The Young and the Enterprising

By Sandra Tam

With the general decline of ‘good,’ secure, well-paid jobs, today’s young workers are exploring less traditional career paths and employment arrangements. Self-employment is an increasingly popular employment option for youth. But are these ‘good’ jobs? The goal of this research project was to address this question by describing and analyzing the experience of self-employed youth with a focus on youth with businesses in the Information Technology sector. Human Resources Development Canada funded the project and a team of youth researchers at the Ontario Association of Youth Employment Centres conducted the study. Forty-seven self-employed youth in Ontario were interviewed. The results provide mixed conclusions about the quality of work and economic feasibility of self-employment for youth. The following are some highlights of the study with implications for career counsellors.

Generally, the young entrepreneurs interviewed were very well spoken, enthusiastic and optimistic about their work. The participants were supported by a number of conditions. About three quarters of the youth were self-employed without employees (72% of participants), more than half work at home (57%), more than three quarters live with parents or partner (79%) rather than alone, almost half used their personal savings as a main source of capital and about two thirds have high levels of education (64% have graduated from post-secondary education). Youth without these kinds of supports in place may have a harder time launching a business.

This group of youth displayed great flexibility and resourcefulness. Participants use a wide range of skills to run their businesses. The youth felt their computer/ technical, business management, and interpersonal or communication skills were their most valuable assets.

Self-employment requires a large investment of time and energy. This group of youth works an average of 59 hours a week. With such a heavy workload, many found it difficult to maintain a balance between work and leisure activities.

A concern over the economic feasibility of self-employment led to questions around income and benefits. A large majority of the participants (88%) had a net income from self-employment of less than $35,000. Visible minority women fared the worst in terms of income, with 7 out of 8 participants making less than $25,000. Over half of the group supplements their self-employment income by working part-time, full-time or taking contracts. Almost two thirds of the youth interviewed had not made plans for training, medical insurance or pensions. These workers could be economically vulnerable should an accident or illness occur.

Despite a thorough recruitment process, members of equity target groups, young women, youth with disabilities, Aboriginal and visible minority youth, were not well represented in the study. These groups may not be well connected with traditional business networks, associations or government programs. Participants noted a lack of gender and ethno-racial minority balance in the information technology field. Visible minority women (seven out of eight), more than other youth, acknowledged that they had encountered discrimination in their experience of self-employment.

Recommendations to Youth from Youth

These are recommendations young entrepreneurs running computer-based businesses in this study give to other youth who are thinking of becoming self-employed.

1. Do research
   Research the market, learn how to create a business plan, and learn the practices of established companies within the chosen industry.
2. Acquire business skills
   Learn and apply business skills including financial management, business planning and marketing. If business skills are weak or lacking, aspiring entrepreneurs may have to get a partner or hire someone who has those skills.
3. Do financial planning
   Take time to obtain start-up money. Plan to have enough money for rent, equipment purchase, living expenses and business start-up capital. Costs associated with marketing and promotion will also need to be covered.
4. Develop support networks
   Establish support networks of mentors, advisors, or peers within the chosen industry sector.
5. Develop a Niche
   Attempt to find some kind of niche within the chosen industry sector. Have a business idea that is unique or at least is different from what others in the industry are doing.
6. Obtain a Post-secondary Education
   Aspiring entrepreneurs can apply “transferable skills,” such as research, time management, writing, and presentation skills, acquired through post-secondary education to running a business. In case of business failure, a person with a post-secondary education has a better chance of securing a decent job than someone with less education.

Implications for career counsellors and ways to support self-employed youth

There may be a number of actions career counsellors can take to assist youth in their career decision making and venture into self-employment based on the findings of this report.

Counsellors play a pivotal role in providing accurate and realistic information about self-employment to youth. This may involve describing the range of self-employment experiences, from the long hours, low pay to the self-fulfillment aspects. Counsellors routinely assess a client’s readiness for employment. Along the same lines, an assessment of readiness for self-employment would involve taking stock of resources available to youth clients to support self-employment. The recommendations made by the youth participants in the study can serve as a preliminary checklist to facilitate decision making.

For clients who have already decided be self-employed, counsellors can guide them to appropriate resources for financing, business support and programs (some websites below). This task will be less onerous should the recommendation to create a centralized, online resource network on self-employment proposed in the Prime Minister’s Caucus Task Force and the present report be implemented.

Counsellors may also be involved in the creation of networking opportunities and the identification of mentors for youth entering self-employment or the IT area using their connections in the community, paying particular attention to the recruitment of women, visible minorities, Aboriginal and persons with disabilities as mentors.

Lastly, to promote a positive image and challenge assumptions made of young workers, counsellors can encourage clients to speak about their experiences and struggles around work and finding work.

For a full version of the report The Young and The Enterprising, available in April 2000, please contact Sandra Tam at (416) 323-9557 or oayecst@interlog.com or visit the Ontario Association of Youth Employment Centres website at www.oayec.org.

Sandra Tam is the research coordinator at the Ontario Association of Youth Employment Centres. She has a Masters degree in Social Work and previously worked as an employment counsellor.

Links for Young Entrepreneurs

www.yea.ca
Young Entrepreneurs Association
An organization for networking and education for young entrepreneurs.

www.cybf.ca
Canadian Youth Business Foundation CYBF provides a loan, mentoring and on-line website program that support young people who are creating their own employment through entrepreneurship.

Young Entrepreneurs Program A provincial loan program administered by Ministry of Economic Development Trade and Tourism in partnership with the Royal Bank of Canada.

www.acecanada.ca
Association of Collegiate Entrepreners ACE operates university and college programs focused on the development of entrepreneurial values on over 38 campuses across the country.

Realm Magazine REALM is a career and entrepreneurship magazine for young Canadians.

Prime Minister Caucus Task Force This Task Force will undertake public consultations and report back to the Prime Minister with recommendations on how to assist young Canadians make their way in an increasingly entrepreneurial economy. Self-Assessment: Are you an entrepreneur?
Test your entrepreneurship aptitude on-line.

www.cfib.ca
Canadian Federation of Independent Business
CFIB does research and advocacy for its membership of small and medium-sized enterprises. There is youth section on this site.

www.sedi.org
Self-Employment Development Initiatives
SEDI designs, manages and evaluates initiatives (including youth programs) that enable disadvantaged Canadians to achieve self-sufficiency through self-employment and asset and savings.

www.ccab.com
Canadian Council for Aboriginal Business
Canada’s leading organization dedicated to promoting the full participation of Aboriginal communities in the Canadian economy.

www.entrepreneurdisability.org
Entrepreneurs with Disabilities Network
A site for discussion of issues, strategies and projects to promote the concept of entrepreneurship among persons with disabilities.

Women Business Owners of Canada Inc.
WBOC is a national business association that represents the collective interests and concerns of women entrepreneurs across Canada.

www.wec.ca
Women Entrepreneurs of Canada
Women Entrepreneurs of Canada (WEC) is an organization offering women entrepreneurs an opportunity to profile, promote and meet with other successful businesswomen.

Last Updated on Monday, 02 March 2009 10:45