make wise financial decisions for their future. Participants in the 2010 conference
discussed how to identify the youth sub-segments of existing markets, develop new youth-friendly products
— using both formal and informal models — by using market research to adapt existing products, and
utilize innovative delivery approaches and channels — including the use of technology — to reach youth.
Partnerships between financial institutions and youth-serving organizations can lead to more holistic
programming and offer unique opportunities for quality, sustainability, and scale. Microfinance institutions
offering youth products as part of their competitive strategies are now convincing peers of the business case
for investing in youth; powerful arguments that will undoubtedly lead to the continued advancement of the
sector.
Adolescent Girls and Young Women (AGYW)
Important investments in YEELD programming for adolescent girls and young women have contributed
to more sophisticated and intentional programming for this population. Exciting programs embrace the
empowerment side of the economic equation, counteracting unacceptable situations of vulnerability endured
by millions of girls and young women. Participants discussed how to refine program delivery models, design
girl-friendly and girl-designed financial products, integrate girls into value chains, and expand pre-existing
livelihoods programs to include girls.
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Table of Cont
Annexes
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
Monitoring, Evaluation and Impact Assessment (M&E)
What’s next?
Several ways forward emerged from presentations, conversations, panels, and participants at the 2010
conference. They include the following:
• Develop more targeted, intentional programming for specific youth populations.
Theories of change should reflect a nuanced understanding of population sub-sectors and how
YEELD programming will add value to young peoples’ lives and contribute to the social and
economic progress of their communities. Stakeholders, whether deciding to invest in girls, early
adolescents, street children, or high-growth entrepreneurs, should map a path for change based a
clear understanding of the young people’s life cycle and the individuals and institutions that make up
a young person’s environment.
• Determine which models and approaches merit being taken to scale and advocate for
them. The development of the YEELD evidence base still lags behind the pace of implementation.
Despite advances, the field still needs a more detailed understanding of which models and
approaches are most effective for a particular context, population, or problem and why and when
they are most effective. That knowledge should then inform advocacy, national-level policy change,
and additional investment. Research is also needed to prove more explicitly the connection between
YEELD programs and poverty alleviation, demonstrating which youth interventions impact local
and national economies.
• Use partnerships to fill current gaps and broaden the reach of the YEELD field.
Partnerships offer the potential for scale and allow specialized organizations to complement each
other’s expertise, resources, and geographical focus. Given the time and resources necessary to
develop effective partnerships,YEELD stakeholders should strategically partner with organizations
to fill existing knowledge or coverage gaps and advance the field. Communicating with partners
about practical, field-level issues should be prioritized as the best-designed programs can be undone
by operational challenges during implementation.
• Maximize the use of media and technology in YEELD programs.Technology and media
offer intriguing opportunities to reach scale, expand services, lower operating costs,democratize
participation, and keep programming relevant to a dynamic world. Questions about access to
technology and media—who gets left behind—need to be addressed, as do questions about the
quality and purpose of content for both “new” types of social media and “old” television, radio, and
print media. Both media and technology continue to offer entrepreneurial opportunities for young
people as early adopters of technology.
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Executive Summary
Practitioners, donors, policy-makers and other stakeholders acknowledge that while employment or financial
statistics tell an important story, the building blocks of young people’s success may be more subtle and need
to be measured at the individual level. The sector advances in finding viable ways to measure the outcomes
and impacts of interventions designed specifically to increase and improve a young person’s employability, life,
financial, and entrepreneurial skills and access to finance, mentors, and other resources. More sophisticated
and standardized M&E tools, meta-analyses of evaluations, reflections on operational and capacity-related
challenges for M&E, and careful considerations of gender-responsive M&E characterized the dialogue on this
track at the conference.
Annexes
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
Voices: Why Should We Be Talking About Youth?
“The average age in Latin America and the Caribbean is
26 years old; there are a billion youth in the region. Many
of the countries in the region are nearing incomes of the
developed world. That tells us about the opportunities we
have today. There is a direct link between development
and youth development. The region has the highest
cellular phone penetration in the world. What will we do
with that technology?”
—Mr . Luis Alberto Moreno, President, Inter-American
Development Bank (IDB). In addition to speaking
about the importance of technology, Mr. Moreno
discussed the importance of scaling-up initiatives
through partnerships and collaboration, and seeing
and promoting youth as agents of change for their
communities.
“We, the old people (and I don’t like to say this), are
comfortable consuming. But we need more making.
Young people are well-positioned to re-invent economies.
Young people are capable of initiatives, if those are
enabled. My vision is that out of extreme conditions [like
slums] emerge new ideas on how to construct. In the
global slum and city, people are motivated to initiate
rather than just consume.”
—Dr . Saskia Sassen, Robert S. Lynd Professor
of Sociology and Member, The Committee on
Global Thought, Colombia University. Dr. Sassen
emphasized the importance of nurturing talent and
production in the poorer sectors as the “middle class
will take care of itself” and our economies need to
better distributed.
For more information about her research, see
www.saskiasassen.com.
“We have studied changemakers and learned from social
entrepreneurs. We found that they start early. Changes
they brought about as young people inspired a lifelong
mission. An adult mentor encouraged them to pursue
ideas. They work in teams. They are empathetic and
understand other people’s situations.”
For more information about youth and the IDB, see
www.iadb.org/idbyouth.
“Young people are the single most untapped resource for
economic growth and better governance. With the right
investments in young people, we have the opportunity to
change the planet. We need to start by listening to young
people and creating the supportive environments that
enable us to do so.”
—Ms . Reeta Roy, President and CEO, The MasterCard
Foundation. Ms. Roy discussed how to empower
young people to create their own pathways, and
how we need to broaden the formal education
system and teach marketable skills for a 21st
Century economy.
—Ms . Diana Wells, President, Ashoka. In addition to
discussing characteristics of social entrepreneurs,
Ms. Wells discussed the importance of participation,
asserting that more people need to have a role and
realize that they are part of the “conversation.” She
and other panelists agreed that “shining a light” on
stories about changemakers can promote positive
ideas about youth and encourage engagement.
For more information about Ashoka,
see www.ashoka.org.
For more information about The MasterCard
Foundation, see www.themastercardfoundation.org.
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Executive Summary
The following visionaries and thought leaders
reflected on the critical role that young people can
play in global development. They offer their opinions
on why we need to create economic opportunities for
young people and how we can best support youth to
bring about positive change.
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
INTRODUCTION
Introduction
A . Why Youth Enterprise, Employment, and Livelihoods Development?
Young men in Jamaican slums enter the value chain of the US$6 billion ornamental fish industry. Andean
artisans contribute traditional designs to the world of high fashion. Blind Colombian children benefit from
the ingenuity of local engineering students. Central American coffee farmers connect to fair-trade retailers.
Brazilian teenagers transfer skills learned on the soccer field to the workplace. High school students analyze
the ethical consequences of their role in the marketplace. And like many of the young entrepreneurs behind
these success stories, practitioners in the youth enterprise, employment, and livelihoods development
(YEELD) field catalyze and support the creative, social and entrepreneurial potential of young people for a
greater social and economic good.YEELD programs may:
• Protect youth from trafficking, sexual exploitation, unsafe labor, risky behaviors or recruitment into
criminal or armed groups that destabilize countries and threaten global security.
• Empower young people, especially girls or other marginalized populations, by promoting their safe
participation in local economies and in their communities.
• Support educational systems to improve quality and relevance, teach entrepreneurial behaviors, and
assist young people to translate ideas for income-generation into the local marketplace.
• Prepare young people for formal employment in traditional and growth economies in their local
contexts through public and private partnerships that bridge the “learning and earning” divide.
• Provide access to age-appropriate financial services to give young people control over their assets
and the guidance they need to make informed financial and life decisions.
YEELD programs make sense for economies, societies and nations: economies depend on the continual flow
of talent and new ideas into the workforce and marketplace, societies depend on empathetic individuals
to devise solutions to vexing social problems; and nations benefit from a young, productive, and engaged
citizenry that contributes to socio-economic growth, builds the private sector, and develops civil society.
The YEELD field must continually advance by building on past experiences, documenting lessons learned,
assessing impact, filling knowledge gaps, and developing richer and more sophisticated evidence-based
approaches that have been proven effective. The 2010 Global Youth Enterprise & Livelihoods Development
Conference convened more than 400 practitioners, educators, funders, policy-makers, researchers, and youth
entrepreneurs from 63 countries to focus on that task. The conference provided a learning platform to reflect
on the field’s advances and chart a shared course for the next 10 to 20 years. Participants learned about new
tools, debated promising practices, shared successes and failures, networked with colleagues, and engaged
with visionaries. The 20103 conference responded to the same impulse that drove the organization of the first
event in 2007.4 a need to better understand how to increase and improve economic opportunities effectively
for young people around the world.
The 2010 conference, in its fourth year, continued to tackle issues of global relevance. Statistics paint a bleak
picture for adolescents and youth. Nine out of ten of the world’s young people live in developing countries.3
Over 81 million young people were unemployed in 2009, 7.8 million people more than in 2007.4 Formal
employment, and the social services that frequently accompany it, remain out of reach for millions; young
3 http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_elm/---trends/documents/publication/wcms_143349.pdf, page. 1
4 Ibid, page. 1
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Table of Cont
Annexes
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
people must seek the economic opportunities they need to continue education, stay healthy, build their future,
and support their families. Since young people are key to developing strong families, open societies, fair
governments and vibrant local and national economies, the situation calls for a comprehensive response. With
access to appropriate educational and financial services, guidance and social support, and facilitating policy
environments, the “youth problem” becomes an opportunity.
B . What Are The Key Ingredients Of Youth Enterprise And Livelihoods
Development Programs?
Participants in the 2010 conference deliberated over key ingredients that are necessary to include in
programming and policymaking in order for young people to obtain a decent job or start a successful
business. The following are key ingredients that participants agreed lead to high-impact YEELD initiatives:
•
•
•
17
Introduction
•
Connection with classrooms. Connecting with school systems or other formal learning
institutions provides YEELD programs opportunities to bridge the learning and earning divide,
impact large numbers of young people, and influence national policy through curriculum change.
Some YEELD programs, such as workforce development with in-school youth or financial education
for children, may be based entirely in schools. Other programs may focus on out-of-school young
people or employ a hybrid approach, focusing on non-formal education but connecting with
traditional classrooms when necessary.
Access to financial products, services and education. Financial products, services, and
education are the basic building blocks of the YEELD field. Without access to financial products and
services, young people often cannot save income, receive credit to start small businesses, or control
their assets. Financial education can complement life skills, entrepreneurial education and other
learning components offered in YEELD programs. Services may be offered by commercial banks,
informal savings and loan arrangements, schools, or through family members. Mentors or peer
leaders also serve to guide young people as they develop entrepreneurial, financial, and life skills.
Private sector partnerships. YEELD programs are intimately connected to local economies. In
most cases, young people are already actors in their local marketplaces, though their contributions
may not be recognized. Private sector partnerships allow YEELD programs to tap into available
resources, uch as mentors, meeting space, and products that can serve as in-kind donations. They
can also help ensure YEELD programs are market-led. In many cases, private sector partnerships
benefit both the private sector company and the individual client(s) since young people or their
families may become new clients for businesses or banks. Financial services, value chain approaches,
micro-franchising, internships, and mentoring all involve private sector partnerships.
Enabling environments for systemic change. YEELD pilots or small-scale programs serve to
test delivery mechanisms, refine financial services or products, target marginalized young people,
and improve the lives of a select group of young people. Nevertheless, program impact will be
limited to a geographic area or a target group unless programs also take a macro-level approach
to policy change. That policy change will be context-dependent; it might mean allowing minors
to open bank accounts, integrating entrepreneurial education into the formal school system, or
requiring both public and private financing for workforce development. Whatever the change, a
focus on the enabling environment will allow for impact beyond a limited geographic area or target
group.
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
C . How Can We Engage Young People As Participants And Partners In
Development?
Introduction
Youth engagement and participation emerged as a key ingredient that cross-cut all conference tracks.
Successful YEELD and youth development programs engage young people as active participants in their
own development and partners in the development of their communities. Engaging youth begins with the
belief that young people are capable of developing successful economic and social initiatives when given the
appropriate support. Listening to young people is also an important step in design, implementation, and
evaluation phases of programming and policymaking.Young people can share which YEELD program and
policy components would be most effective to them in securing employment, starting a business, and utilizing
financial services.
Resources exist within the YEELD field to assist stakeholders to guarantee authentic engagement and
participation by young people. Many resources are documented throughout the publication though the
following ones deserve a special highlight:
• Web-based networks and social media for youth and youth-serving organizations
connect young people to organizations and opportunities that exist close to home and on the global
stage. They allow young people to drive the conversation and provide support and resources when
necessary.
• Media outlets can promote positive images of young people, communicating to youth and
the general public the impact that young people can have on their communities. They may use
celebrities or other traditional media channels to access young people who are not participating in
youth development or YEELD programs.
• Youth representatives tell their stories, highlighting their path to success and explaining
which types of support helped them achieve their goals. Testimonies from young people can help
YEELD practitioners understand what young people need to succeed and what facilitates youth
participation. The following section describes the experiences of several young entrepreneurs, or
those who support them.
The following pages of this publication are rich with examples of how various organizations navigated through
complex operating environments to impact the lives of young people throughout the world. Many of those
organizations explain how young people were engaged in various steps of program design, implementation,
and evaluation. Other organizations share how:
• Projects were tailored to fit the particular context of a given country or target population or
adjusted to respond better to young peoples’ needs or a changing operating context.
• Partnerships allowed them to combine resources and expertise to make an idea a reality.
• They created a tool to fill a programming need or create guidance based on their YEELD
experiences.
• Monitoring and evaluation results led them to think differently about their programming.
Given the diversity and number of organizations sharing their experiences, the following section will assist
readers to know how best to use the publication to meet their learning needs or particular interests.
18
Table of Cont
Annexes
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
Voices: Young Entrepreneurs Speak to their Experiences
Nicardo Neil described the work of the
Competitiveness Company promoting a value chain
in the ghettos of Jamaica where young men deal with
the daily realities of unemployment and violence.
Young men reported that they raised fish in tubs in
their backyards for varying reasons, either they were
taught by a father figure or they enjoyed keeping fish
as children. Nicardo and his team researched the value
chain and found that ornamental fish, ranging from
pet goldfish to high-end tropical fish like Discus and
Koi, are part of a US$6 billion global export industry.
The company has worked to form clusters of over
300 young men, trained them in fish cultivation,
provided them better technology, and created enough
producers to achieve the volume necessary for export.
They’ve also worked to develop more local exporters,
a critical component if the production of so many
small fish farmers is to be aggregated and marketed
worldwide.
www.youtube.com/watch?v=Df_UQy5-dKM
John Alexis Guerra, as an engineering student in a
small city of Colombia, was interested in a final thesis
project that didn’t “make rich people richer.” He and
his friends designed and tested a device that would
help blind children distinguish and feel colors, thus
allowing them to participate in the world and have a
more fulfilling experience in traditional classrooms.
Over a period of years, DUTO S.A. and its IRIS project
have received international recognitions. People told
John he was crazy, but he and his team believed in the
product and its potential to change children’s lives.
www.duto.org.
Noah Bopp founded the School for Ethics and
Global Leadership, a semester-long charter school
that educates American high school students to be
ethically strong and internationally aware. He said,
“It’s not enough to create more leaders, we have to
think about what kind of leaders we want to create.” In
Washington DC, the school provokes young people to
think about how the world works, identify solutions to
problems in their communities, and focus on solving
those problems as a keystone project.
www.schoolforethics.org.
Martin Mayorga and his family fled Nicaragua and
migrated to the United States over 25 years ago. Of
Guatemalan and Nicaraguan heritage, Martin grew
up visiting both countries and bringing back coffee
and cigars. He launched Mayorga Coffee, paying for
most of the start-up costs on a credit card, to change
the antiquated structure of the coffee export business
in Central America and create a more advantageous
relationship for coffee producers who are often at the
mercy of unfair pre-harvest financing. The company
now employs more than 100 people and wholesales to
over 1,500 retailers, including Costco Wholesale, Giant
Foods, Whole Foods, Sodexo, Sams Club, and other
regional and national chains. Mayorga Coffee is proud
to support organic and environmentally sustainable
coffee. For more information, see
www.mayorgacoffee.com/learn/about.
D . What Should I Know About This Publication?
