Tunisia - Employment: "Teaching entrepreneurship in high schools", recommends Doris Hribernigg of UNIDO
17 May 2011
Read by 1442 persons
Doris Hribernigg of the United Nations Industrial Development Organization (Business, Investment and Technology Service Branch). Sent by the headquarters of the UN agency, in the context of a program on youth employment and migration funded by the Spanish government, she proposed to the transitional government the continuation of this project based on the recommendations and experiences acquired. Interview.
WMC: What are the recommendations you just mentioned?
Doris Hribernigg: Since 2009, we have been working on a youth employment program, and UNIDO's component concerns entrepreneurship. We have already accomplished a range of actions to support young project leaders from the formulation of the business plan to the implementation of the project itself. We have launched studies on investment potentials in the Gafsa and Kef regions. We are now starting a study on crafts and the possibilities of investing in and supporting the sector.
71 projects have already been formulated by young entrepreneurs in different areas of the country: Greater Tunis, Kef and Gafsa. We have contacted financial institutions to ensure that these projects can be financed. From the outset, we realized the constraints encountered by young people in the face of financing, especially since they do not have their own funds. No guarantee either, banks do not trust them, even if their projects are solid and bankable.
After agreements in principle from financial institutions, the problem of personal contributions, even if the capital is small, resurfaces and becomes a serious obstacle to the completion of projects.
How did you react to this situation?
Quite simply, we had a series of meetings with representatives of private financial institutions to study with them how to create a risk financing fund to finance the personal contributions made by young promoters in bankable projects. I worked on this issue throughout the week I spent in Tunis.
What results did you achieve and which private financial institutions were receptive?
We contacted many institutions, venture capital funds, SICARs, banks, and we are now seeking the support of private companies that could help finance this fund. The objective is to make it a sustainable fund, which means that we will grant loans at acceptable interest rates and which must, of course, be repaid.
It is a small venture capital fund but for small projects where equity should not exceed 5 to 10 thousand dinars for projects of 50 to 150 thousand dinars. The fund's capital should reach 3 to 5 MDT. This is a pilot project that will be launched in Gafsa and we will be able to generalize it to other regions and other countries later.
Is this the right time to launch such an initiative?
This is the right time to launch this initiative. The private sector and financial institutions have been receptive and are ready to be stakeholders in this fund, just as we have had the support of the public authorities.
You mentioned earlier the studies on investment potentials in the regions, what projects could be the most successful in Kef, Gafsa or Greater Tunis, in your opinion?
Several project ideas are underway in several areas: agro-industry, agriculture, tourism in Kef, renewable energies in Gafsa, automotive components and crafts, particularly carpets. We want to encourage promising sectors where markets exist and where we can easily sell products.
Young project leaders are very poorly informed about the capacities and demands of markets at the national, regional or international level. They are unable to "market" their products.
During a meeting in Kef, we were approached by young people who clearly called for support from the formulation of the project idea and business plan to the marketing of their products. They suffer from a lack of knowledge in management or market penetration. These young people suggested that there be a focal point for consulting when they encounter difficulties.
How could UNIDO help them at this level?
UNIDO has already been involved from the outset in this type of support, either through the training of trainers in support institutions or entrepreneurs. We intend to work along these lines; we also intend to launch actions through civil society, which is closer to the field and beneficiaries.
Don't you think there is another problem related to entrepreneurial culture as well, from historically marginalized regions where the spirit of private initiative has been lost and others where entrepreneurial culture is more developed?
That's true. We also intend to support entrepreneurial culture through a proposal to introduce an entrepreneurship option in the baccalaureate and in vocational schools to enlighten young people about the advantages of entrepreneurship, to arouse vocations and to show that there are other alternatives to fixed employment positions. This could be a program integrated into the school curriculum.
Many school dropouts embark on projects very often by force without really wanting to be entrepreneurs; they sometimes succeed. Others, who are lawyers or doctors, do not want to become them.
You mentioned 71 bankable projects, are any of them already underway?
Two projects have already been financed by banks, others are under negotiation, not to mention those that need support and guidance and access to financing. However, we are convinced that these projects, as soon as they find adequate financing, will be realized.
Did you find a response from the public authorities?
Our meetings with senior officials at the Ministries of Employment, Industry, Regional Development and Agriculture have been very encouraging. They show a strong willingness to encourage and support young entrepreneurship.
We discussed the business climate in the 5 priority regions which may not be the most favorable. We need to review how to attract investors. In the regulations on investment in Tunisia, everything was done at the national level, without taking into account regional specificities. The diversities at the regional level should be taken into account, there are some very rich ones, such as Le Kef which has great resources, and others which are not even at the level.
On the other hand, information does not get through, young people are unaware of the facilities and support available to them. The transitional government is determined to do everything possible to support young initiatives.
Do you think young people are entrepreneurial enough?
Those we talked to in Kef were very interested, they had their projects and seemed determined. They criticized the administrative formalities (paperwork).
That being said, we should not force those who do not have the vocation to become entrepreneurs.
Why choose Tunisia to launch the risk fund for personal contributions from young project leaders?
Tunisia is a special country. When we launched the youth employment program, we wondered why we should support the Tunisian government, which said it had everything and didn't need much.
