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Youth Entrepreneurship Contextand the Vision of Public Employment Service
TURKISH EMPLOYMENT AGENCY (İŞKUR)
Yasemin Özüm BOZKURTEmployment Expert
Stockholm, SWEDEN; 24-25 April 2014
The Overview of Youth Labour Market in Turkey
Entrepreneurship Context in Turkey and an Alternative SWOT Analysis
Public Employment Services Targeting Youth
What Works Best – Country Experiences
CONTENTS
2
Youth Labour Market
3
Years PopulationLabour force (Thousand
People)
Employment (Thousand
people)
Unemployed (Thousand
people)
Labour force participation
rate (%)Unemployment
rate (%)Employment
rate (%)Not in Labour
force (Thousand
People)
2000 12.703 5.401 4.696 705 42,5 13,1 37 7.302
2001 12.641 5.323 4.460 862 42,1 16,2 35,3 7.318
2002 12.520 5.116 4.135 980 40,9 19,2 33 7.404
2003 12.379 4.753 3.777 975 38,4 20,5 30,5 7.626
2004 11.840 4.474 3.554 919 37,8 20,6 30 7.366
2005 11.757 4.436 3.554 881 37,7 19,9 30,2 7.321
2006 11.670 4.365 3.533 832 37,4 19,1 30,3 7.305
2007 11.583 4.364 3.493 871 37,7 20 30,2 7.218
2008 11.490 4.381 3.484 897 38,1 20,5 30,3 7.109
2009 11.513 4.454 3.328 1.126 38,7 25,3 28,9 7.059
2010 11.548 4.426 3.465 961 38,3 21,7 30 7.122
2011 11.534 4.529 3.697 832 39,3 18,4 32,1 7.005
2013 11.574 4.422 3.647 775 38,2 17,5 31,5 7.152
2014* 11.563 4.584 3.727 857 39,6 18,7 32,2 6.979
Source: TurkStat* 2014 January
Youth Unemployment Trends in EA-EU
4
5
Active Labour Market Programmes are covered vocational training courses, job and vocational trainings, on the job trainings, public works and entrepreneurship training programmes.
Public employment services widely carry out entrepreneurship training programmes as a tool for reducing unemployment. This policy creates both high level of entrepreneurship skills and sustainable entrepreneurship eco-system.
İŞKUR allocates 1,8 billion TL for active labour market programmes in 2014.
Entrepreneurship as a Labour Market Policy
Entrepreneurship Context in Turkey
6
Efficiency-driven economy to innovation driven economy
High impact enterprises
Public and Private institutions, NGOs to develop entrepreneurship
An Alternative SWOT Analysis of Youth Entrepreneurship in Turkey
7
WeaknessesStrenghts
Opportunities Threats
Total early stage entrepreneurs in Turkey, GEM
8
Source: Global Entrepreneurship Monitor
Proportion of Entrepreneurs by Age Group
9
Age Group 2010 2011 2012
15-19 0,1 0,1 0,1
20-24 2,7 2,3 2,1
25-29 10,0 9,5 9,2
30-34 16,8 17 16,8
35-39 17,1 17 18,1
40-44 17,2 17 17,7
45-49 13,5 13,2 12,9
50-54 9,4 10,1 9,7
55-59 5,8 6,8 6,3
60-64 3,8 3,5 4
65 + 3,5 3,5 3,2
Source: TurkStat, 2014
GEDI 2013 Country Excerpt for TURKEY
10
Index Turkey’s Score/Rank
The Best Score
The Worst Score
Overall GEDI Score 0,32 0,67 0,07
Rank in Global Competitiveness Index 2011-2012 59 1 142
Rank in Economic Freedom Index 2011-2012 87 1 179
Global Entrepreneurship and Development Index rank 45 1 118
Entrepreneurial Attitudes sub-index rank (point): 48/0,35 1/0,73 118/0,04
Entrepreneurial Action sub-index rank (point): 57/0,28 1/0,73 118/0,09
Entrepreneurial Aspirations sub-index rank (point): 35/0,34 1/0,63 118/0,02
Weakest pillar to improve (value): PROCESS INNOVATION
Source: Global Entrepreneurship &Development Index Turkey 2013
GEM Indicators
11
Index 2006 2007 2008 2010 2011 2012
International Orientation early-stage Entrepreneurial Activity 17 17 21 - 9 15
New Product early-stage Entrepreneurial Activity 65 70 87 - 68 60
Growth Expectation early-stage Entrepreneurial Activity: Relative Prevalence 44 61 32 - 44 43
Informal Investors Rate 3 4,7 4,8 - 5,1 9,1