This publication is a consolidation and synthesis of the key findings and lessons learned, common challenges
and recommended next steps that participants highlighted during the 2010 conference. While it is not an
exhaustive review of global practice, it offers an intriguing look into the current state and evolution of the
field. The experiences and ideas in this publication detail how many members of the global community are
building upon the past and working towards achieving ambitious goals for the field. Their recent experiences,
19
Introduction
Marcella Echavarria began as a journalist and an
aficionado of traditional handicrafts in Colombia and
the Andean region. After connecting with artisans
throughout Latin America, she cold-called Donna
Karan in New York, looking for a connection to the
fashion world. From that fortuitous moment, she
launched her own company, SURevolution, selling
traditional designs to a luxury market. She took risks,
defended the integrity of traditional design, expanded
to Asia and Africa, and is thrilled to see Colombians,
as well as fashion-lovers everywhere, valuing the
traditional designs of artisans from around the world.
www.surevolution.com/intro.htm
www.marcellaechavarria.com
Table of Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Conclusion
Annexes
generated in countries, classrooms, foundations, governments, and businesses throughout the world,
represent the “real-time” evolution of the field. Chapters reflect the insights, analysis, and recommendations
generated by conference presenters and/or the synergy between presenters and participants.
Introduction
To capture the rich and multi-faceted learning from the event, this publication follows the overall design of
the conference. The five tracks/themes of the conference were:
• Youth Enterprise Development
• Workforce Development
• Youth-Inclusive Financial Services and Financial Capabilities
• Adolescent Girls and Young Women
• Monitoring, Evaluation and Impact Assessment
Within the publication, the key findings and programmatic examples related to these tracks/themes are
dispersed within and across different chapters. Some examples fit into more than one track. For example,
gender approaches to workforce development are included in the workforce development chapter, although
they could also fit in the chapter on adolescent girls and young women.
E . How Should I Use This Publication?
Feel free to extract information and learning from chapters of particular interest or review all chapters based
on your interests and needs. Programmatic examples provide additional insight and ground lessons learned
within their operative contexts. In order to facilitate a quick read, certain sections include a small icon to help
identify what the example offers.
Noteworthy Results share evaluation or other results from YEELD programs operating throughout
the world and include a brief description of the program.
New tools include training manuals, monitoring and evaluation resources, websites, publications,
and any other resources that might be of use to members of the YEELD field. The annexes also
include relevant resources that members of this community produced in 2009-2010.
Hot topics refer to points of debate or discussion within the field. These may be topics that have
recently emerged or that have consistently inspired debate amongst practitioners.
Bright ideas include new or interesting approaches worth highlighting. They may refer to an
innovation relevant to the entire field or to a region or operating context.
Practical tips capture practitioners’ advice, techniques or some other learning crystallized from
programmatic examples and on-the-ground experience.
Checklists offer new ways for practitioners and others to think about whether they have the
components necessary to be successful. They are extracted from presentations shared at the
conference.
Voices of participants, presenters or other experts in the field make learning personal; describing
anecdotes and experiences that shaped colleagues’ perspectives about an issue in the field.
20
Table of Cont
DOCUMENT CLÉ Etat du secteur de l’inclusion financière des jeunes
Making Cents International • 1155 30th Street NW, Suite 300 • Washington, D.C. 20007
Tel.: +1 202-783-4090 • Fax: +1 202 -783-4091 • Web: www.makingcents.com • Email: [email protected] • Skype:
Makingcentsinfo
Etat du secteur de l’inclusion financière des jeunes
Traduction française de :
State of the Youth-Inclusive Financial Services Sector
Auteur : Making Cents International
Juin 2010
La population de jeunes n’a jamais été aussi nombreuse. On évalue à 3 milliards le nombre de moins de 25 ans dans le monde, dont environ 1,3 milliard ont entre 15 et 24 ans. Selon les estimations de l’ONU1, un peu moins de la moitié de ces jeunes vit avec moins de deux dollars par jour. L’accès à des services financiers appropriés peut donc être déterminant pour les aider à relever les défis et à saisir les opportunités qui se présentent à eux, quel que soit leur niveau d’éducation ou leur situation d’emploi. Que sont les services financiers aux jeunes ?
Les services financiers aux jeunes sont des services de crédit, d’épargne, d’assurance, de transfert d’argent et de carte de crédit spécifiquement conçus pour répondre aux besoins du segment des jeunes. Qui sont les jeunes ?
La définition de ce groupe varie, parfois au sein d’une même organisation. Si l’ONU utilise le terme « jeunesse » (youth) pour qualifier la tranche d’âge des 15‐24 ans et celui de « jeunes » (young people) pour les 12‐24 ans, les différents pays ont leurs propres catégories qui vont parfois au‐delà de 35 ans. Les organisations et les projets de mise en œuvre ont, eux aussi, leur propre définition à des fins de programmation. Etant données les différences en matière de règlements, de politiques et de programmes, il est difficile de s’entendre sur une définition claire et universelle de la jeunesse. Qui plus est, la jeunesse n’est pas une population homogène. D’où l’importance de mettre les services financiers en relation avec le cycle de vie des jeunes (situation familiale, niveau scolaire, situation d’emploi, etc.), pas nécessairement avec leur âge. Enfin, certains environnements disposent de réglementations propres à l’âge qui doivent être prises en compte. Qui fournit des services financiers aux jeunes ?
Ces services sont généralement proposés par une large gamme de prestataires de services financiers, y compris des établissements financiers formels comme des banques commerciales ; des institutions de microfinance ; et des institutions gérées par des communautés ou détenues par leurs membres. De nombreuses organisations de soutien aux jeunes se mettent en relation avec des prestataires de services financiers pour offrir de tels services, complétant souvent l’action de ces derniers par des services sociaux ou non financiers. Pourquoi les jeunes ont-ils besoin de services financiers ?
YouthSave Consortium. Youth Savings in Developing Countries: Trends in Practice, Gaps in Knowledge.
YouthSave Initiative, 2010. 1
1
compris des établissements financiers formels comme des banques commerciales ; des institutions de microfinance ; et des institutions gérées par des communautés ou détenues par leurs membres. De nombreuses organisations de soutien aux jeunes se mettent en relation avec des prestataires de DOCUMENT CLÉ Etat du secteur de l’inclusion financière des jeunes
services financiers pour offrir de tels services, complétant souvent l’action de ces derniers par des services sociaux ou non financiers. Pourquoi les jeunes ont-ils besoin de services financiers ?
Que ce soit sous la forme d’une épargne sûre ou d’un prêt adapté destiné à investir dans une entreprise ou une formation, les services financiers peuvent faire partie intégrante de la stratégie de subsistance 1
des jeunes. Le fait de leur proposer ces services à un moment opportun de leur vie, avec un réseau YouthSave Consortium. Youth Savings in Developing Countries: Trends in Practice, Gaps in Knowledge.
d’aide approprié, peut les aider à améliorer leur subsistance à court terme et à créer les bases d’une YouthSave Initiative, 2010. existence productive à long terme. Qui plus est, la prestation de services financiers aux jeunes permet d’éviter que la vulnérabilité si répandue aujourd’hui dans cette tranche de la population ne se 1
transforme en crise2. Ci‐dessous quelques raisons spécifiques expliquant pourquoi les jeunes ont besoin de services financiers : 1. Les jeunes sont économiquement actifs : Nombre de personnes considèrent que les jeunes non officiellement employés sont inactifs ou participent à des activités non productives. Les études révèlent cependant que la plupart des 14‐25 ans vivant dans les pays en développement, quel que soit le lieu, sont économiquement actifs. Ils contribuent au revenu du ménage « en travaillant dans le secteur informel, en s’investissant dans des entreprises à domicile ou en participant à des activités familiales d’agriculture, de pêche et de petit commerce »3. Par conséquent, si on améliore leur accès à des services financiers appropriés, les jeunes pourront peut‐être réaliser leur plein potentiel économique. 2. Les jeunes empruntent de l’argent : Lors de certaines phases de transition, les jeunes peuvent avoir besoin d’un crédit pour démarrer une activité, construire une maison ou payer des frais de scolarité. En Ouganda, par exemple, Equity Bank et Banyan Global proposent des crédits permettant à des élèves infirmiers de régler leurs droits, principal obstacle à l’inscription pour ces jeunes âgés de 17 à 24 ans. Camfed, une ONG zambienne, offre du mentoring, des crédits et des subventions pour la promotion des jeunes femmes qui peuvent alors bâtir une maison, se lancer dans l’agriculture ou tenir une petite entreprise. Parmi les jeunes clientes de cette organisation, 20 % utilisent les bénéfices dégagés de leurs activités pour améliorer leur éducation4. Ainsi, s’il est essentiel que les jeunes aient accès au crédit, il est tout aussi important de concevoir des produits de prêt adaptés aux grandes phases de transition de leur vie (entrer dans la vie active, entamer des études supérieures, se marier, etc.). 3. Les jeunes ont besoin d’une épargne : L’épargne peut aider les jeunes à faire face à toutes sortes de dépenses : consommation, situations d’urgence, éducation, besoins familiaux de base. Elle peut aussi leur permettre de couvrir les coûts d’événements importants comme les mariages et les enterrements. A ce jour, l’expérience a montré que les jeunes épargnent. Des études suggèrent même que l’épargne peut jouer un rôle plus déterminant que le crédit dans la mesure où elle favorise de bonnes habitudes consistant à planifier et à se fixer des objectifs. Selon un récent MicroReport de l’USAID, les jeunes ont des exigences similaires en ce qui concerne les services d’épargne que les adultes à faibles revenus : un accès pratique, une certaine sécurité, des liquidités en cas d’urgence et un lieu sûr où accumuler des sommes plus importantes5. 2
D’après State of the Field in Youth Enterprise, Employment and Livelihoods Development: Programming
and Policymaking in Youth Enterprise, Employment, and Livelihoods Development; and Youth-Inclusive
Financial Services, Making Cents International, septembre 2009. 3
James‐Wilson, David. Youth Livelihoods Development Program Guide. USAID : juin 2008, p. 6. 4
State of the Field in Youth Enterprise, Employment and Livelihoods Development: Programming and
Policymaking in Youth Enterprise, Employment, and Livelihoods Development; and Youth-Inclusive
Financial Services, Making Cents International, septembre 2008, p. 79 5
Hirschland, Madeline. MicroReport #163: Youth Savings Accounts: A Financial Service Perspective.
USAID, 2009. 2
4. Les jeunes veulent se constituer d’autres formes de capital : Outre le capital financier, les jeunes peuvent utiliser leur travail dans les secteurs formel et informel pour se constituer un capital social. Les groupes de caution solidaire sont souvent considérés comme un moyen efficace de fournir des services financiers aux jeunes, car ils peuvent leur donner une excellente opportunité d’interagir et de former des réseaux sociaux solides. Quels types de services financiers sont offerts aux jeunes ? 1. Crédit : Le crédit est le service financier le plus couramment offert aux jeunes. C’est aussi le principal produit que les prestataires de services financiers proposent à cette catégorie de clients. De manière générale, la microfinance a toujours privilégié le crédit, ce dernier étant moins complexe à administrer et plus rentable. Une enquête menée auprès de prestataires de services financiers a révélé que 85% offraient des produits de prêt et 63% des produits d’épargne6. 2. Epargne : Bien que le crédit soit le principal service financier offert aux jeunes, les premiers résultats de l’enquête mondiale sur l’inclusion financière des jeunes indiquent un glissement vers l’épargne. Interrogés sur les tendances qu’ils observent, les prestataires répondent que la demande progresse pour tous les types de produits mais surtout pour l’épargne. Il est intéressant de proposer des services d’épargne adaptés dès le plus jeune âge afin de créer de bonnes habitudes et d’inclure les jeunes à un stade précoce dans le système financier. Aux Philippines, par exemple, la coopérative PMPC (Panabo Multi‐Purpose Cooperative) met en place des mesures d’incitation spécifiques pour certains groupes cibles : des tirelires pour les 0‐12 ans (Youth Savers Club), des tasses, sacs bananes et porte‐clés pour les 13‐18 ans (Power Teens). 3. Assurances et transferts d’argent : Un grand nombre de prestataires de services financiers n’offrent pas encore d’assurance ni de transferts d’argent aux jeunes. Pourtant, ceux‐ci en auraient besoin pour faire face à certaines exigences dans leur vie privée et professionnelle. L’assurance‐maladie est incontestablement le produit le plus important, mais il est coûteux et complexe à fournir. Parmi les prestataires interrogés, aucun ne propose pour l’instant ce type de produit aux jeunes7. En ce qui concerne les transferts d’argent, les jeunes font partie de la main d’œuvre migrante dans de nombreux pays et constituent, de manière générale, un segment mobile pour lequel ces services s’avèrent d’autant plus essentiels. Quels sont les principaux avantages institutionnels liés à la fourniture de services
financiers aux jeunes ?
1. Vaste marché potentiel : La population de jeunes n’a jamais été aussi nombreuse. On évalue à 3 milliards le nombre de moins de 25 ans dans le monde, dont environ 40 % ont entre 15 et 24 ans8. En outre, les tendances indiquent que leur nombre augmentera d’un milliard au cours des dix prochaines années. Les jeunes représentent donc le plus vaste marché inexploité pour les prestataires de services financiers qui les servent de manière inadaptée ou incomplète. 6
Résultats préliminaires d’une enquête mondiale de Making Cents International sur l’inclusion financière des jeunes. Global Youth‐Inclusive Financial Services Survey, septembre 2009 ; n = 131. 7
7 Ibid. 8
8 Ibid. 3
2. Ventes croisées : Les jeunes étant liés à un ménage, les prestataires de services financiers peuvent trouver parmi les autres membres de la famille des clients potentiels pour des produits traditionnels. Ils élargissent ainsi leur portée, améliorant de ce fait la rentabilité des transactions de faible montant. Qui plus est, à mesure que les jeunes vieillissent et entrent dans de nouvelles phases de leur vie (fondent une famille, par exemple), ils peuvent se tourner vers des produits financiers plus rentables comme un 2. Ventes croisées : Les jeunes étant liés à un ménage, les prestataires de services financiers peuvent crédit immobilier. trouver parmi les autres membres de la famille des clients potentiels pour des produits traditionnels. Ils élargissent ainsi leur portée, améliorant de ce fait la rentabilité des transactions de faible montant. Qui 3.
Fidélisation des clients : Le fait de servir des clients à un jeune âge permet de gagner une plus est, à mesure que les jeunes vieillissent et entrent dans de nouvelles phases de leur vie (fondent clientèle durable et de limiter les pertes de clients qui peuvent être coûteuses pour les institutions. une famille, par exemple), ils peuvent se tourner vers des produits financiers plus rentables comme un L’épargne à long terme des jeunes peut en outre augmenter les fonds que les prestataires de services crédit immobilier. financiers peuvent mobiliser pour octroyer des prêts. 3. Fidélisation des clients : Le fait de servir des clients à un jeune âge permet de gagner une 4. Les jeunes sont déjà servis mais pas intentionnellement : Les prestataires de services clientèle durable et de limiter les pertes de clients qui peuvent être coûteuses pour les institutions. financiers servent déjà les jeunes. Cependant, nombre d’entre eux ne décomposent pas leur portefeuille L’épargne à long terme des jeunes peut en outre augmenter les fonds que les prestataires de services pour différencier la portée ou la performance en fonction de l’âge. En Indonésie, par exemple, 22 % en financiers peuvent mobiliser pour octroyer des prêts. moyenne des clients des IMF sont jeunes (c’est‐à‐dire âgés de moins de 30 ans)9. En Bolivie, on estime que les jeunes représentent déjà 5 à 25 % de la clientèle des IMF. Selon une autre enquête, près de 25 % 4. Les jeunes sont déjà servis mais pas intentionnellement : Les prestataires de services des clients d’IMF dans le monde ont entre 15 et 24 ans10. Une conclusion majeure s’impose : si les financiers servent déjà les jeunes. Cependant, nombre d’entre eux ne décomposent pas leur portefeuille institutions réalisaient parmi leurs jeunes clients existants des études de marché ciblées et adaptaient pour différencier la portée ou la performance en fonction de l’âge. En Indonésie, par exemple, 22 % en volontairement leurs produits aux besoins de ces derniers, elles pourraient améliorer la performance de moyenne des clients des IMF sont jeunes (c’est‐à‐dire âgés de moins de 30 ans)9. En Bolivie, on estime leur portefeuille et accroître leurs profits. que les jeunes représentent déjà 5 à 25 % de la clientèle des IMF. Selon une autre enquête, près de 25 % des clients d’IMF dans le monde ont entre 15 et 24 ans10. Une conclusion majeure s’impose : si les Quels sont les principaux obstacles à l’inclusion financière des jeunes et comment les
institutions réalisaient parmi leurs jeunes clients existants des études de marché ciblées et adaptaient surmonter
?
volontairement leurs produits aux besoins de ces derniers, elles pourraient améliorer la performance de L’enquête « Global Youth‐inclusive Financial Services Survey » réalisée en septembre 2009 a identifié leur portefeuille et accroître leurs profits. plusieurs obstacles à l’inclusion financière des jeunes, illustrés dans le tableau suivant. 11
Quels sontperçus
les principaux
obstacles
à l’inclusion
financière
des jeunes et comment les
Obstacles
à l’inclusion
financière
des jeunes
surmonter
?
