Generation Enterprise

Co-Creating Businesses to Raise Slum Youth Out of Poverty

Location: Lagos and Ilesa, Nigeria; Delhi, India

Generation Enterprise (GEN):  A first-time grantee in 2014

GEN partners with at-risk youth to co-create and build sustainable businesses that develop skills, jobs, and wealth in slum communities in the urban and developing world.

The seeds of Generation Enterprise were sown in 2004 when co-founder Clara Chow met a young Nigerian who wanted to start a micro-finance bank for street youth.  Across the country, as many as 70% of young people are unemployed, and a huge percentage of the population lives in the slums. Chow teamed with Lily Rubin, a co-worker in McKinsey’s Social Sector Office on Economic Development, to implement the youth bank concept in Lagos.

After several years of field testing, refining, and re-testing ideas and method, Generation Enterprise developed a robust and successful model.  Experience revealed that slum youth are relatively risk-averse, even when they seemingly have little to lose. Rather, they highly value a steady, predictable income, and that concept became an integral element of GEN’s co-creation approach for business development.  Youth referred by local government and non-government partners are carefully screened and trained; the ideas of a subset are then selected as incubator projects and funded.

The youth founders receive coaching and are empowered to implement their plans.  The best projects get additional funding and embedded mentors to keep them going.  This approach has bred viable, multi-employee businesses that represent scalable potential.

 

For more information, see: http://www.generationenterprise.org/

GRANT SUMMARY AND PURPOSE

  • 2014:  $20,000 for a variety of activities.  The grant is to support hiring mentors (Business Development Officers) and provide seed capital to train 200 youth and then help 50 of them set up business incubators. Monies also cover some transportation and equipment needs in Nigeria.
  • 2016:  After a 1-year hiatus, another $25,000 to start 10 youth-run microenterprises and then convert 2-3 of them into new Social Mobility Enterprises (SMEs) that become self-standing entrepreneurial ventures. GEN will also run an academy to train local youth in management and entrepreneurship to engage more young people.
  • 2017:   $25,000 to cover funding for counselors and trainers to assist over 1,000 youth in Nigeria to upgrade their skills and professionalism to become self-employed domestic and service workers.
  • 2018:  $25,000 funds 25% of a project to support career counselors and trainers and adapt SkillNav software for use in Kenya (the software develops key successful work traits). Successful results will be the basis for a pan-Africa roll-out.

IMPACT

Transform ‘street youth’ into skilled workers and transform micro-enterprises into thriving community businesses employing additional workers.  Success will mean that income doubles for the unemployed and underemployed slum youth (up to $2/day).