Introduce simplified regulatory and institutional frameworks specific to micro-enterprises and carry out awareness campaigns. This goes hand in hand with enhancing regulatory (empowerment) desks at the local government offices (district) level.
This recommendation is premised on the fact that research has shown that the lack of systematic structures in terms of promotion and raising of awareness has resulted in youth not taking advantage of certain financial opportunities, such as SIDO and the youth funds.
3.6. AWARENESS BUILDING
3.7.2. Promote flexible and innovative financing systems
INTERVENTIONS
This intervention seeks to provide an enabling environment that makes it easy for financial institutions to introduce new and innovative products into the market. These may include, for example: Support the establishment of a comprehensive variety of providers, products and technologies that best suit the specific needs of special groups and agribusinesses, particularly youth, women and SMEs. Options include lending smaller amounts and repayment flexibility that accounts for agriculture cycles and other specific needs. Create more “targeted” products that are specifically designed for MSMEs, including lending smaller amounts and providing repayment flexibility that accounts for agriculture cycles and meets the specific needs of agribusinesses. Special window for equipment financing firms: Equipment financing firms may not need to be governed and comply with all of the same requirements as commercial financial institutions, as they have a completely different offering. Options such as lease-to-own equipment and machinery arrangements should be explored. Options for the interest rate and the requirements of property to be used as collateral should be reduced. Although this can be argued as detrimental to responsible financial institutions, over time, the number of people will increase, and the bank again will meet its original profits. Identification of innovative alternatives to meet collateral requirements that are more easily available to the MSMEs. Alternative collateral arrangements could include equipment and machinery financing and lease-to-own equipment arrangements. Loan guarantee schemes can also serve to de-risk the provision of financing to SMEs and can be especially effective when linked with other BDS and technical assistance. [85]
PSSA awareness-building interventions should target the following areas:
Work with the government and industry associations to develop a communication strategy for policies, including sensitization programs like seminars, workshops, and guidance on media use. This will address the prevailing challenge where most of the population, including youth enterprises, are unaware of the existing national policies. As a result, policies are less communicated to the stakeholders effectively and on time. Work with government, industry associations, and youth groups to increase people’s awareness of policies and programs aimed at youth and provide them with the knowledge and skills needed for effective civic participation. Youth should also be helped to become aware of the policies that directly support them and their opportunities. The government and the media have a role to play in promoting a positive image of youth, using positive role models to inspire other young people to get involved and to show their elders the value of youth engagement. Support LGAs in raising awareness of the existing funding opportunities from the government and the private sector. Support should also target awareness of the processes for application. [83]
[84]
3.7. INTERVENTIONS TO IMPROVE YOUTH
AND MSMES' ACCESS TO FINANCE
3.7.1. Creation of systematic structures and partnerships
PSSA should consider working with the government and other organizations (including but not limited to NGOs) in the promotion of youth awareness of taking advantage of the existing financial opportunities e.g. SIDO and the Youth Fund (TAMISEMI), educating youth on these products and assisting them in acquiring the right requirements. Additionally, entities such as SIDO and the Youth Fund (TAMISEMI) should ensure that there is a youth product available which is developed based on realistic requirements for the youth and through which funds can be disbursed to youth groups via the banks and or even Mobile Network Operators (MNOs).
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Youth Enterprise Policy Analysis Report
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