Total early-stage Entrepreneurial Activity for Female Working Age Population 3,5 2,4 2,4 3,7 7,2 6,9
Total early-stage Entrepreneurial Activity for Male Working Age Population 8,5 8,7 9,4 13,5 16,5 17,5
Improvement-Driven Opportunity Entrepreneurial Activity: Relative Prevalence 23 35 41 47 45 55
Necessity-Driven Entrepreneurial Activity: Relative Prevalence 29 36 39 37 32 31
Total early-stage Entrepreneurial Activity (TEA) 6,1 5,6 6 8,6 11,9 12,2
New Business Ownership Rate 4 3,7 3 5,1 6 5,4
Nascent Entrepreneurship Rate 2,2 1,9 3,2 3,7 6,3 7,3
Know Startup Entrepreneur Rate 34 34 31 - 25 34
Entrepreneurial Intention 20,1 19 20,8 19,4 8,5 14,7
Fear of Failure Rate 27 23 34 25 22 30
Perceived Opportunities 34 39 36 36 32 40
Source: Global Entrepreneurship Monitor
12
“Every job seeker and every employer has a job and vocational counselor”
Public Employment Services Targeting Youth
Within the Job and Vocational Counseling services;
• Vocational Information and evaluation of individual competencies
• Vocational guidance
• Orientation to Entrepreneurship or vocational training courses
• Job placement
• Support for job orientation
• Counseling services for entrepreneurs
• Vocational information seminars at schools.
Thus,
• Shortening unemployment period
• Increasing job creation, employment and productivity
• Sustainable employment and entrepreneurship ecosystem are targeted.
The problem of asymmetric information which is one of the most important problems of labor market will be solved by means of counseling services.
13
Success in the profession takes place with the selection of the appropriate professional skills.
İŞKUR vocational orientation tests
İŞKUR The Journal of Support to Vocational Choice
University Contact Points
İŞKUR, EUROGUIDANCE Country Representative
Career Days and Employment Fairs
Activities related to Skills Matching for Youth
14
Brings together employers, jobseekers and related parties
Modules based on sectors / entrepreneurship
Brings together succesfull entrepreneurs and university students
Entrepreneurship Fairs
15
Information Desks at Universities
• Carreer Consulting• Entrepreneurship opportunities• Informing about probable active
labour market programmes
16
Entrepreneurship Training Programmes
Entrepreneurship training programmes are delivered to help those registered in the Institution establish and improve their own businesses and enable them to apply Small and Medium Enterprises Development Organisation (KOSGEB) New Entrepreneur Support
It is delivered to people who are registered to the Institution, are willing to benefit from entrepreneurship training programme, undergo evaluation processes developed by the Institution and are found acceptable for benefiting from this programme within job and vocational counselling services.
17
Entrepreneurship Training ProgrammesParticipation Conditions
Conditions are as follows:
• Unemployed and registered to the Institution (except for the retired),• At least 18 years old,• Not having benefited from the same module in the Entrepreneurship
programme before.
“Applied Entrepreneurship Training Participation Certificate” is given to participants. This certificate is a document that can be used to apply KOSGEB New Entrepreneur Support.
18
Entrepreneurship Training ProgrammesParticipation Conditions
Each participant attending programmes;
• receives trainee compulsory expense (20 TL), whose amount has been determined by the Administrative Board of the Institution, for each actual training day they attend.
• In the course of the programme general health insurance premiums and insurance of occupational accidents and professional diseases premiums of participants are paid.
