Entrepreneurship solving Africa’s high unemployment rate problem

By Eden Sahle –

The increasing rate of unemployment represents both extensive unhappiness for individuals and lost economic opportunity for people and for the country over all.

On the other hand unemployment on the youth has been shown to have long term effects on income and employment stability because most youth start out with weaker early career credentials and lower confidence and flexibility in dealing with employment opportunities and setbacks over the course of their working lives.

Many employers are doubtful about young people’s ability to apply the skills they learn in universities to the practical challenges of the workplace. They also question the social skills and work ethic of youth.

They see these shortfalls as a substantial barrier to the productivity of inexperienced young people, and at the same time they are hesitant to invest resources in training young people when more experienced adult workers are available for hire even at a much senior age.

In Africa,  shortage of entrepreneurial skills, coupled with lack of confidence, effective and innovative ideas decrease the rate of youth start-ups. The huge gap of skill difference and pricey and time taking process of company creation continue to be an impediment from encouraging entrepreneurship in the continent.

Ethiopia is not an exception to this setback. Experts suggest that reducing high cost of company establishment, support in proper training will make start-ups successful than grants. For any country to quickly develop, it’s vital that the people should be able to have a decent life at least affording basic needs of life.

Most African countries education system is failing to prepare the educated youth to entrepreneurship and employment areas. Students graduate without having marketable skill increasing the burden the continent already have in excess.

On the other hand although students have marketable skills the employment market is heavily saturated that there is no opening to get employment. With the growing number of skilled human power seeking job on the market and employment opportunities could not cope with the demand.

However, the growing number of foreign direct investment flow and the new companies hiring fresh graduates is supporting the employment sector. African countries, including Ethiopia, started vocational training schemes and small and micro enterprises funding to ease the burden of unemployment.

It is universally recognized that entrepreneurship supported by the state providing an initial capital and consultation service will massively decrease the high rate of unemployment.

Empowering the youth to come up with innovative ideas, providing solutions for themselves and others, will create job opportunities not only for themselves but also to many others.

Entrepreneurship not only creates job for founders but also increases their income allowing for further development of the idea.

To develop entrepreneurship countries has a lot to do to educate and encourage the youth to have a startup of their own overcoming risks. Education institutions should stipulate a proper entrepreneurship studies system to encourage innovation not only to solve employment problem but also to bring up and to support overall country level economic development.

Similarly, countries have the responsibility to protect the youth and the time and resource invested in educating the use to keep the youth within the country providing a solution instead of seeking employment overseas.

Brain drain continues to affect Africa for decades mostly due to lack of opportunities within the countries. Hence, retaining opportunities and supporting the youth with ideas will aid Africa’s initiative to be a developed a continent.

Source: FBC


  1. Small businesses ALWAYS provide more employment opportunities for the people. in America, 85% of jobs are provided by small businesses.

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