Les principaux obstacles observés étaient les suivants : L’enquête « Global Youth‐inclusive Financial Services Survey » réalisée en septembre 2009 a identifié plusieurs obstacles à l’inclusion financière des jeunes, illustrés dans le tableau suivant. Obstacles perçus à l’inclusion financière des jeunes11
Les principaux obstacles observés étaient les suivants : 9
Shrader, Leesa, Nagwa Kamal, Wahyu Aris Darmono et Don Johnston. Youth and Access to Microfinance in
Indonesia:
Outreach and Options. ImagineNations et le Groupe de la Banque Mondiale : 26 juin 2006. 10
Hirschland, Madeline. MicroReport #163: Youth Savings Accounts: A Financial Service Perspective.
Parmi les difficultés spécifiques figurent : USAID, 2009. 11
Résultats préliminaires d’une enquête mondiale de Making Cents International sur l’inclusion financière des 1.
9 Personnel : Les prestataires de services financiers ont répondu que l’obstacle le plus courant à Shrader, Leesa, Nagwa Kamal, Wahyu Aris Darmono et Don Johnston. Youth and Access to Microfinance in
jeunes. Global Youth‐Inclusive Financial Services Survey, septembre 2009. l’inclusion financière des jeunes était l’image négative que le personnel a de cette catégorie de Indonesia: Outreach and Options. ImagineNations et le Groupe de la Banque Mondiale : 26 juin 2006. 10
population. Ainsi, 45 % d’entre eux ont indiqué que leurs employés considèrent les jeunes comme Hirschland, Madeline. MicroReport #163: Youth Savings Accounts: A Financial Service Perspective.
USAID, 2009. irresponsables, incapables de gérer de l’argent et représentant un risque en raison de l’absence de 4
11
garantie. Nombre de prestataires ont également déclaré qu’ils manquaient de ressources humaines Résultats préliminaires d’une enquête mondiale de Making Cents International sur l’inclusion financière des qualifiées pour offrir des produits supplémentaires aux jeunes. jeunes. Global Youth‐Inclusive Financial Services Survey, septembre 2009. 2. Marché à haut risque : Les résultats préliminaires de l’enquête menée par Making Cents ont 4
révélé que 42 % des prestataires de services financiers percevaient les jeunes comme un marché à haut risque. Pourtant, en Indonésie, les jeunes emprunteurs présentent en moyenne des taux de remboursement supérieurs à ceux des emprunteurs adultes. Cette constatation se vérifie pour la majorité des IMF, même lorsque les jeunes bénéficient de prêts de taille équivalente ou supérieure à 20ème Midi de la microfinance p 22
celle d’un emprunteur standard12. Dans une autre étude axée sur l’offre, la plupart des institutions ne servant pas de jeunes estimaient que ces derniers généraient des risques ou des coûts supérieurs. En revanche, celles qui comptaient des jeunes parmi leurs clients ne les associaient ni à des taux de DOCUMENT CLÉ Etat du secteur de l’inclusion financière des jeunes
Parmi les difficultés spécifiques figurent : 1. Personnel : Les prestataires de services financiers ont répondu que l’obstacle le plus courant à l’inclusion financière des jeunes était l’image négative que le personnel a de cette catégorie de population. Ainsi, 45 % d’entre eux ont indiqué que leurs employés considèrent les jeunes comme irresponsables, incapables de gérer de l’argent et représentant un risque en raison de l’absence de garantie. Nombre de prestataires ont également déclaré qu’ils manquaient de ressources humaines qualifiées pour offrir des produits supplémentaires aux jeunes. 2. Marché à haut risque : Les résultats préliminaires de l’enquête menée par Making Cents ont révélé que 42 % des prestataires de services financiers percevaient les jeunes comme un marché à haut risque. Pourtant, en Indonésie, les jeunes emprunteurs présentent en moyenne des taux de remboursement supérieurs à ceux des emprunteurs adultes. Cette constatation se vérifie pour la majorité des IMF, même lorsque les jeunes bénéficient de prêts de taille équivalente ou supérieure à celle d’un emprunteur standard12. Dans une autre étude axée sur l’offre, la plupart des institutions ne servant pas de jeunes estimaient que ces derniers généraient des risques ou des coûts supérieurs. En revanche, celles qui comptaient des jeunes parmi leurs clients ne les associaient ni à des taux de remboursement plus faibles ni à des frais administratifs plus élevés13. Ces résultats suggèrent que les prestataires de services financiers ont leurs propres préjugés concernant les jeunes (45 % des prestataires interrogés ont mentionné que l’attitude du personnel était le principal obstacle à l’inclusion financière des jeunes)14. Il est donc important de commencer par changer ces perceptions. 3. Coûts : De nombreux prestataires sont préoccupés par le coût et la pérennité des services financiers offerts aux jeunes dans la mesure où ils concernent généralement des transactions de faible montant et entraînent des coûts d’exploitation supérieurs. Néanmoins, selon une étude, 8 % seulement des organisations proposant des services de microfinance aux jeunes estiment que les frais administratifs sont plus élevés pour ces derniers. En outre, la plupart des prestataires interrogés (54 %) sont d’avis que Shrader, Leesa, Nagwa Kamal, Wahyu Aris Darmono et Don Johnston. Youth and Access to Microfinance in
Indonesia: Outreach and Options. ImagineNations et le Groupe de la Banque Mondiale : 26 juin 2006. 13
Nagarajan, Geetha. Serving Youth with Microfinance: Perspectives of Microfinance Institutions and Youth
Serving Organizations. USAID : septembre 2005 12
14
Résultats préliminaires d’une enquête mondiale de Making Cents International sur l’inclusion financière des jeunes. Global Youth‐Inclusive Financial Services Survey, septembre 2009 ; n = 131. 5
les coûts du service aux jeunes ne varient pas en fonction d’autres facteurs comme la classe d’âge ou le sexe15. ProMujer, en Bolivie, a établi que des investissements plus directs en matière d’étude de marché, de développement de produit, de personnel et d’infrastructure pourraient provoquer une baisse des coûts sur la durée. Les jeunes peuvent également être considérés comme des clients à long terme, c’est‐à‐dire assimilés à un vaste marché engendrant des investissements et une rentabilité durables. En effet, s’ils deviennent des clients et demeurent dans le portefeuille d’un prestataire, ils se tournent au fil du temps, à mesure qu’ils vieillissent, vers des produits plus rentables. Lorsqu’ils sont réglementés, les dépôts d’épargne de faible montant sur des comptes jeunes peuvent se transformer en réserves importantes pour les prestataires de services financiers. Au Sri Lanka, par exemple, Hatton National Bank compte actuellement 600 000 jeunes épargnants et détient 20 millions de dollars qu’elle peut prêter. Les prestataires peuvent également réduire les coûts liés à l’inclusion des jeunes en tirant profit de technologies comme la banque mobile. 4. Les jeunes peuvent avoir besoin de services supplémentaires : Les jeunes peuvent aussi avoir besoin de services non financiers supplémentaires qui peuvent s’avérer coûteux et difficiles à gérer sans les compétences appropriées. Des partenariats avec des organisations de soutien aux jeunes et des organismes communautaires peuvent aider les prestataires de services financiers à fournir des services non financiers à un coût réduit. Ainsi, Women’s World Banking, qui s’est associée à XacBank en Mongolie pour offrir des comptes d’épargne aux jeunes filles, fait appel à des écoles locales pour dispenser une éducation financière. 5. Barrières légales et réglementaires : Près de la moitié (41 %) des institutions servant les jeunes ont également cité les barrières légales et réglementaires comme obstacle majeur. Complexes, ces barrières échappent souvent au contrôle des prestataires de services financiers. Dans de nombreux pays, l’âge minimum pour contracter un prêt est de 18 ans, ce qui limite l’accès au crédit pour les jeunes. En outre, beaucoup de prestataires à vocation sociale qui souhaitent proposer des comptes d’épargne aux jeunes sont des ONG ou des institutions non réglementées. A ce titre, elles ne peuvent accepter et/ou mobiliser des dépôts que de manière limitée, ce qui augmente le coût du produit et le rend moins attrayant à offrir. Néanmoins, certaines institutions ont pu s’affranchir de ces restrictions grâce à des solutions créatives : avoir recours à des méthodologies de groupe pour la population jeune sous‐desservie ou faire intervenir les parents ou des mentors en tant que cosignataires lorsque les mineurs ne sont pas autorisés à signer des contrats. Pour surmonter de telles barrières et servir des adolescentes dans des bidonvilles kenyans, Population Council et MicroSave ont intégré des mentors comme cosignataires dans leur système de crédit. Comment trouver dans une région un partenaire en vue d’offrir des services financiers
aux jeunes ?
Les institutions doivent se concentrer sur leur cœur de métier et collaborer avec des institutions à l’action complémentaire. Ainsi, des organisations de soutien aux jeunes et des prestataires de services financiers peuvent s’associer en vue d’offrir le meilleur ensemble de services possible à un segment de jeunes particulier. 15 Nagarajan, Geetha. Serving Youth with Microfinance: Perspectives of Microfinance Institutions and
15
Youth Serving Organizations. USAID : septembre 2005 6
Les organisations de soutien aux jeunes ont l’habitude de fournir à ces derniers des services non financiers et sociaux. En outre, elles comprennent souvent les besoins, les aspirations et les comportements des populations jeunes dans leurs environnements et sur leurs marchés. A mesure qu’ils pénètrent le marché des jeunes, les prestataires de services financiers peuvent se tourner vers ces organisations, les écoles, les paroisses et d’autres organismes communautaires travaillant déjà avec des jeunes pour apprendre à mieux connaître leur clientèle. Les organisations de soutien aux jeunes peuvent fournir de manière efficace les services non financiers complémentaires dont un segment de jeunes peut avoir besoin pour tirer pleinement profit des services financiers offerts (exemples : renforcement des aptitudes à la vie courante, services d’appui aux entreprises, formation professionnelle). Les organisations de soutien aux jeunes peuvent également se rendre compte que les jeunes avec lesquels elles travaillent ont besoin d’accéder à des comptes de crédit ou d’épargne tout en sachant qu’elles n’ont ni les systèmes ni les compétences nécessaires pour offrir des services financiers. En s’associant avec un prestataire de services financiers, elles peuvent se concentrer sur leur cœur de métier tout en donnant aux jeunes la possibilité d’accéder à des services financiers appropriés. Quelles bonnes pratiques voit-on émerger en matière d’inclusion financière des
jeunes ?16 Des travaux collaboratifs, des études de cas et des discussions entre représentants de prestataires de services financiers et d’organisations de soutien aux jeunes ont fait ressortir six premiers principes directeurs en matière d’inclusion financière des jeunes. A mesure que nous en apprendrons davantage de la part des praticiens lors de conférences et dans nos cours sur les services financiers aux jeunes, nous espérons commencer à dégager des bonnes pratiques pour le secteur. Les principes directeurs sont les suivants : 1. Impliquer les jeunes dans l’étude de marché et le développement de produits. Identifier les spécificités du marché des jeunes et impliquer les jeunes dans le processus de développement de produit permet d’apporter des changements simples mais essentiels aux produits et canaux de distribution existants (ou de concevoir des produits/canaux de distribution adaptés). 2. Elaborer des produits et services reflétant la diversité des jeunes. Le marché des jeunes comprend des sous‐segments liés à différents facteurs : âge (par rapport au seuil légal), stade du cycle de vie (situation familiale), sexe, éducation, situation d’emploi et vulnérabilité. Ces différences doivent être prises en compte lors de la conception et de la fourniture des produits financiers. 3. S’assurer que les jeunes disposent d’espaces sûrs et dédiés à leur soutien. On distingue les espaces physiques, tel qu’un lieu de réunion, et les espaces émotionnels, tel que l’opportunité de s’engager dans des services financiers sans les parents. De tels espaces peuvent renforcer la confiance des jeunes et leur permettre de saisir des opportunités. Il peut s’agir d’infrastructures, de mécanismes de prestation ou de réseaux sociaux. Cela inclut également une protection par le biais de codes de conduite adaptés à chaque âge. 16
State of the Field in Youth Enterprise, Employment and Livelihoods Development: Programming and
Policymaking in Youth Enterprise, Employment, and Livelihoods Development; and Youth-Inclusive
Financial Services, Making Cents International, septembre 2009 7
4. Fournir des services non financiers complémentaires ou mettre les jeunes en lien avec
ces services. Cela peut recouvrir le mentoring, l’éducation financière, l’instauration d’une culture d’épargne ou le renforcement des aptitudes à la vie courante. 5. Se concentrer sur son cœur de métier et recourir au partenariat. Les prestataires de services financiers doivent évaluer leurs propres capacités institutionnelles et recourir, notamment pour les espaces sûrs et les services non financiers, à des collaborations avec des organismes à l’action complémentaire : organisations de soutien aux jeunes, écoles, instituts de formation et d’autres entités. 6. Impliquer la communauté. A commencer par la famille, mais aussi les écoles, enseignants et autres groupes locaux pour renforcer mutuellement services financiers et non financiers et améliorer leur efficacité. Pour en savoir plus
Les services financiers aux jeunes sont un secteur relativement récent. Pour l’instant, nous en sommes encore aux phases initiales de discussion, de recherche et de compréhension en la matière. Le programme Youth‐ Inclusive Financial Services Linkage (YFS‐Link) est une initiative mondiale dont l’objectif est d’étendre l’accès des jeunes à des services financiers de qualité en renforçant les capacités des prestataires de services financiers et des organisations de soutien aux jeunes. Sur la plate‐forme en ligne de YFS‐Link (yfslink.org), vous pouvez consulter des ressources, poser des questions, dialoguer avec des praticiens et échanger des informations sur les dernières évolutions dans ce domaine. YFS‐Link propose également des séminaires sur les services financiers aux jeunes qui peuvent aider votre organisation à se lancer dans la prestation de services financiers appropriés à des populations de jeunes. Pour de plus amples informations, contactez [email protected]. Making Cents International • 1155 30th Street NW, Suite 300 • Washington, D.C. 20007
Tel.: +1 202-783-4090 • Fax: +1 202 -783-4091 • Web: www.makingcents.com • Email: [email protected] • Skype:
Makingcentsinfo
8
DoCuMeNT CLé BuiLDiNG susTaiNaBLe BusiNess MoDeLs For YouTh FiNaNCiaL serviCes
Building Sustainable Business Models for
Youth Financial Services
AuthorS
Vivian Ibania rivas Schurer, Catholic relief Services; robert Magala Lule,
FINCA uganda and Alice Lubwama, FINCA uganda
case study
Innovations in Youth
Financial Services
Practitioner Learning
Program
November 2011
Introduction
Approximately 18 percent of the world’s population, or 1.8 billion youth, fall between the ages of 15 and
24.1 While youth currently represent one of the fastest growing segments of the world’s population, a
large majority of young people, especially in developing countries, do not have access to appropriate
financial services. This limits their ability to save in a secure place, to obtain loans to pursue goals and to
send or receive money safely. Sustainable and scalable delivery of financial services to youth, especially
in the developing world, is an ongoing challenge. In order to provide long-lasting financial services to
the large numbers of youth who are currently excluded, institutions must be able to incorporate such
products into a sustainable business model. To do this, financial institutions could adjust their business
models to incorporate youth initiatives or simply better understand how youth products can fit into
their existing models.
Globally, youth financial services are still at a nascent stage, and while many institutions have begun
experimenting with products and delivery systems, there is little consensus on how best to reach scale.
A number of success stories have emerged though, illustrating that it is possible to provide sustainable
youth financial products at scale. This early evidence indicates that youth products are sufficiently different from mainstream financial services and warrant specific examination. Scaling up products for youth
requires special consideration, particularly in connection to timeframe since it may take longer for organizations to create and deliver sustainable youth products. In parallel, while youth products may take
longer to achieve profitability, there are significant long-term social and economic benefits to providing
such services. The YouthSave Consortium emphasizes the value of reaching young clients when new
habits are easier to form and points to the dual benefits of youth development and economic inclusion
that can be achieved with youth savings accounts: “Where it exists, evidence suggests that initiatives
that enable low-income and vulnerable youth to accumulate assets may have the potential to improve
the well-being of this population.”2
Drawing on the experiences of FINCA Uganda, CRS-El Salvador and Enlace, this case study explores two
different business models currently being utilized by practitioners working in youth financial services
and illustrates ways to effectively integrate youth products as a way to scale up.
