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

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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

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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

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“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.

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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

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Brings together employers, jobseekers and related parties

Modules based on sectors / entrepreneurship

Brings together succesfull entrepreneurs and university students

Entrepreneurship Fairs

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Information Desks at Universities

• Carreer Consulting• Entrepreneurship opportunities• Informing about probable active

labour market programmes

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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.

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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.

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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.

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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.

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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

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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

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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

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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.

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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

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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