6 Reasons SMEs Matter for Youth

1. SMEs are laboratories for young talent.

SMEs act as “laboratories” where young individuals can experiment, learn, and gain practical experience. They can explore their skills, creativity, and entrepreneurial spirit within the dynamic SME environment. By allowing for trial and error, SMEs provide fertile ground for youth to test their ideas, develop competencies, and understand real-world challenges, thereby fostering innovation and growth.

2. SMEs foster learning by doing.

Youth employment in SMEs offers a unique opportunity for hands-on learning. Unlike large corporations with rigid structures, SMEs often have flatter hierarchies, allowing employees to engage in diverse tasks. Young employees can play multiple roles, from marketing to finance to operations. This exposure enhances their skills, adaptability, and problem-solving capabilities.

3. SMEs develop a range of hard and soft skills.

By providing practical training, SMEs teach young people not only technical skills but also a range of soft skills such as communication, teamwork, and adaptability, thereby nurturing a wide range of competencies that prepare them for future challenges.

4. SMEs inculcate an entrepreneurial mindset.

Young people working in SME settings witness firsthand how a business operates, faces risks, and innovates. They also learn how to identify opportunities, take calculated risks, and create value for customers.

5. SMEs contribute significantly to job creation.

By virtue of their sheer number and when they thrive, SMEs generate employment opportunities for youth, thereby making a significant contribution to job creation efforts. Thus, by supporting SMEs, policymakers and stakeholders indirectly invest in youth employment.

6. Fostering collaboration and networking.

Young employees interact closely with their colleagues, clients, and suppliers, thereby cultivating rich professional networks, exchanging ideas, and learning from each other.