Key Definitions and Concepts
A. Business Model
Although there is little consensus on what constitutes a business
model in the financial services industry, for the purposes of this
discussion, it is conceptualized as the connection between an institution’s strategy, its structure and its processes.3 In the simplest terms,
a business model describes what a business does and how it plans to
make money doing these things.4 It also includes both the creation of
value and the capture of value. In the case of youth financial services, a financial institution may create value (both quantifiable and
A business model is the connection between an institution’s strategy, structure and
processes that clearly outlines
how the organization will create and capture value.
1 UN Department of Economic and Social Affairs Population Division, n.d., “Detailed Population Indicators,” UN, New York,
http://esa.un.org/unpd/wpp/unpp/panel_indicators.htm, (accessed October 25, 2011).
2 Youth Savings in Developing Countries: Trends in Practice, Gaps in Knowledge. Youth Save Consortium, May 2010.
3 Mayson, S. Business Models in Legal Practice. Georgetown University, 2010. Accessible at: http://www.law.georgetown.edu/
LegalProfession/documents/Mayson.pdf
4 Herman, G., D’Urso, V., Malone, T., Weill, P. & Woerner, S. Do Some Business Models Perform Better than Others? A Study of the
1000 U.S. Largest Firms. Sloan School of Management, MIT. Accessible at: http://ccs.mit.edu/papers/pdf/wp226.pdf
3
unquantifiable) through the development and delivery of new products and services, such as savings
accounts for youth or financial education. Offering youth financial services also allows organizations
to capture value in a variety of ways. Quantifiable captured value can include financial profit for the
organization and larger numbers of clients, including uptake of new customers through cross selling
products to family members of youth clients. Non-quantifiable value may include the improvement of
the institution’s reputation in the community. A viable business model allows an organization to balance
core internal elements (products/services, resources and strategy) with the external environment in
which the business operates.
A business model can be further defined by three interconnected elements:
1. Strategic considerations and objectives:
•
•
•
•
Whichclientsegmentsdoestheorganizationtarget?
Howisitpositionedinthemarket?
Whattypesofproductsandservicesdoestheorganizationoffer?
Howarenewproductsdevelopedandpriced?
2. Resources required:
• Whatknowledge,skillsandresourcesdoestheorganizationneedinordertocreatevalueforitsclients and achieve its objectives?
• Aretheseresourcesinternalorexternal?
• Doestheorganizationpartnerinordertoaccesstheseresources?
• Howdoestheorganizationbuildandfinanceactivitiesintheshortandlongterm?
• Whatistheorganization’sfundingstreams?
3. Financial and social outcomes:
• Howdoestheorganizationattainsustainabilityovertime?
• Doestheorganizationrequireeachproducttobreakevenoraresomeinitiativessubsidizedbymore
profitable products?5
• Howsatisfiedareclients?6
• Doestheorganizationmeasuresocialimpact?Ifso,doestheorganizationacceptlowerreturnsdueto
its social mission?
• Istheorganizationcapturingadditionalvaluebeyondthedirectimpactoftheyouthproducts,for
example with cross selling or improved reputation in the community?
Using the framework above, this case study will outline CRS-El Salvador, Enlace and FINCA Uganda’s
business models. It will focus on how their development and delivery of youth financial services fit into
these models and how this has contributed to their strategies for scaling up.
5 The SEEP Network’s Social Performance Management glossary defines breakeven point as the point at which the volume of
sales or revenues exactly equals total expenses—the point at which there is neither a profit nor loss—under varying levels of
activity. The breakeven point tells the manager what level of output or activity is required before the firm can make a profit;
reflects the relationship between costs, volume and profits.
6 Client satisfaction attempts to measure the extent to which clients’ wants, needs and expectations are being met.
4
B. Sustainability
Definitions of sustainability vary, but most microfinance practitioners include measures of financial selfsufficiency balanced with social responsibility to deliver services to clients. Financial sustainability is vital
in order for organizations to offer sustained services without dependency on donors or governments.7
There are varying degrees of sustainability, ranging from financially sustainable to unsustainable.
For any financial product to make business sense for an institution, the revenue it generates must be
sufficient to cover all its related costs. However, for products that require innovation, such as the use of a
new delivery methodology or outreach to a new target market, additional time may be required for the
product to reach financial sustainability.
Institutions define sustainability differently depending on
their business model. For-profit institutions, such as selected MFIs or banks, must generate enough profit from their
portfolio of products to meet all operating costs as well as
generate returns for shareholders. Non-profit organizations,
on the other hand, depend on external funding and may be
able to offer products that do not entirely cover costs. Arguably, these products are not financially sustainable in the
long run, as they rely on external revenue to subsidize costs.
The SEEP Network’s Social Performance
Working Group defines sustainability
as the capability of an organization to
sustain its activities over the long term,
having taken due account of its environmental, social, and human impacts.
The SEEP Network Social Performance Working Group, “Social Performance Glossary,”
October 2006
Many for-profit financial service providers also offer products that are not financially sustainable on their own. These
products may fulfill part of the organization’s social mission, creating avenues of goodwill in the community or region to attract future clients. Alternatively, such products may be designed to reach a target
group that will be more financially viable in the future, such as youth.
For the purposes of this paper, an organization has reached sustainability when all costs are covered by
revenue generated and operations can continue into the future. Profitability, on the other hand, is more
time-bound and provides a snapshot of a point in time. Whereas an organization may be profitable at a
defined point in time, sustainability is measured over a longer time horizon, which is often not defined.
C. Building Sustainable Business Models for Youth Financial
Services—Six Considerations
Organizations wishing to scale up youth financial services must consider how these products will fit into
their organizational business model, ideally from the beginning of the product development phase. Financial service providers should keep in mind certain considerations to ensure long-term sustainability
of youth financial services:
CLIENT-LEVEL CONSIDERATIONS:
1.
Segmentation: Many financial institutions target youth with the intention of securing life-long
customers. However, young people’s life stages are characterized by change, including changing work conditions, geographic locations and household dynamics. Such changes can alter
the financial service needs of youth, requiring financial institutions to respond with flexible
products or a suite of appropriate services. Targeted market research, product development
and regular modifications (all of which require additional resources) may be necessary to counteract the increased mobility and changes that youth experience. Further, regulatory barriers
7 Quang Vinh Evans Luong. Sustainable Microfinance: The balance between financial sustainability and social responsibility. 19th
EDAMBA Summer Academy, 2010. Accessible at: http://www.microfinancegateway.org/gm/document-1.9.45560/sustainable%20
microfinance--.pdf
5
may restrict the types of products that can be offered to different age segments and must be
taken into consideration during the product development stage.
2.
Costs of acquiring and retaining clients: Financial service providers working with youth
clients often have higher-than-normal costs of mobilization and retention due to the inclusion
of unique stakeholders such as parents, community leaders and school officials combined with
competing priorities for youth clients. In addition, institutions targeting youth often perceive
this group as a higher risk market and, as a result, require young clients to receive training or
mentorship. These additional services require increased staff time and, therefore, increase the
overall cost of the financial products.
PRODUCT-LEVEL CONSIDERATIONS:
3.
Product design and features: During the adaption or creation of youth financial products,
organizations must consider the implications of special product features such as preferential
interest rates, longer loan repayment periods or other modifications in order to make products more accessible or attractive to youth clients. Market research may indicate that such
modifications are necessary for youth but they also must be balanced against the costs to
the organization.
4. Complementary activities: Because youth are seen as a higher risk market by many financial
institutions, complementary services such as training or mentorship are often offered to better
prepare young people to make informed decisions about financial services. These services may
incur direct or indirect costs, depending on whether they are offered by existing staff, new staff
or partner institutions and, as such, must be evaluated from a cost perspective during product
development.
INSTITUTIONAL CONSIDERATIONS:
5.
Timeframe: Youth are largely regarded as small volume customers. With savings products,
youth generally have very low average balances coupled with small transaction amounts in limited numbers over a given period. Youth loan clients often choose or are eligible for relatively
small amounts of credit, meaning that their cost to the institution is high in relation to their
share of the loan portfolio. As a result, organizations may need to build in more time for these
youth products to reach sustainability.
6. Scale up: In alignment with scale up targets, organizations should evaluate how the eventual
allocation of necessary scale up resources (financial, operational and human) will affect the
sustainability of the product. Although youth financial products are typically viewed as having
a higher per-client cost, scaling up can also potentially result in selective cost savings as it may
provide the opportunity to reduce costs if economies of scale can be identified.
6
Case Study 1: FINCA Uganda
A. Background
1. Operational Context
Uganda has one of the youngest populations in the world, according to the World Bank’s Africa Development Indicators.8 The under 15 population makes up 49 percent of the total, and youth 10 to 24 years
of age comprise 34 percent of the population.9 Uganda has a population growth rate of 3.2 percent
annually, which translates into approximately 1.2 million new citizens every year. The national percentage of the population living below the poverty line is 31 percent with considerable regional variations
(between 30 and 65 percent in different regions in the country10).
According to the Africa Development Indicators,11 unemployment among youth in Uganda between
the ages of 15 and 24 is as high as 83 percent, one of the highest in the world. The Ugandan Ministry of
Gender, Labour and Social Development noted that 380,000 new graduates compete for an estimated
90,000 jobs available each year.12. In addition, legal and institutional factors often exclude Ugandan
youth from access to financial services. The minimum legal age for signing contracts is 18, which often
forces financial service providers (FSPs) to target youth through their parents, preventing them from
designing specific products tailored to the needs of the growing youth population.13 In addition, many
financial institutions and informal lending groups perceive youth as risky and, as such, institute policies
to limit their access. In Microfinance, Youth and Conflict: Central Uganda Case Study, authors found that
adult microfinance (MFI) clients often excluded youth from lending groups because of perceived risks
associated with youth’s mobility, willingness to take risks, lack of discipline in spending and maturity
levels.14
2. FINCA’s StarGirl Youth Product
FINCA Uganda has been providing financial services to youth since 2009, initially through their FINCA
Junior product targeted at parents and guardians wishing to start savings accounts for their children.
In 2009, FINCA Uganda also introduced the StarGirl youth pilot product specifically targeted to teenage
girls aged 10 to 19. In addition, FINCA Uganda is currently in the process of developing new products
for youth clients, focusing on youth in school (FINCA Super Savers), teenage boys and older youth. This
case study explores the business case for the StarGirl product since it was the first product specifically
targeted to youth clients.
FINCA Uganda’s StarGirl product utilizes a voluntary savings methodology and is offered to girls both in
and out of school who are part of self-managed groups. StarGirl was originally piloted in two peri-urban
branches outside of Kampala, but recently it has expanded to two additional branches in rural areas.
Groups are typically comprised of 10 girls and meet approximately once a week. In addition to facilitating savings activities, StarGirl groups also serve as forums for the delivery of complementary services
such as financial education, peer support and social activities like drama, games and sports.
8 2008/2009
9 Population Reference Bureau, 2008.
10 GCAP Uganda; Learning Brief, 2009.
11 2008/2009
12 MDG 1: Eradicating Extreme Poverty and Hunger: Youth Efforts to Achieve MDGs in Rural Uganda. Uganda Youth Network, July
2010
13 Morrison, D. National Strategies for Successful Youth Financial Inclusion, Accessible at: http://www.yfslink.org
14 Donahue, J., James-Wilson, D. & Stark, E. Microfinance, Youth and Conflict: Central Uganda Case Study. microReport #38, Accessible at: www.equip123.net/docs/e3-UgandaCaseStudy-FINAL.pdf
7
The StarGirl product is implemented utilizing a community-based approach. Community leaders, parent
advocates and school teachers are mobilized prior to the formation of a StarGirl group. By doing this,
FINCA Uganda helps to ensure the long-term sustainability of the groups by obtaining buy-in from key
stakeholders. In addition, FINCA has allocated four staff members and 10 youth mobilizers to implement
StarGirl during the pilot phase.
For girls under 18 years of age, savings accounts are managed by co-signers, mentors or guardians,
because of Ugandan regulatory requirements. StarGirls are trained on how to select a trustworthy mentor with criteria provided by FINCA Uganda Field Officers during training and induction. However, even
though mentors often accompany clients under the age of 18 to branches for transactions, they have
no access to the client’s account details. Mentors are also required to participate in regular trainings
conducted by FINCA Uganda to ensure that they understand their role in the program. Before individuals are officially approved as mentors, FINCA Uganda conducts a thorough background check through
requested documentation, similar to the process of opening up an account.
Figure 1: Steps for Creating a StarGirl Group
FINCA Star Girls Savings Summary Proceess
STEP 1
STEP 2
STEP 3
GROUP FORMATION
ACCOUNT OPENING
CASH COLLECTION
• Group Identification and
Mobilization
• Induction Training Week 1
• A/C Opening at the Branch
• A/C Opening
Documentation from the Field (for
School Girls)
STEP 6
ACCOUNT CLOSURE
• Cash Collection in Group
• Cash Collection by Group
Representative
STEP 5
STEP 4
CASH WITHDRAWAL
CASH DEPOSIT AT THE
BRANCH
• Cash Withdrawal at the Branch
B. FINCA Uganda’s Business Model
Strategic Considerations and Objectives
Serving youth is supported by FINCA Uganda’s
FINCA Uganda is a wholly owned subsidiary of FINCA
mission and also provides the following longInternational, a network of microfinance providers
term benefits:
founded in 1984. FINCA Uganda operates on the same
• Increasedcommunityrelevance
principles and general business model as FINCA Inter• Enhancedinstitutionalbrandandreputation
national. With a mission to support sustainable liveli• Accesstoexpandedadultmarketsthrough
hoods to vulnerable populations in Uganda through
cross-selling
provision of financial services, FINCA Uganda’s social
mission supports working with youth. Additionally,
one of FINCA Uganda’s organizational objectives is to become more widely relevant in communities
where they currently operate. FINCA Uganda sees youth not only as a present client base but also as potential long-term customers. FINCA International has recently become interested in the StarGirl product
and has begun developing a network-wide strategy for serving youth. Though adolescent girls are not
8
necessarily a profit-making market segment for FINCA, serving them is a clear realization of the mission
to target vulnerable groups.
As mentioned in the section above, FINCA Uganda currently offers two products targeted directly to
young people: StarGirl and FINCA Junior. FINCA Junior is marketed to existing adult clients, offering
them the opportunity to open and administer a savings account for a child, often for the payment of
education fees. Launched in 2009, FINCA Junior is now offered in all of FINCA Uganda’s 26 branches. By
contrast, StarGirl is marketed directly to youth, specifically teenage girls. Currently, StarGirl is offered in
four of FINCA’s branches. But by 2013, FINCA Uganda hopes to roll out a number of youth financial products (including StarGirl) to all 26 branches.
Resources Required
A variety of human and financial resources have been committed by FINCA Uganda for the implementation of the StarGirl product. Staff members from a variety of departments including senior management
officials, finance officials, marketing officers, branch managers, field officers and community mobilizers
all currently work on StarGirl. Funding for product operations is provided with profit from operations
as well as income from investments. In addition, as part of their mission, FINCA Uganda provides all
branches with a limited corporate social responsibility budget with which branches can determine how
to spend. Finally, FINCA Uganda partners with different organizations including local schools, communities as well as other organizations such as the Private Educational Development Network (PEDN) to
reduce institutional costs while benefiting from external expertise.
Financial and Social Outcomes
FINCA Uganda’s youth products currently account for a very small percentage of their entire savings
portfolio (0.2 percent for StarGirl and 1.2 percent for FINCA Junior). While FINCA Junior currently covers its implementation costs,15 StarGirl does not. FINCA Uganda hopes to increase revenue from StarGirl by increasing volume (through more accounts and larger savings amounts) through the eventual
roll-out to additional branches. In addition, FINCA Uganda sees StarGirl as contributing to financial
and organizational sustainability on a longer timeframe through the cross-selling of products and the
establishment of youth as long-term customers. However, financial sustainability is not FINCA Uganda’s
only objective. By providing guidance and direction for youth through their products and services,
FINCA Uganda sees itself as also fulfilling a social mission to educate future generations about how to
engage in financial services responsibly. More information about the specific costs of FINCA StarGirl
and current financial sustainability will be provided in “Building Sustainable Business Models for Youth
Financial Services.”
15 Implementation costs for FINCA Junior are lower due to the fact that it is operated solely out of FINCA Uganda branches. Additional costs such as savings group formation and management as well as complementary services are not incurred through
the FINCA Junior product. Furthermore, savings volumes are higher because FINCA Junior is offered at all of FINCA Uganda’s
branches.
