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Promoting Youth Entrepreneurship in Russia - Center for ...

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<strong>Promot<strong>in</strong>g</strong> <strong>Youth</strong><strong>Entrepreneurship</strong>CIPE’s youth entrepreneurship programs demonstrate the effectiveness notonly of our curriculum, but also of our ability to unite private and publicorganizations to support new bus<strong>in</strong>ess <strong>for</strong>mation. By launch<strong>in</strong>g new programs<strong>in</strong> key areas of <strong>Russia</strong>, CIPE <strong>in</strong>tends to strengthen the private sectorand promote adherence to the susta<strong>in</strong>able, transparent bus<strong>in</strong>ess practicesrequired <strong>for</strong> <strong>in</strong>ternational <strong>in</strong>vestment.The Challenge<strong>Russia</strong>’s youth represent an untapped source ofeconomic growth and prosperity. Literacy is high, butyouth unemployment and underemployment rema<strong>in</strong>stubbornly elevated as well. For most graduates ofvocational and technical schools, <strong>for</strong>mal sector entrepreneurshipis not a viable option because they lackthe relationships, skills, and necessary funds.The CIPE ResponseCIPE has effectively addressed these obstacles to<strong>for</strong>mal-sector entrepreneurship through its youthentre preneurship programs, translat<strong>in</strong>g a source ofeconomic and political volatility—unemployed youth—<strong>in</strong>to a <strong>for</strong>ce <strong>for</strong> stability. Over the course of fouryears, CIPE has completed six projects <strong>in</strong> <strong>Russia</strong>’sNorth Caucasus region, where the challenges fac<strong>in</strong>gyoung people are particularly severe. We are nowready to export these field-proven models to otherregions of <strong>Russia</strong>, work<strong>in</strong>g to strengthen the <strong>for</strong>malsector while educat<strong>in</strong>g a generation of bus<strong>in</strong>esspeople committed to the transparency and rule of lawrequired <strong>for</strong> <strong>in</strong>ternational <strong>in</strong>vestment.Our youth entrepreneurship approach has threeobjectives:Enhanc<strong>in</strong>g the bus<strong>in</strong>ess skills and economic knowledgeof those youth who show the potential <strong>for</strong>entrepreneurship by provid<strong>in</strong>g them with a betterunderstand<strong>in</strong>g of market systems and encourag<strong>in</strong>gthem to jo<strong>in</strong> the private sector.Stimulat<strong>in</strong>g the growth of regional micro, small, andmedium-sized enterprises by leverag<strong>in</strong>g economicand f<strong>in</strong>ancial support from local governmentsources to launch new firms.Improv<strong>in</strong>g the climate <strong>for</strong> bus<strong>in</strong>ess <strong>in</strong>vestment bymak<strong>in</strong>g young entrepreneurs more <strong>in</strong>fluentialmembers of the bus<strong>in</strong>ess community who can fullyengage with local government.In mov<strong>in</strong>g <strong>for</strong>ward with these projects, CIPE drawson two dist<strong>in</strong>ctive strengths—its extensive experienceworldwide develop<strong>in</strong>g successful programs that supportyouth entrepreneurship and its close relationshipwith local <strong>Russia</strong>n chambers of commerce.


CIPE <strong>in</strong> ActionCIPE’s partnership with the Chechnya Chamber of Commerce and Industry to deliverhigh-quality, <strong>in</strong>tensive bus<strong>in</strong>ess tra<strong>in</strong><strong>in</strong>g to youth epitomizes our approach. CIPE’SChechen partners chose students <strong>for</strong> the program on the basis of <strong>in</strong>terviews, academicrecords, and an eight-page application <strong>for</strong>m designed to measure motivation, potential,and need.The focus of CIPE’s tra<strong>in</strong><strong>in</strong>g is squarely on the practical and actionable. It is designedto help students start a real bus<strong>in</strong>ess, not just provide the skills to do so. Accord<strong>in</strong>gly,case studies and real-world examples <strong>for</strong>m the core of 96 hours of classroom <strong>in</strong>struction.Six academic modules <strong>in</strong>clude such topics as launch<strong>in</strong>g a new enterprise, strategicplann<strong>in</strong>g, f<strong>in</strong>ancial and economic literacy, entrepreneurship, and leadership andprofessional growth.Under CIPE’s approach, students start hon<strong>in</strong>g their bus<strong>in</strong>ess plans immediately, <strong>in</strong>most cases <strong>in</strong> consultation with their <strong>in</strong>structors. Once complete, the bus<strong>in</strong>ess planspass through a succession of reviews. They are assessed by advisory boards composedof chamber representatives, local entrepreneurs, and, significantly, at least one officialfrom a local government agency tasked with provid<strong>in</strong>g f<strong>in</strong>ancial support to small andmedium-sized enterprises. Under the CIPE model, those entrepreneurs whose plansare deemed viable by the advisory board receive further consultation from local bus<strong>in</strong>essleaders. The strongest proposals are eligible to receive government-providedseed grants, access to low-<strong>in</strong>terest loans, and the use of bus<strong>in</strong>ess <strong>in</strong>cubators.Local partnership is critical to the success of this approach. CIPE’s partners market theprograms extensively, establish advisory boards, lease space at local educational<strong>in</strong>stitutions, engage faculty, and encourage local bus<strong>in</strong>ess people to mentor youngentrepreneurs. They also secure written commitments from local governments pledg<strong>in</strong>gf<strong>in</strong>ancial support.Us<strong>in</strong>g this approach, CIPE to date has tra<strong>in</strong>ed 700 young people and helped w<strong>in</strong> theruble equivalent of $330,000 <strong>in</strong> government resources <strong>for</strong> program graduates to launchnew bus<strong>in</strong>esses. They ranged from retail trade and agriculture to consumer services.The Next StepCIPE is ready to br<strong>in</strong>g this successful model to other areas of <strong>Russia</strong>, especially to thosespecial economic zones <strong>in</strong> which mult<strong>in</strong>ational firms have been most active. In theseareas, it is critical that mult<strong>in</strong>ational firms have local partners that embrace and employthe best practices promoted by CIPE, thus improv<strong>in</strong>g the overall bus<strong>in</strong>ess climate. Thegraduates of our entrepreneurship program have the bus<strong>in</strong>ess skills, the entrepreneurialspirit, and the values to make them reliable and trusted suppliers.Seen <strong>in</strong> this light, CIPE’s youth entrepreneurship program is a logical complement to<strong>in</strong>vestment <strong>in</strong> <strong>Russia</strong>. We <strong>in</strong>vite your guidance <strong>in</strong> help<strong>in</strong>g us select regions to launchour next programs and your support <strong>in</strong> mak<strong>in</strong>g them a success. Together, we can<strong>in</strong>crementally improve the climate <strong>for</strong> <strong>in</strong>vestment <strong>in</strong> these regions by encourag<strong>in</strong>g theemergence of a grow<strong>in</strong>g class of young entrepreneurs who understand the imperativesof global bus<strong>in</strong>ess.

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