Youth Business International (YBI) today launched a policy paper, co-authored with its member in Mongolia, Development Solutions. Together, they are calling for a concerted effort to support youth-led green and social enterprises as critical drivers of sustainable economic growth.

With approximately 10 million social enterprises globally generating around $2 trillion annually and creating nearly 200 million jobs, the potential for young green and social entrepreneurs to reshape the economy is immense. These young visionaries are uniquely positioned to tackle challenges like climate change and social inequality, often bringing innovative solutions that reflect their values and community needs. However, they face significant barriers, including limited access to funding, market penetration challenges due to consumer loyalty to established brands, and complex regulatory frameworks that can impede growth.

In response to these challenges and the urgent need for tailored support, YBI developed a Green and Social Entrepreneurship Toolkit in partnership with nine of our members (enterprise support organisations) from Africa, Asia, Europe and the Caribbean. The toolkit builds on YBI’s and our members’ knowledge and experience of what works and doesn’t work when supporting young green and social entrepreneurs and is aimed at enterprise support organisations (ESOs) who want to start or improve their support in this area. As it was co-created with YBI members from four different regions of the world, the toolkit is usable and relevant for young green and social entrepreneurs in various country contexts. It provides essential resources and practical guidance across six key areas: personal development, business ideation, business model development, business validation, legal and financial frameworks, and impact measurement.

To foster a vibrant ecosystem where young green and social entrepreneurs can thrive and contribute to sustainable development, immediate action is needed to dismantle systemic barriers. YBI and Development Solutions call for governments, financial institutions, and development agencies to:

• Create dedicated investment funds: Establish government-backed and international funds targeting young entrepreneurs starting green and social enterprises, accompanied by tax incentives for supporting investors.
• Subsidize sustainable production: Introduce financial incentives to help offset the higher costs associated with green production, facilitating access to eco-certifications for small businesses.
• Streamline regulatory frameworks: Develop tailored legal frameworks to create a supportive environment for green and social enterprises.
• Standardize impact measurement: Promote standardized frameworks for measuring and communicating the environmental and social impacts of businesses, alongside training and financial support for entrepreneurs.
• Integrate green and social entrepreneurship into education: Include green and social entrepreneurship skills in school curricula and adopt strategies to regularly collect, analyse and report data on green and social enterprises.

“Read our full policy paper ‘Incentivizing and supporting green and social business models amongyoung entrepreneurs to advance the Sustainable Development Goals’ here.