9
Case Study 2: Catholic Relief Services
and Enlace
A. Background
1. Operational Context
In 2010, the population of El Salvador was 6.2 million with 33 percent of the total under the age of 15.16
According to UNICEF’s 2011 State of the World’s Children report, Salvadoran youth are often exposed to
increased economic vulnerability because of high rates of domestic violence and broken families. Forty
percent, or 2.4 million, of El Salvador’s population is under the age of 18 and, of these, 43 percent live
with only one parent.17
Youth unemployment is a critical problem in El Salvador, where approximately 33 percent of people aged
20 to 24 are out of work. Furthermore, it is estimated that 25 percent of youth aged 15 to 19 are out of
school and unemployed. Poor youth, in particular, face significant barriers to employment opportunities,
with nearly half of them dropping out of school before completing sixth grade.18 Unemployment has
been linked to increased gang activity in El Salvador, primarily affecting young men between the ages
of 13 and 25. Gang members are often poor and cite social exclusion as a main reason for gang participation. CRS and Enlace have found, through informal conversations with youth, that many potential youth
entrepreneurs fear starting a business because it will attract gang activity.
2. CRS and Enlace’s Youth Products
Enlace currently offers savings
and lending services to youth
between the ages of 12 and 24.
Enlace’s work with youth began
through its community bank
methodology that facilitates
loans to groups of 7 to 25 people
based on group solidarity
guarantees. In community
banking, the group organizes a
board of directors who requests
loans from Enlace. If approved,
money is disbursed to the group
and divided among the members.
The group then collects the
payment for the loan and repays
Enlace. Enlace began offering
mixed community bank groups of
youth and adults in 2006 and
youth-exclusive savings groups in
2010.
CRS and Enlace: A Partnership for Youth
Enlace began partnering with CRS in 1997, when CRS created Enlace.
Although both organizations have different missions and structures, the
partnership has been successful because of each organization’s commitment to working with underserved groups including youth. To ensure
cohesion in the development of their youth financial services, CRS and
Enlace conducted market research together to ensure that both the
financial and social elements of the product would be well understood
and agreed upon by each organization. Since Enlace’s core strength is
financial product delivery, they have been responsible for the design
and roll-out of the loan products while CRS’s role has been the transfer of
technical knowledge to Enlace.
For the purposes of the PLP, SEEP focuses on Enlace’s financial services
as the main point of intervention with clients. However, CRS provides
valuable technical assistance to Enlace and brings a long history of
active community development and economic empowerment work
in El Salvador. CRS’s positive reputation brings prestige and legitimacy
to the youth work, and the partnership with Enlace facilitates access
to financial services that would otherwise be unavailable for poor
entrepreneurs, including youth.
16 Population Reference Bureau. 2011 World Population Factsheet. Accessible at: www.prb.org/pdf11/2011population-
data-sheet_eng.pdf
17 UNICEF, State of the World’s Children. June, 2011. Accessible at: www.unicef.org/.../SOWC_2011_Main_Report_
EN_02242011.pdf
18 La Prensa Grafica El Salvador (August 12, 2010). Ministerio de Economica, Direccion General de Estadistica y Cen-
sos. Situational Diagnosis of Youth Employment in El Salvador.
10
In 2009, Enlace combined its community bank
CRS’s SILC Methodology
methodology with CRS’s savings and internal
lending community (SILC) methodology (please
Savings and internal lending communities (SILC)
see accompanying text box) and adapted the
bring together self-selected groups to learn how
services for young people. Later in 2009, Enlace
to save money, develop leadership skills and make
internal loans within the group. Groups set their own
began organizing and running their own savings
lending and management rules, including interest
groups, with technical support from CRS. The
rates, loan amounts and lending criteria. The savings
groups meet regularly and deposit money into
group organizations operate for approximately one
a lockbox (similar to SILC groups), since Enlace is
year with the support of an external promoter, after
not yet able to mobilize savings. In parallel, Enlace
which they graduate and ideally continue operating
has begun offering loans to youth by incorporatwithout external support.
ing young people into existing loan groups. The
savings groups may also offer internal loans, but
these do not compete with Enlace’s loans, as the amounts are considerably smaller and target a different
client segment. Although Enlace is not yet able to capture the financial value created through these savings groups (since they cannot mobilize savings), the groups allow Enlace to increase their contact with
young people and identify promising entrepreneurs for future investment. In addition, the groups allow
Enlace to deliver informal financial education and skills training, creating more informed future customers for the MFI.
Outside of the youth clients in savings groups, Enlace is also currently providing loans to 1,800 young
people with prior business experience. In an effort to link youth activities, Enlace is now trying to incorporate these youth borrowers into savings groups to act as mentors to the less experienced youth.
Figure 2: Enlace’s Youth Savings and Loan Process and Timeline
STEP 1
• Groupformation
• Inductiontraining
(2 weeks)
STEP 2
(Months1to6)
• Savingsandinformal
financialeducation
STEP 3
(Months6to12)
• Savingsandinternal
loanstogroup
members
STEP 4
(Months6to12)
• Linksestablishedto
Enlaceforpossible
externalloans
STEP 5
(After12months)
• Graduation
• Enlaceendsgroup
monitoring
B. Enlace’s Business Model
Strategic Considerations and Objectives
Enlace’s current activities with youth help them to fulfill a social responsibility mandated in its mission.
Due to the current state of youth unemployment and gang activity in El Salvador, Enlace sees itself as
a positive force that can help to provide youth with viable alternatives. Specifically, Enlace hopes to
impact youth on a social level by:
•
•
•
•
•
•
Promotingyouthsolidaritythroughorganizationalactivities
Developingenterprisingactivitiesforyouthclients
Improvingtheself-esteemofyouth
Developingleadershipcapabilitiesinyouthclients
Improvingyouthclients’qualityoflife
Contributingtotheeradicationofyouthunemploymentbygeneratingnewopportunities
Enlace also sees its work with youth as a way to obtain new clients for future financial activities. As of
2011, Enlace was the only financial institution specifically targeting youth in El Salvador, giving them the
opportunity to develop products with little competition.
11
Resources Required
Additional resources were allocated by Enlace for the implementation of youth initiatives including
increased engagement of offices and employment of new promoters to work specifically with youth. Enlace worked intensively with branch officers, staff members and promoters to refine targets, incentives
and processes for youth activities—all of which required additional staff time and resources. Additional
time, personnel and resources were also required to gain the support of local communities and stakeholders such as school administrators, teachers and local organizations. The partnership between Enlace
and CRS helped to facilitate community sensitization and mobilization, primarily as a result of CRS’s extensive experience in youth work and its reputation in El Salvador. CRS also assisted Enlace with refining
the processes and activities for the youth savings groups and continues to provide technical assistance
to Enlace as they move from a pilot phase to roll-out.
Financial and Social Outcomes
Enlace did not originally envision that their youth products would be immediately financially sustainable, especially for youth under the age of 15. However, Enlace believes that, through incorporation
of youth-specific initiatives with existing Enlace products and services such as community banks and
loans, activities with youth over the age of 15 can eventually become sustainable. Enlace management
hopes for youth products to be profitable within two years, at which point youth loans would be made
more widely available through the branch offices. More information about the specific costs of Enlace’s
youth products and current financial sustainability will be provided in the next section.
12
Building Sustainable Business Models for
Youth Financial Services
Before launching their youth initiatives, CRS-El Salvador, Enlace and FINCA Uganda conducted extensive
market research indicating that youth products would make positive additions to their portfolios by
contributing to long-term social and financial sustainability. The organizations envision that financial
sustainability can be achieved through a combination of product revenue, creation of long-term clients
with financial capabilities and increased goodwill for the organization in the community.
Although FINCA Uganda and Enlace currently evaluate the financial sustainability of their youth
products differently, they both examine input costs compared with financial return over a designated
period of time. In the sections below, both organizations have examined the current and future financial
sustainability of their youth products and share thoughts on how they are working towards achieving
sustainability.
A. FINCA Uganda’s StarGirl Youth Product
Currently, FINCA Uganda’s StarGirl product does not generate a profit or cover operational expenditures, costing approximately three dollars for every dollar mobilized. This is due to a number of factors
including small sizes of client deposits in combination with high implementation costs. Eventually,
FINCA Uganda hopes to reduce the gap between product investment to only four cents for every dollar
mobilized through a number of different ways, including: (1) establishing more mobile banking access
points for youth clients; (2) scaling up to reach more clients; and (3) encouraging youth to save in greater
volume. As StarGirl accounts and volumes increase, FINCA Uganda expects that costs will be easier to
meet. In addition, the longer that StarGirl is offered within FINCA, the greater the amount of savings that
will be realized on operational expenditures:
• Staffingcostswillreduceastrainingandmobilizationactivitiesbecomemoresystematized;
• Standardizedcurriculumwillberolledoutmoreefficiently;and
• Equipment,suchaspointofsale(POS)machines,canbeleveragedtoreducecostsastheybecome
more mainstream within FINCA Uganda.
Currently, StarGirl activities are cross-subsidized within FINCA Uganda, utilizing funding through retained
operational earnings, commercial borrowing and income from investments. In addition, FINCA Uganda
has utilized external funding for the scale up of StarGirl through donors such as the United Nations Capital Development Fund (UNCDF) and The SEEP Network.19 Each branch has a budget of 2.5 million Ugandan
shillings (approximately USD $87520) from FINCA Uganda’s CSR budget and can allocate it as they choose.
To access these funds, branches send proposals to the sales and marketing departments at FINCA Uganda, and allocation decisions are made on an annual basis. The four branches currently piloting StarGirl
have chosen to focus on youth as a way to reach more vulnerable clients and spent approximately 80
percent of their CSR budget on youth activities in 2011.
As a point of contrast, FINCA Uganda’s other youth product, FINCA Junior, currently covers its implementation costs, though it still accounts for a relatively small proportion of FINCA’s entire savings portfolio.21
FINCA Junior is able to recover its costs because overall expenditures are lower than for products like
StarGirl because no specialized staff is required and no complementary services are offered.
19 Through The MasterCard Foundation
20 All numbers were converted using an exchange rate of 2,825.59 UGX for US 1.00 as of October 5, 2011 (source: www.oanda.com)
21 FINCA Junior is only 1.2% of FINCA Uganda’s entire savings portfolio.
13
Table 1: FINCA StarGirl Product Costs
StaffSalaries
SupportStaff(wages)
StaffBenefits
Quantity
Months/
Frequency
Unit Cost ($)
Total ($)
4
12
240.91
11,563.73
2,890.93
10
12
71.40
8,567.67
2,141.92
4
12
83.22
3,994.74
998.69
Per Brance ($) (x4)
Marketing materials
Design&translationofposters
1
100.00
100.00
25.00
Printingofposters
2
569.43
1,138.85
284.71
Design&translationofbrochures
1
100.00
100.00
25.00
Printingofbrochures
2
1,795.88
3,591.77
897.94
3
525.62
6,307
1,576.87
Training & Promotion activities
In-schoolandout-of-schoolsensitisation
events
4
Youthcommunitymobilizationmeetings
4
6
262.81
6,307.49
1,576.87
Communitystakeholdersmeetings
4
12
65.70
3,153.75
788.44
Product Incentives
Savingscard&pocketholders
4
PiggyBanks
400
2.19
3,504.16
876.04
1000
10.95
10,950.50
2,737.63
Inter-communityyouthevents
4
1
2,190.10
8,760.40
2,190.10
CSRactivities
4
1
1,095.05
4,380.20
1,095.05
Monitoring&evaluationactivities
4
6
78.84
Product Costing Totals
1,892.25
473.06
74,313.01
18,578.25
Reaching Sustainability
FINCA Uganda foresees StarGirl becoming financially sustainable in the future but does not currently
have a specific timeframe for this. FINCA estimates that StarGirl will recover more costs through continued roll out to more branches, systematization of implementation processes and establishment of
standard financial education curriculum. However, recognizing that FINCA Junior and StarGirl meet very
different client needs and contribute differently to their mission, FINCA Uganda ultimately plans to calculate sustainability in terms of their entire portfolio of youth products (including future projects), rather
than considering the sustainability of each product individually.
Even though StarGirl is not currently financially sustainable, FINCA Uganda has found that the youth
product has already enhanced its image in communities and increased its profile as a savings institution.
Though FINCA has not calculated the level of financial return for this outcome, StarGirl is expected to
generate a multiplier effect where products can be cross-sold to adult family members. FINCA staff have
heard anecdotally that StarGirl demonstrates to community members that the institution offers a wide
range of services:”We are surprised that FINCA offers credit and savings products, we only knew it for giving
credit to rural women.”22 In addition, FINCA considers such youth products to be investments in long-term
client loyalty, with previously unbanked populations becoming and remaining clients through their early
contact with FINCA.
22 Community leaders in Katwe and Kawempe during a community sensitization workshop/meeting.
14
StarGirl: Enhancing FINCA Uganda’s Reputation in the Community
“It is really a good thing as FINCA is now known for offering services to mainly low-income people to improve their
standard of living. FINCA coming to teach our girls how to save is going to help a lot in the development and empowerment of the young girls within our community in Katwe.”
Felisters Nassaka, Katwe Community Support Mentor
“Youth programs have always been introduced but there has never been any that introduced the youth to financial
institutions in a creative and supported way as FINCA Uganda has done! I will continue to work with all youth (girls
and boys) and encourage them to access various programs as well as FINCA Uganda savings and credit services as it
provides financial education, which is essential in our fight against poverty in our community.”
Steven Mungi, Kawempe Youth Empowerment Scheme Director and Kawempe Community Councilor
B. Enlace’s Youth Products
Enlace estimates that it has cost them $107,444 to form the existing 244 savings groups over a period
of 18 months.23 This translates to approximately $10,744 per branch office and includes salary costs and
incentives for branch staff working on the youth project, training activities for youth, mobilization costs
and toolkits for youth. Transportation and communication costs are included by Enlace as incentives for
youth promoters.
Table 2: Actual Costs for Enlace’s Youth Savings Groups 24
Item
Unit Cost
Months
Quantity
Total
Total Per Branch
$1,700
18
n/a
$30,600.00
$3,060.00
Staff Benefits
24%
18
n/a
$7,344.00
$734.40
Training for Promoters
$150
n/a
10
$1,500.00
$150.00
Incentives for Promoters
$200
18
10
$36,000.00
$3,600.00
Training for Youth
$504
n/a
10
$5,040.00
$504.00
$50
n/a
244
$12,200.00
$1,220.00
$40
n/a
244
$9,760.00
$976.00
$5,000
n/a
1
$5,000.00
$500.00
$107,444.00
$10,744.40
Staff Salaries24
Seed Capital for Youth Savings Groups
Tool Kits
Audit
TOTAL:
(Note: These costs are actual costs for 244 savings groups with 3,821 clients at 10 branches for an 18-month period. Training costs above
include the trainer’s salary, food and materials.)
Enlace does not yet have authorization to take deposits, therefore the savings groups do not currently
generate income for Enlace but function as a way for them to develop relationships with potential youth
loan clients and to screen their financial attitudes and capabilities. Additional revenue from youth activities, in the form of income from youth loans outside of the savings groups, is minimal since the number
of youth receiving these loans as well as the loan size (average of $50 to $75) are both small.25
Reaching Sustainability
Over the past year and a half, Enlace has examined the financial sustainability of their youth products
and has developed the following plan to reach sustainability within the next one to one-and-a-half
23 As of the end of June 2011
24 Staff Salaries include: Project manager ($1,500 per month for 18 months) and Project Assistant ($200 per month for 18 months).
25 As of June 2011, Enlace had provided external loans to 30 youth clients with a net income per loan of $1.38.
15
years through a combination of recruiting more youth clients into savings groups, increasing the number of external loan clients within the saving groups and increasing loan amounts.
The following budget is similar to the budget above but is estimated for 12 months and is based on
the assumption that Enlace will maintain at least 3,000 active youth in their savings groups (or 300 per
branch) and that 900 youth in these savings groups will access external loans with Enlace (30 percent or
60 clients per branch office).
Table 3: Estimated Annual Costs for Enlace’s Youth Savings Groups 26 27
Unit Cost
Months
Quantity
Total
Total Per Branch
Salary: Project Manager
Item
$1,500
12
1
$18,000.00
$1,800.00
Salary: Project Assistant
$200
12
1
$2,400.00
$240.00
Salary: Youth Project Assistant26
$500
12
1
$6,000.00
$600.00
Staff Benefits
24%
12
n/a
$6,336.00
$633.60
Training for Promoters
$150
n/a
10
$1,500.00
$150.00
Incentives for Promoters
$200
12
10
$24,000.00
$2,400.00
Training for Community Youth
Promoters27
Training to Youth Savings Groups
Tool Kits
Audit
3,360.00
n/a
1
$3,360.00
$336.00
$50
n/a
200
$10,000.00
$1,000.00
$40
n/a
200
$8,000.00
$800.00
$5,000
n/a
1
$5,000.00
$500.00
$84,596.00
$8,459.60
TOTAL:
Based on this budget, Enlace estimates that administering savings groups will cost approximately $28
per group member. With 30 percent, or 900 of the youth from savings groups also becoming Enlace
loan clients, the cost of administering the savings groups is calculated at $94 per loan client. In order to
recover this investment, Enlace examined different options for their youth loan products by varying the
average loan amount. If youth clients take loans averaging the current amount of $50, the investment
in creating and running the savings groups would take over 68 months to recover. However, as the loan
size increases, the interest earned28 increases and the cost of administering the loan decreases.