19
Entrepreneurship Training ProgrammesContent of Training
In trainings; applied and interactive techniques like sample case, exercise etc. are used. In workshops, analysis/research studies realized by the participants are evaluated together with the other examples that the trainer would present. Success stories of successful entrepreneurs may be included in trainings.
These trainings are composed of four modules; 1st Module: Examining entrepreneurship qualities, developing business ideas
and exercises on creativity – 8 (eight) hours, 2nd Module: The concept of business plan and its components (market research,
marketing plan, production plan, management plan, financial plan) - 18 (eighteen) hours,
3rd Module: Workshops for consolidation of business plan components (market research, marketing plan, production plan, management plan, financial plan) - 24 (twenty four) hours,
4th Module: Writing business plan and points to consider during its presentation - 20 (twenty) hours.
20
Entrepreneurship Training ProgrammesSome Statistics
2009 2010 2011 2012 2013 2014 -
5,000
10,000
15,000
20,000
25,000
30,000
1 319 906 921 910 61 -
4,707
13,605 13,127 13,023
916 19
3,599
10,540 12,348 12,143
781 19
8,306
24,145 25,475 25,166
1,697
Entrepreneurship Training Programmes in İŞKUR
Number of Programme Men Women Total
Source: Turkish Employment Agency – İŞKUR
21
Entrepreneurship Training ProgrammesSome Statistics
Age GroupsMen Women Total
2012 2013 2012 2013 2012 201315-19 381 310 215 171 596 481
20-24 2.705 2.453 1.652 1.639 4.357 4.092
25-29 3.453 3.426 2.256 2.280 5.709 5.706
30-34 2.818 2.795 2.731 2.548 5.549 5.343
35-39 1.901 1.986 2.448 2.372 4.349 4.358
40-44 1.141 1.133 1.745 1.707 2.886 2.840
45-49 507 560 873 878 1.380 1.438
50-54 160 229 326 405 486 634
55-59 45 85 81 114 126 199
60-64 15 33 15 23 30 56
65+ 1 13 6 6 7 19
Total 13.127 13.023 12.348 12.143 25.475 25.166
Source: Turkish Employment Agency – İŞKUR
The Distribution of Trainees by Ages, 2012-2013
22
Projects Targeting Youth
A) Promoting Youth Employment
EU-TR Joint IPA Project (Sep 2011-Sep 2013)
To reduce youth unemployment by implementing
ALMPs, local action plans, supporting
entrepreneurship and on the job training
Components:
Grant : € 24.133.081 (127 Projects Completed)
Service: € 1.947.680
23
Projects Targeting Youth
B) Growth with Decent Work for All: National Youth Employment
Program and Pilot Implementation in Antalya (South-West Turkey)
United Nations Millenium Development Goals Achievement Fund (Oct
2009-Dec 2012)
Budget: USD 3,980,000
Local Project with National outcomes.
To reduce youth unemployment among vulnerable young members of
migrant families and increase the participation of young women in the
labor force.
A National Youth Employment Action Plan lays the policy, budgetary and
institutional framework for this objective.
24
Projects Targeting Youth
National Youth Employment Action PlanObjective 1: Development of İŞKUR Capacity on youth employment
Performing periodic needs analysis of youthSocial Dialog MechanismsPVTEB effectiveness
Objective 2 : Strengthening Education-Employment RelationEasing of transition to Labor MarketOpportunities to gain experience
Objective 3 : Contribution of İŞKUR to Job CreationMonitoring and Sustaining youth employmentPromoting EntrepreneurshipDeveloping strong communication channels and supporting Entrepreneurship via legal ammendments
25
What Works Best
• Small and Medium Enterprises Development Organization’s facilities and entrepreneur support programmes
• The Union of Chambers and Commodity Exchanges of Turkey (TOBB) – Youth Entrepreneurship Counsil
• YES Model• Universities and NGOs • Global Entrepreneurship Week• National Entrepreneurship Counsil• National Entrepreneurship Action Plan• Developed financing mechanisms
THANKSTURKISH EMPLOYMENT AGENCY
DIRECTORATE GENERAL
Yasemin Özüm BOZKURT Employment Expert
ozum.bozkurt@iskur.gov.tr
www.iskur.gov.tr
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