Good structures exist locally, and since the revolution, we believe that we can do more because there is more openness and flexibility towards the needs of young people, civil society, financing and initiatives from various sources.
Published May 11, 2011
Posted online May 17, 2011
webmanagercenter.com
WMC: What are the recommendations you just mentioned?
Doris Hribernigg: Since 2009, we have been working on a youth employment program, and UNIDO's component concerns entrepreneurship. We have already accomplished a range of actions to support young project leaders from the formulation of the business plan to the implementation of the project itself. We have launched studies on investment potentials in the Gafsa and Kef regions. We are now starting a study on crafts and the possibilities of investing in and supporting the sector.
71 projects have already been formulated by young entrepreneurs in different areas of the country: Greater Tunis, Kef and Gafsa. We have contacted financial institutions to ensure that these projects can be financed. From the outset, we realized the constraints encountered by young people in the face of financing, especially since they do not have their own funds. No guarantee either, banks do not trust them, even if their projects are solid and bankable.
After agreements in principle from financial institutions, the problem of personal contributions, even if the capital is small, resurfaces and becomes a serious obstacle to the completion of projects.
How did you react to this situation?
Quite simply, we had a series of meetings with representatives of private financial institutions to study with them how to create a risk financing fund to finance the personal contributions made by young promoters in bankable projects. I worked on this issue throughout the week I spent in Tunis.
What results did you achieve and which private financial institutions were receptive?
We contacted many institutions, venture capital funds, SICARs, banks, and we are now seeking the support of private companies that could help finance this fund. The objective is to make it a sustainable fund, which means that we will grant loans at acceptable interest rates and which must, of course, be repaid.
It is a small venture capital fund but for small projects where equity should not exceed 5 to 10 thousand dinars for projects of 50 to 150 thousand dinars. The fund's capital should reach 3 to 5 MDT. This is a pilot project that will be launched in Gafsa and we will be able to generalize it to other regions and other countries later.
Is this the right time to launch such an initiative?
This is the right time to launch this initiative. The private sector and financial institutions have been receptive and are ready to be stakeholders in this fund, just as we have had the support of the public authorities.
You mentioned earlier the studies on investment potentials in the regions, what projects could be the most successful in Kef, Gafsa or Greater Tunis, in your opinion?
Several project ideas are underway in several areas: agro-industry, agriculture, tourism in Kef, renewable energies in Gafsa, automotive components and crafts, particularly carpets. We want to encourage promising sectors where markets exist and where we can easily sell products.
Young project leaders are very poorly informed about the capacities and demands of markets at the national, regional or international level. They are unable to "market" their products.
During a meeting in Kef, we were approached by young people who clearly called for support from the formulation of the project idea and business plan to the marketing of their products. They suffer from a lack of knowledge in management or market penetration. These young people suggested that there be a focal point for consulting when they encounter difficulties.
How could UNIDO help them at this level?
UNIDO has already been involved from the outset in this type of support, either through the training of trainers in support institutions or entrepreneurs. We intend to work along these lines; we also intend to launch actions through civil society, which is closer to the field and beneficiaries.
Don't you think there is another problem related to entrepreneurial culture as well, from historically marginalized regions where the spirit of private initiative has been lost and others where entrepreneurial culture is more developed?
That's true. We also intend to support entrepreneurial culture through a proposal to introduce an entrepreneurship option in the baccalaureate and in vocational schools to enlighten young people about the advantages of entrepreneurship, to arouse vocations and to show that there are other alternatives to fixed employment positions. This could be a program integrated into the school curriculum.
Many school dropouts embark on projects very often by force without really wanting to be entrepreneurs; they sometimes succeed. Others, who are lawyers or doctors, do not want to become them.
You mentioned 71 bankable projects, are any of them already underway?
Two projects have already been financed by banks, others are under negotiation, not to mention those that need support and guidance and access to financing. However, we are convinced that these projects, as soon as they find adequate financing, will be realized.
Did you find a response from the public authorities?
Our meetings with senior officials at the Ministries of Employment, Industry, Regional Development and Agriculture have been very encouraging. They show a strong willingness to encourage and support young entrepreneurship.
We discussed the business climate in the 5 priority regions which may not be the most favorable. We need to review how to attract investors. In the regulations on investment in Tunisia, everything was done at the national level, without taking into account regional specificities. The diversities at the regional level should be taken into account, there are some very rich ones, such as Le Kef which has great resources, and others which are not even at the level.
On the other hand, information does not get through, young people are unaware of the facilities and support available to them. The transitional government is determined to do everything possible to support young initiatives.
Do you think young people are entrepreneurial enough?
Those we talked to in Kef were very interested, they had their projects and seemed determined. They criticized the administrative formalities (paperwork).
That being said, we should not force those who do not have the vocation to become entrepreneurs.
Why choose Tunisia to launch the risk fund for personal contributions from young project leaders?
Tunisia is a special country. When we launched the youth employment program, we wondered why we should support the Tunisian government, which said it had everything and didn't need much.
Good structures exist locally, and since the revolution, we believe that we can do more because there is more openness and flexibility towards the needs of young people, civil society, financing and initiatives from various sources.
Published May 11, 2011
Posted online May 17, 2011
webmanagercenter.com