Table 4: Youth Loan Scenarios
Loan per youth
Monthly interest rate (%)
CASE 1
CASE 2
CASE 3
CASE 4
CASE 5
$50.00
$100.00
$200.00
$300.00
$400.00
4.33%
4.33%
4.33%
4.33%
4.33%
Operational cost (% of the loan amount)
-0.92%
-0.92%
-0.92%
-0.92%
-0.92%
Financial cost (% of the loan amount)
-0.67%
-0.67%
-0.67%
-0.67%
-0.67%
$2.17
$4.33
$8.67
$13.00
$17.33
-$0.79
-$1.58
-$3.17
-$4.75
-$6.33
$1.38
$2.75
$5.50
$8.25
$11.00
68.4 mo
34.2 mo
17.1 mo
11.4 mo
8.5 mo
Income from interest
Total cost
Net Income
Investment recovery time for cost per
client ($94)
26 This is a new position in Enlace.
27 This is a new activity for Enlace.
28 Interest rates for youth clients are comparable to annual rates charged to Enlace’s adult clients.
16
The optimum loan size was determined by Enlace to be $300, an amount large enough to provide clients with sufficient loan capital but not so large that it was likely to create dangerous levels of indebtedness. The clients who would be accessing this larger loan amount would be older youth, between the
ages of 18 and 24, who already have businesses or entrepreneurial experience. Enlace feels comfortable
piloting this larger loan amount based on market research conducted in 2010 that showed that there
was demand for larger loan amounts for youth fitting this profile. By adjusting their loan strategy and
target group, in just over 11 months, Enlace would recover its investment in the savings groups. In addition, Enlace’s new youth loan clients would gain financial capabilities and an established relationship
with the financial institution through involvement in the savings groups.
However, to increase the average amount of clients accessing loans within the savings groups, Enlace
determined that the current savings group structure must be strengthened by including more young
people with entrepreneurial skills and business experience. Enlace has found that some youth who are
currently members of Enlace’s community banks are interested in forming savings groups. Linking current youth loan clients with savings groups is a key element of Enlace’s strategy for scaling up the loan
component to cover the costs of the savings groups.
In addition to adjusting their youth loan product and methodology, Enlace is also working to decrease
the cost of mobilizing and administering savings groups. In order to do this, Enlace has determined
that it must complement the actions of the savings group promoters (who currently receive a salary
plus incentives) with the support of community leaders (who currently work on a voluntary basis). One
way that this can be done is to create an incentive plan for community leaders. Having incentives for
promoters and community leaders could result in an increase in the savings group branch targets while
lowering the cost of mobilization.
Enlace’s strategy for growing the youth loan portfolio will involve a combination of the steps in the
diagram below. First, at least 6 percent of the youth currently in savings groups have been identified as
possible loan clients and will be assessed by loan officers for eligibility (Step 1). In addition, current loan
clients who are under the age of 25 will be linked to savings groups or encouraged to form new groups
(Step 2). At the same time, eligible youth with existing businesses will be linked to savings groups
when they access loans (Step 3). By modifying the profile of the savings groups, Enlace will create a link
between the savings group methodology and its youth credit activities, which will streamline Enlace’s
youth products while generating more revenue for the organization.
Enlace will continue to work with youth in existing savings groups who do not qualify for loans. Although formal training will not be provided to these groups after graduation (after one year according
to the SILC methodology), Enlace will continue to monitor their progress through community volunteers and clients. Additionally, since many parents of the savings group members are involved in Enlace’s community banks, Enlace will encourage youth in savings groups to consider joining their neighborhood community banks (typically made up of parents, friends and neighbors) to apply for loans in
smaller amounts. This way, youth can continue to access smaller loans but without increased cost for
Enlace. It is important to note that Enlace is currently piloting these adjustments to their youth products
and plans to monitor results closely before full roll-out.
17
Figure 3: Steps to Achieve Financial Sustainability 29
Step 1
Step 2
Step 3
Client Segment: Youth savings groups with no links to
loans/credit
Client Segment: Current
youth loan clients29 without
links to the savings groups
Client Segment: New youth
clients eligible for loans who
can form new savings groups
Total number of youth (actual):
3,821
Total number of youth (actual):
1,746
Total number of youth (target):
2,400
Less than 12
years old
Age
Between 12 and
24 years old
Age
Between 18 and
24 years old
Age
Occupation
Own business
Occupation
Between 18 and
24 years old
Older than 24
years old
Student
Occupation
Employed
Own business
Engage in business activities
▼
▼
▼
Link eligible clients to loans
Encourage to become part of
youth savings groups
Link to loans/credit and youth
savings groups
29 These loan clients are currently participating in Enlace’s Community Banks and Solidarity Groups.
18
Integrating Youth Products into Sustainable
Business Models: Addressing the Six
Considerations
Six key considerations that should be taken into account for the attainment of financially sustainable youth products were examined earlier in this document. Using the experiences of FINCA Uganda
and Enlace, strategies to address these six considerations will now be evaluated as ways that both
organizations have attempted to address the issue of business model compatibility and sustainable
youth products.
CLIENT-LEVEL CONSIDERATIONS:
1. Segmentation
Both Enlace and FINCA have designed their youth financial products with the issue of segmentation in
mind. In market research conducted prior to the development of the StarGirl product, FINCA Uganda
found that the Ugandan youth market is subdivided into different sub-segments with varied aspirations,
savings practices, preferences and needs. As a result, FINCA Uganda has already developed two products (FINCA Junior and FINCA StarGirl) and is in the process of developing two to three more to respond
to market demand. This has initially cost them more investment up front but will hopefully engage
youth through different life stages to become long-term customers of the organization.
Enlace targets its youth services (savings groups and loans) to different client segments based on age
and occupation. For younger youth in school and not eligible for loans, Enlace engages them in savings
groups and provides financial education training to develop positive financial behaviors. For older youth
who already have loans or are eligible to receive them, Enlace provides skills training (through partnerships) and will also begin linking these clients with savings groups. Although Enlace provides different
services for different youth segments, they have also found that mixing different segments in a group
setting can have positive outcomes since older youth can teach younger youth important entrepreneurial and business skills.
2. Cost of acquiring and retaining clients
Both FINCA Uganda and Enlace depend on partnerships to mitigate against the high cost of mobilizing
youth clients. For FINCA, partnerships with community development organizations help to increase outreach to youth while reducing administrative costs for youth group formation and mobilization. Partner
organizations also increase community buy-in and are key contributors to the StarGirl financial education curriculum. FINCA Uganda plans to partner with the Ugandan NGO Private Education Development
Network (PEDN), using the Aflatoun financial education model to scale up the StarGirl product to their
in-school market segment.
Whereas FINCA cultivates a range of partnerships with NGOs and community organizations, Enlace
has one main partnership with CRS. The partnership between CRS and Enlace is key to integrating
youth in the business model of both organizations by allowing each organization to focus on their core
strengths, with Enlace providing financial services and CRS bringing experience with youth and a reputation for economically and socially empowering communities.
19
PRODUCT-LEVEL CONSIDERATIONS:
3. Product design and features
Group-based products: To make mobilization of youth depositors cost effective and reduce the transaction costs of small and variable deposits, FINCA Uganda utilizes a group methodology. At each StarGirl meeting, money is collected, and mentors and group leaders take the deposits to a FINCA branch,
accompanied by the youth client. To realize additional cost savings, FINCA has proposed streamlining its
youth accounts through the use of Point of Sale (POS) technology and an agency model near schools or
youth centers. It is currently awaiting approval from the Central Bank of Uganda.
Enlace’s business model is also based on working with groups. Group-based products reduce delivery
costs and allow the organization to have greater market visibility. The savings group methodology has
also become an important tool for Enlace to build relationships with youth clients before disbursing
loans. Screening and preparing youth for entrepreneurship is resource-intensive, but the longer term
relationships that Enlace staff form with youth through the savings groups allow them to assess youth
informally, identifying promising potential entrepreneurs in a low-risk environment. The group methodology is extended to Enlace’s loan products, and youth who receive loans are currently incorporated into
mixed-age groups through the Solidarity Groups and Community Bank products where they receive
informal mentorship from experienced business people.
Pilots: The pilot is a critical part of the scale up process, identifying successful practices and potential
problems while conserving resources. A pilot can help to save costs in the long run by allowing an
organization to test out methodologies and make adjustments on a smaller level before scaling up.
Both FINCA Uganda and Enlace engaged in pilot testing before full roll-out of their youth products and
services. The specific objectives of Enlace’s pilot were: (1) to understand the costs and financial returns
that the product was likely to generate; (2) to test delivery mechanisms; and (3) to determine the most
effective division of labor between CRS, Enlace and local partners. FINCA Uganda refined a number of
components of their StarGirl product based on results from the pilot. Specifically, they adjusted the
required qualifications of Field Officers to include more of a social/youth background and are also currently in conversations with potential partners to assist with their financial education activities.
4. Complementary activities
Complementary services such as financial education and skills training are activities supported by the
business models of both organizations. For Enlace’s clients, complementary training focuses on bookkeeping, basic financial administration and group leadership to facilitate effective management of
savings groups, which are part of the MFI’s long-term growth strategy. CRS delivers additional financial
education, mainly focusing on the value of savings and how to set savings goals.
FINCA Uganda provides a range of complementary services for its StarGirl clients including financial
education and life skills education and training. The financial education material teaches the youth in
the savings groups how to manage their money and how to organize business activities to increase
their savings, such as raffles and sales activities. Life skills training can encompass a variety of topics
(depending on the interest of the clients) including social issues, health and skills training for income
generating activities. For both organizations, providing complementary services in groups that already
meet for financial activities reduces the cost and time involved in providing these core activities. In addition, groups can build on the knowledge and skills of group members, engaging in peer-to-peer learning. Although complementary services often cost an organization more in the short term, they provide
essential skills to youth clients, ultimately making them better long-term clients.
20
INSTITUTIONAL CONSIDERATIONS:
5. Timeframe
Both FINCA and Enlace consider youth a key future market for their adult products and have built their
youth products around long-term retention. Both organizations provide an educational component,
teaching the new clients about services available to them and how to best utilize them. In addition, the
products provide an element of mentorship on both business skills and financial capabilities that will
serve youth in the future. Finally, youth are exposed to realistic financial products (i.e., products with
market-appropriate terms and conditions) to facilitate long-term relationships with the institutions.
While FINCA Uganda does not expect StarGirl to be financially sustainable as a stand-alone product, it is
seen as increasing the institution’s reputation in the community and prepares adolescent girls, through
training and financial experience, to be valuable adult clients. Enlace, on the other hand, is planning to
modify its youth services to move towards financial sustainability within a minimum of 12 months.
6. Scale up
Technology: FINCA Uganda is currently working to develop and refine technologies that reduce
the cost of client outreach and transactions. Currently, authorized officers can carry out transactions
remotely with Point of Sale (POS) machines. Though these are not yet used for reaching youth clients,
such tools are currently being rolled out with adult clients and their applicability to youth clients—
particularly those 18 and over—is being investigated. FINCA has also signed an agreement with MTN, a
mobile money provider, to enhance account access options. This will not only reduce costs to FINCA but
also shorten the distance that youth must travel to access services.
Regulatory change for wider outreach: Although Enlace cannot currently mobilize savings, it plans
to transform into a deposit-taking institution in 2013. In the meantime, informal youth savings groups
allow the MFI to develop a culture of savings among future deposit clients, preparation that will be vital
to their transformation process. Client relationships based on savings require significant trust from the
client, whereas credit requires institutions to place trust in their clients.
21
Conclusions and Lessons Learned
Traditionally, youth financial services have not been fully incorporated into many organizational business models due to some key differences between youth products and traditional financial products
including:
•
•
•
•
•
•
Timeframeforfinancialsustainability
Productdesignandfeatures
Mobilizationcosts
Complementaryactivities
Segmentation
Scaleup
Youth financial products do not typically generate a financial return in the short term, are designed with
unique product features to make them relevant to a highly segmented client group and often cost more
to implement due to an increased number of stakeholders and the addition of complementary activities. However, from Enlace and FINCA Uganda’s experiences, it is clear that there is a place for youth
financial services in a traditional business model as long as organizations recognize and discuss these
considerations early in the product development process.
The importance of business model integration and financial sustainability are especially important prior
to the scale up process since scale up requires additional commitments of resources (both human and
financial) and buy-in from key stakeholders associated with the financial service provider. Organizations
should closely evaluate how the unique characteristics of youth products in their current state as well
as at projected scale up levels fit into their business model by looking closely at their mission, resources
and overall financially sustainability—in addition to market demand. Particularly the definition of sustainability should be closely evaluated by financial service providers working with youth to address the
longer time period in which it usually takes youth products to recover organizational input costs.
In order to effectively integrate youth financial products into a sustainable business model, the following key lessons learned should be considered:
• Althoughyouthproductsmightnotbefinanciallysustainableintheshort-term,theycancontribute to an organization’s long-term scale-up strategy.
Youth financial products can create both quantifiable and unquantifiable value for an organization.
As demonstrated by Enlace’s sustainability exercise, youth products can be financially sustainable and
generate revenue for the organization. However, the timeframe in which sustainability occurs may be
longer than for conventional financial products due to the unique characteristics of both youth clients
and youth products. Youth products can also create value and ensure long-term sustainability for an
organization by engaging lifelong clients at an early age, increasing visibility and securing a positive
reputation of the financial provider in the community.
• Conduct market research to ensure product usage and growth possibilities.
Market research will help institutions determine how to segment the target population, what product
features are necessary to attract clients, how to market the product and what pricing is appropriate. This is especially important for business planning and scaling up. In the case of both FINCA and
Enlace, market research led them to create group-based youth products that not only benefited them
through cost savings but allowed the integration of essential complementary activities such as financial education, life skills and business training.
22
Market research also led both organizations to the creation of appropriate financial products for
different groups of youth. FINCA’s market research led to further segmentation of the youth market
into distinct products, each of which addresses different client needs and aspirations. Enlace’s market
research revealed that most youth clients found out about savings and loan products from friends
and family, so their marketing strategy shifted to maximize word-of-mouth publicity. Ensuring that
the financial products that will be developed are not only appropriate, but also scalable, can help
organizations look at long-term sustainability more clearly.
• Engageinpartnershipstolowermobilizationandimplementationcostsforscaleup.
Since youth products can cost more to start-up as well as to implement, organizations should look
into the possibility of engaging in strategic partnerships to assist with project activities. Partnerships
can be particularly effective for scaling up youth services due to the addition of complementary
services (including financial and social education and life and business skills training) and increased
number of stakeholders typically associated with a youth financial product. FINCA Uganda and
Enlace’s partnerships have allowed both organizations to concentrate on their strengths—financial
service provision—while also offering essential components to round out their comprehensive youth
products.
• Althoughcomplementaryservicesrequireinitialfinancialandhumanresources,theycanpositively impact a youth product’s ultimate sustainability.
Offering additional services, such as financial education, will add to the per-client cost of a youth
financial product. However, such components may be critical for the product’s short- and long-term
success. Enlace’s financial training to participants is critical to the success of the savings groups: the
bookkeeping and budgeting support allows youth to run the groups effectively with less and less
supervision from staff. FINCA leverages partnerships to reduce the cost of providing complementary
services, delegating responsibility for administration and mobilization to organizations for which
training is a core competency.
Scale up should be an active and deliberate process that is effectively represented in an organization’s
business model and examined through the lens of financial sustainability. Although FINCA Uganda and
Enlace have different definitions and approaches to sustainable scale up of their youth financial services,
they are examining these issues in relation to their business models and missions. Since both organizations are currently in the initial stages of scale up, further research will be needed to better understand
the relationship between youth financial products, sustainability and scale up. However, based on the
experiences of FINCA Uganda and Enlace, youth financial services can potentially work within a sustainable business model.
23
DOCUMENT CLÉ Global Employment Trends for Youth: 2011 update
Global EmploymEnt
trEnds for youth:
2011 updatE
+0.1
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October 2011
DoCuMeNT CLé GLoBaL eMPLoYMeNT TreNDs For YouTh: 2011 uPDaTe
Global Employment Trends for Youth: 2011 update
In August 2010, the ILO published the Global Employment Trends for Youth: Special issue on
the impact of the global economic crisis on youth [GET Youth 2010]. The report presented an analysis of the latest available world and regional aggregates of key labour market indicators for young
people aged 15 to 24 years, with a specific focus on how young people fared in the face of the recent global economic crisis. It highlighted the following trends:
• The crisis led to a substantial increase in youth unemployment rates, reversing earlier favorable trends over the past decade. At the peak of the crisis period in 2009, the global youth unemployment rate saw its largest annual increase on record. The youth unemployment rate
rose from 11.8 to 12.7 per cent between 2008 and 2009, marking the largest annual increase
over the 20 years of available global estimates and reversing the pre-crisis trend of declining
youth unemployment rates since 2002.
• That the global youth unemployment rate increased to a greater degree than the adult unemployment rate supported the classic premise that youth are more vulnerable to economic shocks. Young people are the “first out” and “last in” during times of economic recession.
• The report had predicted a longer recovery for youth than adults in the labour market. The
global youth unemployment numbers and rates were expected to decline only in 2011 whereas the adult unemployment rate was predicted to decline one year prior in 2010.
One year later, with an environment of growing uncertainty in the economic recovery and stalled
recovery in the job market, the ILO now takes the opportunity to revisit the much publicized youth
labour market figures to assess where young men and women currently stand. Are prospects for
youth employment better or worse than predicted in the GET Youth 2010? What are the latest figures? What has changed since the report was released, where and why? These are some of the questions that will be examined in the present update.1
Youth jobs crisis confirmed in both developed and developing economies…
In the current context of economic instability, young men and women face increasing uncertainty in their hopes of finding a decent job. There is no doubt that the global economic crisis has further exposed the fragility of youth in the labour market. At the end of 2010, there were an estimated 75.1 million young people in the world struggling to find work – 4.6 million more than in 2007.
Between 2008 and 2009, the number of unemployed youth increased by an unprecedented 4.5 million. This remarkable increase is better visualized when compared to the average increase of the
pre-crisis period (1997-2007) of less than 100,000 persons per year. The youth unemployment rate
also rose sharply during the economic crisis – from 11.6 to 12.7 per cent – and has shown little improvement since its peak in 2010. Only in 2011 is the youth unemployment rate projected to show
a minimal decrease to 12.6 per cent. (See figure 1 and table 1.)
… but the highest price of the crisis was paid by youth in developed economies.
The absolute number of young jobseekers fell since its peak in 2009, albeit only marginally
(600,000 youth), and not enough to bring the youth unemployment rate down. The youth unemployment rate remained unchanged at 12.7 per cent in 2009 and 2010. If we look at the numbers at
the regional level, however, young people in certain regions have suffered disproportionately when
it comes to their prospects of being absorbed into a distressed labour market.
1
This update is based on the latest global and regional estimates from the ILO, Trends Econometric Models, September 2011, and country-level data from the ILO: Key Indicators of the Labour Market, 7th Edition (Geneva, 2011).
1
Figure 1. Global youth unemployment and unemployment rate, 1991–2011
13.2
78
12.5
74
12.4
12.5
12.0
11.8
74.6
71.3
70.5
75.8
75.3
75.1
11.6
78.6
77.7
77.0
77.0
74.5
73.4
72.8
71.2
70.0
69.6
69.7
13.0
11.5
11.0
Youth unemployment (millions)
2011p
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
10.5
1995
67.1
1994
60
1991
62
67.3
64
12.9 12.9
12.2
11.1
66.7
66
12.1
13.0
12.7 12.7 12.6
11.4 11.5
68
1993
70
12.0
12.7
12.9
11.7
1992
72
70.5
Youth unemployment (millions)
76
12.8
13.5
Youth unemployment rate (%)
80
10.0
p = projection.
Source: ILO, Trends Econometric Models, September 2011.
The specter of youth unemployment has continued to worsen in the Developed Economies & European Union, where young people paid the highest price over the course of the crisis. Youth unemployment numbers and rates were higher in 2010 than any time since measurement began in 1991.
Not only did the region show the largest jump, by far, in youth unemployment rates between 2008 and
2010 (4.6 percentage points), but it is also one of only three regions where the youth unemployment
rate continued to creep up over the period 2009-10 (0.6 percentage point increase in the Developed
Economies & European Union, 1.1 point increase in South Asia and 0.2 point increase in the Middle
East). (See figure 2 and table 2.) Young males have been affected more than young women during
the crisis period in the region: the youth male unemployment rate increased by 4.9 percentage points
between 1998 and 2008, compared to 1.0 point for young females. (See table 4.)
More young people face lengthy periods of job search …
In most developed economies, the long-term unemployment rates of youth surpassed those of
adults, by far. In Italy, for example, the gap between the youth and adult long-term unemployment
rates was extremely large, with young people three times more likely to be unemployed for at least
one year compared to adults. Substantial differences between youth and adults (ratio greater than
2.0) were also seen in Greece, Hungary, Slovakia and the United Kingdom. (See figure 3.)
… leading some to give up on the job search altogether
There has been a clear increase in inactivity among youth in the crisis years. Globally, the youth
labour force participation rate decreased from 49.4 per cent in 2009 to 48.8 per cent, with the largest regional decreases in the Developed Economies & European Union and South Asia (see table
3). In 56 countries for which comparable monthly/quarterly data were available, the youth labour
force expanded by far less during the crisis than would be expected: across the 56 countries, there
were 2.6 million fewer youth in the labour market in 2010 than expected based on longer-term (precrisis) trends. This figure implies that growing frustration over unemployment and underemployment has pushed a large cohort of discouraged youth to drop out of the labour market altogether.
2
Figure 2. Youth unemployment rate by region, 1991–2011
35.0
30.0


25.0

20.0
15.0




Developed Economies & European Union
East Asia
South Asia
Middle East
North Africa
2011p
2010
2009
2008
2007
2006
2005
2004
2003
2002
1999
1998
1997
1996
1995
1994
1993
1992
1991
5.0
2001


2000
10.0
Central & South Eastern Europe (non EU) & CIS
South-East Asia & the Pacific
Latin America & the Caribbean
Sub-Saharan Africa
Note: Peaks years are marked in black squares.
p = projection.
Source: ILO, Trends Econometric Models, September 2011.
Figure 3. Youth-to-adult ratio of unemployment rate, long-term unemployment rate, part-time employment rate and time-related
underemployment rate, selected European countries, 2010
5.0
4.5
4.0
3.5
Ratio
3.0
2.5
2.0
1.5
1.0
0.5
Part-time employment rate
Long-term unemployment rate
Time-related underemployment rate
Unemployment rate
ed
Kin
gd
om
en
ed
Sw
Un
it
Sp
ain
kia
va
l
ga
Slo
rtu
d
lan
Po
ay
Po
rw
nd
s
No
rla
Ne
the
Ita
ly
nc
e
Ge
rm
an
y
Gr
ee
ce
Hu
ng
ary
Ire
lan
d
Fra
d
lan
rk
Fin
lic
ma
De
n
hR
ep
ub
um
lgi
Be
Cz
ec
Au
str
ia
0
Source: ILO, Key Indicators of the Labour Market, 7th Edition, various tables (Geneva 2011). See table 6 for the same indicators for youth, by country.
3
Take the case of Ireland: in 2010, the youth unemployment rate in Ireland stood at an alarming 27.5 per cent, up sharply from 9.0 per cent in 2007. Yet even the scale of the unemployment increase understates the extent of the problem: youth participation declined sharply in the country
during the crisis and there is a massive gap now between the current youth labour force count and
the expected youth labour force based on pre-crisis trends. This means many young people are either “hiding out” in the education system rather than face the job search or are idly waiting at home
for prospects to improve before taking up an active job search. Had these youth been instead looking for work, the “actual” youth unemployment rate in Ireland could be as much as 19.3 percentage
points higher than the official rate. In Austria and Hong Kong, China the youth unemployment rate
could be as much as double the official rate if all of the additional inactive youth are really holding out hope for future employment. (See figure 4.)
… and others to take up whatever work they can find.
For many youth who did manage to find work, the job found is less than ideal. Part-time employment rates increased for youth in all developed economies but Germany and Poland between
2007 and 2010. An increase in part-time employment among young people is not in itself a negative trend; an increasing number of young people combine work with study as a means of gaining
experience and making contacts in the world of work in order to smooth the future transition to
full-time employment upon graduation. But the sheer magnitude of the increase in part-time employment among youth in European countries since the onset of the crisis – between 2007 and 2010,
the part-time employment rate of youth increased by 9.2 percentage points in Iceland, 17.0 points
in Ireland, 10.5 points in Luxembourg, 10.1 points in Slovenia, 8.8 points in Spain and 5.2 points in
the United Kingdom – is a sufficient hint that part-time work is being taken up as an only available option for many young men and women. By the end of 2010, as much as half of working youth
were in part-time employment in Canada, Denmark, the Netherlands and Norway, while in Australia, Iceland, Ireland, Slovenia, Sweden and the United Kingdom, the share was 1 in 3 (see table 6).
This involuntary nature of part-time work is further confirmed by the increase in the time-related underemployment rate in many countries over the course of the economic crisis. This is a situa-
Figure 4. Official youth unemployment rates and adjusted rates accounting for reduced labour force participation, 2010
60.0
50.0
40.0
30.0
20.0
10.0
0
ia
str
Au
n
pa
Ja
o
xic
Me
y
an
rm
Ge
lic
e
,R
a
ore
b
pu
K
of
lia
tra
s
Au
o
gK
n
Ho
,
ng
ina
Ch
da
na
Ca
w
Ne
Official youth unemployment rate (%)
nd
ala
Ze
co
roc
Mo
tes
ta
i
S
ted
Un
ite
Un
om
gd
in
dK
i
Sr
a
nk
La
d
lan
Fin
Adjusted youth unemployment rate (%)
Source: ILO calculations based on official national data.
4
en
ed
Sw
d
lan
Ire
ain
Sp
tion in which a person would like to work additional hours than they are currently working (for instance, a person who is working part time because they could not find full time work). In 2009, the
youth underemployed rate was greater than the adult rate for all European Union countries but
Austria and Germany. Youth were especially prone to time-related underemployment vis-à-vis the
total working population (ratio greater than 2.0) in Finland and Sweden. (See figure 3.)
Still, the majority of the world’s youth are in developing economies, where some
young men and women have very little chance of ever finding work …
Over the entire twenty year span for which data exist, approximately 1 in 4 youth in the labour market have been unemployed in the regions of the Middle East and North Africa, and this is
despite progress made on the education front for both girls and boys. There are deep-seated structural issues in these regions that result in the world’s highest youth unemployment rates as well as
severe underdevelopment in the productive potential of the economies.2 The collective frustration
of a generation of youth that was granted the opportunity to gain an education but not given the
same opportunity to gain decent employment was certainly a contributing factor behind mobilizing youth in support of the political protest movements in Bahrain, Egypt, Libyan Arab Jamahiriya, Syrian Arab Republic and Tunisia. Consequently, promoting opportunities for decent employment for youth remains firmly fixed among the priority of the interim governments.
... while others cannot escape the trap of working poverty.
In low-income developing economies, young people have always been reared in an environment
of weak aggregate demand and minimal job creation in the formal sector. In such an economic environment, and with little or no social safety nets to fall back on, few young people can afford to
undertake a lengthy job search. For this reason, the unemployment rate does not capture the full
extent of difficulties facing young people in developing economies. In fact, if youth unemployment
were examined alone, one might wrongly guess that young people in South Asia and sub-Saharan
Africa, with youth unemployment rates of “only” 9.9 and 12.5 per cent in 2010, respectively, are doing well compared to their counterparts in the Developed Economies & European Union, where
the youth unemployment rate was 17.9 per cent (see figure 2 and table 4).
However, this is not the case. The high employment-to-population ratios of youth in the poorest regions reflect the fact that the poor must work. But working does not mean having a decent
job. Rather, the majority of young people in South Asia and sub-Saharan Africa and other low-income regions are trying to make a living at whatever job they can find, most often working long
hours under poor conditions in the informal economy. There are by far more young people around
the world that are stuck in circumstances of working poverty than are without work and looking
for work. According to the latest ILO estimates on working poverty, young people make up a disproportionately large share of the world’s working poor. In the 52 countries with available data,
youth accounted for 23.5 per cent of the total working poor, compared with only 18.6 per cent of
non-poor workers.3
Consequences? Continuing uncertainty for young men and women
and growing discontent…
The ILO projects a slight decline in youth unemployment to 74.6 million in 2011 (from 75.1 million in 2010) and a miniscule decline in the youth unemployment rate from 12.7 to 12.6 per cent.
However, heightened uncertainty in economic growth, coupled with the greater sensitivity of youth
See GET Youth 2010, section 2.2 for more information.
See ILO: Key Indicators of the Labour Market, 7th Edition (Geneva, 2011), Chapter 1, section A for more information on the working poor.
2
3
5
rates to the business cycle, means the recovery for young people is highly uncertain. This could
mean many more difficult years ahead for young people.
The GET Youth 2010 warned of the possibility of “scarring”, whereby the bad luck of the generation entering the labour market in the years of the Great Recession brings not only current discomfort (from unemployment, underemployment, and the stress and social hazards associated with
joblessness and prolonged inactivity), but also possible longer term consequences in terms of lower
future wages and distrust of the political and economic system. It is exactly the latter consequence
that has come to play as one aspect of the Arab Spring, as mentioned above.
And it is not just the Middle East where young people are voicing their discontent. “Los indignados” in Spain spent much of the summer of 2011 peacefully protesting against high youth unemployment (an incredible 41.6 per cent in 2010). Discontented youth have also engaged in protests in
other countries, notably Greece, Italy and the United Kingdom, with at times violent outcomes. In
some countries, youth are protesting with their feet. A recent report of the National Youth Council
of Ireland noted that the number of people under 25 emigrating increased from 15,600 in 2004 to
30,000 in 2009.4 Increased crime rates in the some countries, increased drug use, moving back home
with the parents, depression – all of these are common consequences for a generation of youth that,
at best, has become disheartened about the future, and, at worst, has become angry and violent.
… while governments struggle to find innovative solutions to ease the jobs crisis
Governments are not closing their eyes to the dangers. Most are actively searching for solutions
to stimulating job growth and effectively investing in youth. Interventions tend to focus on the following areas:5
– Addressing skills mismatches: programmes that aim to offset the mismatch of technical skills
among youth, such as: vocational training programmes; re-training of unemployed or discouraged youth and youth; workplace training schemes; the creation or improvement of apprenticeships systems; entrepreneurship training programmes; soft and life skills training programmes for disadvantaged youth; linking employers with educational institutions.
– Addressing inadequate job matching: programmes to bring relevant information about the labour market and access to networks for those who seek work; for example, development of
public employment services or subsidizing private employment services.
– Addressing poor signalling: programmes to ensure that first-time jobseekers can effectively
signal their acquired skills to employers; for example, skills certification systems.
– Supporting strong labour market information systems: support in the areas of data collection,
tabulation, analysis and dissemination to national statistical offices and other producers of
LMI, and in strengthening institutional relationships between producers and users of LMI
within national labour market information and analysis systems.
– Addressing slow job growth barriers: programmes that aim to boost job creation, especially for young people; public works programmes and tax cut incentives for business that hire
long-term unemployed are examples.
– Financial and macroeconomic policies: Ultimately, job growth will not come from labour market policies alone. Additional measures are needed to remove the obstacles to growth, such
as: accelerating the repair of the financial sector balance sheets, including bank restructuring
4
National Youth Council: “Youth Unemployment in Ireland: The Forgotten Generation” (Dublin, January 2011);
http://www.youth.ie/sites/youth.ie/files/Youth_Unemployment_in_Ireland_web.pdf.
For an evaluation of lessons learned in youth employment programmes, see GET Youth 2010, chapter 4. Additionally, readers might be interested in Annex 2 of the document, which provides an inventory of crisis response interventions directly affecting youth employment, by country.
5
6
and recapitalization to relaunch credit to small and medium sized firms; reducing the instability in the euro area; reducing the inventories of non-performing mortgages in the US financial institutions and reactivation of housing markets; and real progress in global demand rebalancing based on effective measures by the G20. Addressing these various macroeconomic
and financial policy challenges is essential for paving the way to stronger output and employment growth.
… and respond to pressure to prioritize youth employment.
In the GET Youth 2010, the ILO warned against pulling back too soon on the active labour market policies and programmes that had been set in place or scaled up in reaction to the economic
crisis. If young people, one of the population groups where recovery in the labour market is known
to lag, are to benefit, it is not enough to give the economy a little boost and then step back and let
the recovery take its own course to eventually absorb the bulk of young jobseekers. Such an approach might have worked if the current recession was not proving to be as deep and structurally
rooted as it is. The reality now is that short term fixes are not enough. Sustained support of young
people, through expansion of the social protection system, long term investment in education and
training, hiring subsidies to promote employment of young people, employment intensive investment, sectoral policy, etc. is needed now more than ever. While this is challenging for governments
to deliver in light of the current budget constraints and high debt levels, a good balance must be
found between these urgent investment and social needs and the medium term-fiscal consolidation
and long-term debt sustainability imperatives. Box 1 describes, in brief, certain policy priorities that
could help prevent the current youth jobs crisis from becoming structural.
Political pressure to prevent the disheartening of a “lost generation” is likely to increase over
the short term and governments may be forced to shift priorities. Ideally, non-State actors, such as
the private sector, trade unions and employers’ organizations, would also play more of an active
role in addressing the youth employment challenge. Increasingly, enterprises are recognizing that
investing in youth makes perfect business sense. Many companies have gotten involved by setting
up training or mentoring programmes that target under-privileged youth, for example. Others open
their doors to apprentices or interns, thus giving them a chance to build up work experience and
establish networks that could lead to future employment. Increasingly, enterprises or foundations
engage in public-private-partnerships around specific topics where they can hope to contribute to
future development.
7
Box 1. Recommended policy measures for promoting youth employment
Many governments are actively engaged in finding solutions, although the severity of the situation
of young people in the labour market requires more attention and policy action. The following actions
could be considered as a basis for tailoring youth employment interventions to the national situation:
Develop an integrated strategy for growth and job creation to ensure long-term, sustained and
concerted action for the promotion of decent work for young people. Assigning priority to youth employment requires a coherent policy framework, with measurable targets and achievable outcomes, that
addresses youth employment in national development strategies and employment policies.
Establish broad-based partnerships to turn youth employment commitment into reality. Partnerships
among governments, employer organizations, trade unions and other organizations can be instrumental
in determining the most appropriate action to be taken at national and local levels for the promotion
of decent work for young people. Action plans on youth employment can be used as a tool for the
conversion of youth employment priorities into concrete action and to strengthen the coordination of
youth employment interventions.
Improve the quality of jobs and the competitiveness of enterprises with a view to increasing the
number of jobs in productive sectors and ensuring job quality for the many young people who are currently engaged in precarious jobs, especially in the informal economy. Together with labour legislation,
these measures can reduce labour market segmentation based on the type of contract and job and can
help young people move to decent jobs.
Invest in the quality of education and training and improve its relevance to labour market needs.
Education and training programmes that equip young people with the skills required by the labour
market are an important element in facilitating the transition of young people to decent work. These
programmes should be based on broad skills that are related to occupational needs and are recognized
by enterprises, and should include work experience components. Policy coherence and more effective
coordination across education and training systems and labour market institutions should be pursued
at all levels, including between Ministries of Education and of Labour, as well as public employment
services, private employment agencies and education and training providers.
Enhance the design and increase funding of active labour market policies to support the implementation of national youth employment priorities. Active labour market policies and programmes (ALMPs)
programmes should offer a comprehensive package of services with a view to facilitating the transition
of youth to decent work. Standard types of ALMPs based on single measures are unlikely to work for
discouraged youth or for young workers engaged in the informal economy, especially during crisis and
post-crisis periods. The effectiveness of these measures could be greatly improved by introducing
mechanisms that target disadvantaged youth and by piloting programmes and assessing their results
prior to their implementation on a larger scale. Funding for these measures should be increased to
ensure greater support during the post-crisis period. Lack of support for these employment measures
would have dramatic consequences for the current generation of young people.
Review the provision of employment services with the objective of offering a set of standard services
to all young people and more intensive assistance to disadvantaged youth. Public employment services
should re-orient their services to offer “standard” support to all young jobseekers (for example, self-service, group counseling and job search techniques, including employment planning) and more intensive
and targeted assistance for “hard-to-place” youth. Early interventions based on profiling techniques
and outreach programmes should be developed at the local level to make the services more relevant to
young people and to assist enterprises in the recruitment process. Partnerships between employment
services and private employment agencies are important to support young people in their job search.
Partnerships between labour offices and municipal authorities, the social partners, social services
and civil society organizations are required to improve the targeting of young discouraged people and
young workers engaged in the informal economy who do not usually fall within the reach of the public
employment service.
Pursue financial and macroeconomic policies that aim to remove obstacles to economic recovery:
Job growth will not come from labour market policies alone. Additional financial and macroeconomic
measures, including bank and debt restructuring, are needed to remove the obstacles to growth.
8
aNNeXes BiBLioGraPhie eT ressourCes ThéMaTiques suPPLéMeNTaires
Ressources additionnelles
Rapports et études
international Labour organization (2010): Youth employment: a
Global Goal, a National Challenge, august 2010
uN Capital Development Fund (2011): Listening to Youth
- Market research to Design Financial and Non-Financial
services for Youth in sub-saharan africa
Making Cents international (2011): “state of the Field in
Youth enterprise, employment and Livelihoods Development”,
February 2009
economic Commission for africa (2011): african Youth report
2011: addressing the youth education and employment nexus
in the new global economy, april 2011
Youthsave initiative (2010): Youth savings in Developing
Countries - Trends in Practice, Gaps in Knowledge
Documents clés
Making Cents international (2011): “state of the Field in
Youth enterprise, employment and Livelihoods Development”,
February 2011, pp. 1, 11-14, 16, 19-23
Making Cents international (2010) : etat du secteur de
l'inclusion financière des jeunes, juin 2010. en téléchargement
sur le Portail de la Microfinance francophone :
http://www.lamicrofinance.org/files/27042_file_etat_du_
secteur_de_l_inclusion_financi_re_des_jeunes.pdf
vivian ibania rivas schurer, robert Magala Lule, alice Lubwama
(2011): “Building sustainable Business Models for Youth
Financial services”, innovations in Youth Financial services
Practitioner Learning Program, The seeP Network, November
2011, pp. 1, 5-25
international Labour organization (2011): “Global employment
Trends for Youth: 2011 update”, october 2011, pp. 1, 4-11.
D’autres ressources thématiques sont listées en annexe du
rapport “state of the Field in Youth enterprise, employment and
Livelihoods Development”, 2011, Making Cents international
Sites internet
Making Cents international: http://www.makingcents.com/
Youth-inclusive Financial services Linkage Program (YFs-Link):
http://yfslink.org/
Child and Youth Finance international :
http://childfinanceinternational.org/
The seeP Network - innovations in Youth Financial services
Practitioner Learning Program :
http://www.seepnetwork.org/innovations-in-youth-financialservices-practitioner-learning-program-pages-60.php
The international Labour organization (iLo) :
http://www.ilo.org/youth
aNNeXes BioGraPhie
susana Pinilla est licenciée en anthropologie du développement
et détient une maîtrise en politique publique et gouvernance
ainsi qu’un diplôme en administration des entreprises. elle
est spécialiste des questions de développement en lien avec
l’emploi, l’inclusion, le multiculturalisme, la compétitivité et la
gouvernance.
Ministre du Travail et de l'emploi, puis Ministre de la Femme et
du Développement social au Pérou entre 2006 et 2008, susana
Pinilla a ensuite été conseillère du Président de la république de
2009 à 2011.
Pionnière de la microfinance dans son pays, susana Pinilla
est fondatrice et présidente de deux des plus importantes
organisations péruviennes spécialisées dans l'inclusion
financière : l’oNG idesi Nacional et l’institution de microfinance
Proempresa.
© Proempresa
aNNeXes ParTeNaires
établie en 1920, la Banque de Luxembourg offre aux
investisseurs privés et institutionnels son expertise en
gestion de patrimoine en europe et au Luxembourg. Le
conseil en philanthropie prolonge l’engagement de la
banque aux côtés de ses clients pour mener à bien leurs
projets à toutes les étapes de leur vie. son savoir-faire et
sa philosophie en gestion d’actifs sont particulièrement
adaptés aux besoins des fondations qui recherchent une
performance régulière sur le long terme, doublée d’une
protection de leur capital et de leurs niveaux de dotation.
La banque offre également une gamme complète de
véhicules d’investissement spécialisés en impact financing,
qui reflètent la compétence de la Place financière
luxembourgeoise en matière de fonds d’investissement.
La Banque de Luxembourg s’est de tout temps
comportée en acteur responsable et engagé au sein de la
communauté luxembourgeoise. elle a tout particulièrement
souhaité contribuer au développement au Luxembourg de
la philanthropie, de l’entrepreneuriat social et de l’impact
financing. Le soutien qu’elle apporte à aDa dans le cadre
des Midi de la Microfinance s’inscrit dans ce contexte.
Banque de Luxembourg
14, Boulevard royal
L-2449 Luxembourg
Tél: (+352) 499 24-1
Fax: (+352) 499 24 55 99
www.banquedeluxembourg.com
www.philanthropie.lu
La Coopération luxembourgeoise au développement
se place résolument au service de l’éradication de la
pauvreté, notamment dans les pays les moins avancés.
ses actions s’inscrivent prioritairement dans la mise
en oeuvre - d’ici 2015 - des objectifs du millénaire
pour le développement. ainsi les principaux secteurs
d’intervention de la coopération relèvent du domaine
social : la santé, l’éducation, y compris la formation et
l’insertion professionnelle et le développement local
intégré. Les initiatives pertinentes dans le domaine de
la microfinance sont encouragées et appuyées, que ce
soit au niveau conceptuel ou au niveau opérationnel. La
Coopération luxembourgeoise offre notamment son appui
financier pour l’organisation des Midis de la microfinance
au Luxembourg.
Ministère des affaires étrangères-Direction de la
Coopération
6, rue de la Congrégation
L-1352 Luxembourg
Tel. (+352) 247-82351
Fax. (+352) 46 38 42
www.mae.lu/cooperation
FR
ADA, PARTENAIRE DE CHOIX
POUR VOS PROJETS EN MICROFINANCE
NOTRE RÔLE, NOTRE MISSION
ADA est un partenaire de choix pour l’appui au développement autonome des populations exclues
des services financiers traditionnels. Depuis plus de 15 ans, ADA a pour mission d’initier et de
développer de nouveaux produits de finance responsable adaptés aux individus des pays en développement. ADA accompagne les organismes intermédiaires desservant les clients - les institutions
de microfinance (IMF) - dans leur processus de développement. Les programmes gérés par ADA
touchent 400 IMF à travers le monde, soit 10 millions d’individus.
A l’origine, la microfinance consistait à donner à des personnes économiquement vulnérables le
coup de pouce indispensable pour développer une activité génératrice de revenus, ceci en préser
préservant la dignité et l’autonomie. Aujourd’hui, la microfinance porte la vision d’un monde où tous les
ménages à bas revenus disposeraient d’un accès permanent à des services financiers de qualité,
adaptés à leur situation.
NOTRE MANDAT AVEC LA
COOPÉRATION LUXEMBOURGEOISE
«LepartenariatavecADAsedistingueparsavocationàprendreàbraslecorpslesproblèmesdesIMFenamonteten
aval.Dèslors,iln’estpasétonnantqu’ADAsoitco-fondatrice
ADA a signé un mandat de cinq ans (2007-2011) avec la Coopération luxembourgeoise, en vue de la réalisation d’un impor
important programme d’actions en microfinance. Le programme, doté
d’une enveloppe globale de 18 millions d’euros, s’articule autour
de trois axes : le renforcement des capacités des IMF, l’innovation en matière de finance inclusive et la gestion des connaissances en microfinance.
d’autresorganisationsluxembourgeoisesgravitantautourdela
microfinance,tellelaTableRondedelamicrofinance,
Luxflag,ouencore,leLuxembourgMicrofinanceand
DevelopmentFund.ADAaétéetrestefidèlementànoscôtés,
avecsesidées,sescontactsetsesconseils.»
Marie-Josée Jacobs, Ministre de la Coopération au Développement
(Luxembourg, 2010)
HISTORIQUE : UNE ONG PIONNIÈRE
Créée en 1994, ADA compte parmi les ONG pionnières de la microfinance au Luxembourg. Les
fondateurs d’ADA étaient des privés qui souhaitaient mettre leur expertise financière au service
de la lutte contre la pauvreté. Soucieux de respecter l’autonomie des populations, ils privilégièrent
l’appui aux institutions de microfinance dans les pays en développement plutôt que l’assistance.
Cette conception donna son nom à l’association, Appui au développement autonome.
SOUS LE HAUT PATRONAGE DE SON ALTESSE
ROYALE LA GRANDE-DUCHESSE
«Lacharitéetl’assistancedemeurerontindispensablesaussi
loinqueseportenotreregard,maisl’outildumicrocréditapportequelquechosedeneufenpermettantauxplusdému-
ADA bénéficie depuis 2007 du Haut Patronage de S.A.R. la
Grande-Duchesse Maria Teresa de Luxembourg. La GrandeDuchesse s’engage activement dans la lutte contre la pauvreté
extrême, notamment par la promotion d’initiatives dans les domaines du social business et de la microfinance.
nisderetrouverleurdignitéetd’apporterpareux-mêmesla
solutionàleurcondition.Ilsredeviennentpleinementacteurs
deleurvie.»
S.A.R. la Grande-Duchesse Maria Teresa
(Nairobi, 2009)
www.microfinance.lu
ORGANIGRAMME
Présidente d’honneur
Mia Adams
Conseil d’administration
Robert Wagener (Président), Dieter Hartwich (Vice-président),
Max Meyer (Vice-président), Philippe Onimus (Vice-président),
Corinne Molitor (secrétaire), Mark Cunningham, Karin Faber,
Elmar Follmann, Henri Marx, Bram Schim van der Loeff,
Jacques Prost
Conseillers
Rémy Jacob, Patrick Losch, Michel Maquil, Bruno Obegi
Comité exécutif
Axel de Ville (directeur exécutif), Luc Vandeweerd (directeur
stratégique), Isabel Soares (directrice financière)
Chargés de programme
Véronique Faber (Réseaux et partenariats), Quentin Lecuyer
(Financement financement des institutions de microfinance),
Emma-Jayne Paul (Renforcement des capacités), David Quien
(Recherche et développement)
RÉSULTATS FINANCIERS 2009
Budget annuel : 4,6 millions d’euros
Nature des ressources
Produits financiers
<1%
Autres produits d’exploitation
Produits sur programmes 3%
7%
Dons et cotisations
3%
PRODUITS
Subventions et co-financements
Produits sur programmes*
Autres produits d’exploitation
Produits financiers
Dons et cotisations
CHARGES
Dépenses directes sur programmes
Frais de personnel sur programmes
Frais de personnel administratif
Autres charges externes
Dotations aux amortissements et
provisions
Co-financements/
Autres bailleurs
de fond
15%
Ministère des Affaires étrangères
72%
Engagements à réaliser sur subventions/co-financements
Excédent de l’exercice
2009
2008
4 096 178
325 761
58 661
4 436
3 694 845
221 753
32 076
9 871
140 963
4 625 999
55 711
4 014 256
3 031 791
691 821
216 118
236 285
133 377
2 342 558
573 231
109 187
195 638
89 612
163 128
578 248
153 478
4 625 999
125 782
4 014 256
* Intérêts sur investissements, honoraires de consultance, etc.
COMMENT SOUTENIR ADA ?
ADA étant une ONG agréée par le ministère des Affaires étrangères, les dons versés sont fiscalement déductibles. A cette fin, ADA délivre à ses donateurs une attestation accréditant la réception du don. Pour effectuer un don en ligne, rendez vous sur le site Internet de l’association :
www.microfinance.lu
Le plan d’action, les comptes annuels et la charte de gouvernance d’ADA sont disponibles sur
notre site Internet : www.microfinance.lu
Pour toute information, envoyer un courriel à : [email protected]
ADA asbl Appui au développement autonome R.C.S. Luxembourg F199
2, rue Sainte Zithe L-2763 Luxembourg Tél +352 45 68 68 1 Fax +352 45 68 68 68
[email protected] www.microfinance.lu CCP LU64 1111 1189 2705 0000 BIC/Swift CCPLLULL
ÉCOUTE
CRÉATIVITÉ
QUALITÉ
INTÉGRITÉ
© ADA/Guy Wolff
http://midi.microfinance.lu
Pour compenser les émissions de CO2 générées par les impressions des publications,
ADA soutient des projets de protection de l’environnement à travers MyClimateLux.
ADA asbl
2, rue Sainte Zithe
L-2763 Luxembourg
G.-D. de Luxembourg
Tél +352 45 68 68 1
Fax +352 45 68 68 68
www.microfinance.lu
[email protected]

Entrepreneuriat des jeunes : tremplin pour le développement

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