the case of albania · region 1 (kukes, lezha, shkodra) regional overview and opportunities for...
TRANSCRIPT
Self-employment as a viable solution for youth integration in the labor market
Kseniia Oleneva
The case of Albania
DEFINING SELF-EMPLOYMENT
Self‐employed person is a individual who own sole or joint business of the
unincorporated enterprise in which he/she works.
European System of Accounts (ESA)
Self‐employed individual is someone who does some work for profit or
family gains, in cash. A person can be an employer, own-account worker
or a person in the production of goods/services and household
consumption.
Organization for Economic Co‐Operation and Development (OECD)
DEFINING ENTREPRENEURSHIP
Entrepreneurship is the process of pursuing opportunities and mobilizing resources
needed to bring new ventures to reality
(Stevenson, 1990; Ireland, Hitt, and Sirmon, 2003)
Entrepreneurs - individuals who create new or explore existing market opportunities
and pursue their goals while bearing personal, professional and financial risk.
Entrepreneurship is a process of using private initiative to transform a business
concept into a new venture or to grow and diversify an existing venture or enterprise
with high growth potential. Entrepreneurs identify an innovation to seize an
opportunity, mobilize money and management skills, and take calculated risks to
open markets for new products, processes and services
(UNDP, 1999:1)
SELF-EMPLOYMENT
Opportunities vs
risks?
22% of GDP
34% of total employment
contribute to labor
market flexibility
higher employment
lead to less unemployment
work within the
informal sector
low wages
limited access to social
protection or social
insurance coverage
Agriculture sector
THE LABOR MARKET IN ALBANIA AND YOUTH UNEMPLOYMENT
39.8
28.3
15.4
11.2
0
5
10
15
20
25
30
35
40
45
2010 2011 2012 2013 2014 2015 2016 2017 2018
Figure 1: Unemployment rate by age group (%)
15-24 25-54 55-64 25-29 15+
Source of data: Instat
THE LABOR MARKET IN ALBANIA AND YOUTH UNEMPLOYMENT
25.7
50.4
36.6
7.9
16.4
11.7
37.9
2.2
22
28.5
31
29.6
0 10 20 30 40 50 60 70 80 90 100
Female
Male
Total
Figure 2: Youth NEET (15 -29) by status (%)
Unemployed Discouraged Fulfilling family duties Other reasons
Source of data: Instat (2018)
EDUCATION DIMENSION
21.4
39.134
15.3
21.6
28
0
5
10
15
20
25
30
35
40
45
Low education Secondary education High education
F igure 3 : Employment rate by educat ion leve l for yout h 15-24 (%)
Male Female
28.2 29.633.6
18.8
24.1
33.9
0
5
10
15
20
25
30
35
40
Low education Secondary education High education
F igure 4 : Unemployment rate by educat ion leve l for yout h 15 -24 (%)
Male Female
Source of data: Instat (2018)
SELF-EMPLOYMENT IN ALBANIA
29.8
21.2
12.2
0
5
10
15
20
25
30
35
40
Low education Secondary education Higher education
Figure 5: Percentage of self -employed in total employment by gender and education level
for youth (15-24)
Male Female Total
Source of data: Instat (2018)
SELF-EMPLOYMENT IN ALBANIA
38.635.8
34.232.4 32.8
37.8
42 42.6 41.6
19.121.8
17.7 17.6 17.2 17.6
25.7 26.824.3
0
5
10
15
20
25
30
35
40
45
2010 2011 2012 2013 2014 2015 2016 2017 2018
Figure 6: Percentage of self -employed in total employment by gender
Male Female Total
Source of data: Instat (2018)
SELF-EMPLOYMENT IN ALBANIA
15.5 15.213.3
11.4
14.415.8
20.321.7
25
5.8
18.2 17.7
11.513.1
7.7
10.612.7
17.7
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015 2016 2017 2018
Figure 7: Percentage of self -employed in total employment by gender (15-24)
Male Female
Source of data: Instat (2018)
MEASURES FOR REDUCING THE HIDDEN ECONOMY
Reducing taxes;
Reducing/tackling corruption;
Increasing effectiveness of business stimulations;
Increasing efficiency of the court system;
Implementing stricter laws.
Monitoring the Hidden Economy in Macedonia, Albania and Kosovo:
Trends, Policies and Options” (2018)
MAIN CHALLENGES FOR SELF-EMPLOYMENT
Lack of enabling policy, regulatory and institutional environments
Weak entrepreneurial environments, limited entrepreneurship and networking
opportunities, and limited access to markets;
Limited access to finance and investment opportunities;
Limited skills and knowledge.
REGIONAL OVERVIEW AND OPPORTUNITIES FOR SELF-EMPLOYMENT
39.9
9.86.82.5
24.1
16.9
Figure 8: Employment by sector (2015 -2017)
Agriculture
Manufacturing
Construction
Other Industries
Market services
Non-market services
Source of data: Instat
85,670
72,835
178,271
119,745
31,688
123,976
37,007
38,590
62,673
274,833
89,468
80,126
0 100,000 200,000 300,000 400,000 500,000
R1
R2
R3
R4
Figure 9: Employment by regions and sectors
Agriculture Manufacturing Services
REGIONAL OVERVIEW AND OPPORTUNITIES FOR SELF-EMPLOYMENT
Source of data: Instat (2016)
AGRICULTURE,
FORESTRY AND
FISHERIES SECTOR
33.1
TRADE, TRANSPORT AND
CATERING SECTOR
13.7
EXTRACTIVE,
PROCESSING, ENERGY
AND WATER INDUSTRIES
13.9
REGION 1 (KUKES, LEZHA, SHKODRA)
REGIONAL OVERVIEW AND OPPORTUNITIES FOR SELF-EMPLOYMENT
OTHER
COMMERCE,
TRANSPORT AND
CATERING
21.2
EXTRACTIVE, PROCESSING,
ENERGY AND WATER
INDUSTRIES
13.6
SCIENTIFIC,
PROFESSIONAL AND
TECHNICAL ACTIVITIES
10.4
11.8
CONSTRUCTION
REGIONAL OVERVIEW AND OPPORTUNITIES FOR SELF-EMPLOYMENT
REGION 2 (DIBRA, DURRES, TIRANA)
OTHER
COMMERCE,
TRANSPORT AND
CATERING
43.112.3
13.4
AGRICULTURE,
FORESTRY AND
FISHERIES SECTOR
EXTRACTIVE, PROCESSING,
ENERGY AND WATER
INDUSTRIES
REGIONAL OVERVIEW AND OPPORTUNITIES FOR SELF-EMPLOYMENT
REGION 3 (BERAT, ELBASAN, KORCA)
OTHER
COMMERCE,
TRANSPORT AND
CATERING
37.1
16.216.1
8
CONSTRUCTION AGRICULTURE,
FORESTRY AND
FISHERIES SECTOR
EXTRACTIVE, PROCESSING,
ENERGY AND WATER
INDUSTRIES
REGIONAL OVERVIEW AND OPPORTUNITIES FOR SELF-EMPLOYMENT
REGION 4 (FIER, GJIROKASTRA, VLORA)
OTHER
CONCLUDING REMARKS AND RECOMMENDATIONS
Livelihood self-employment Innovative entrepreneurship
• business incubators
and accelerators• trainings,
• access to finance,
• advisory and
mentoring services
• value chains
CONCLUDING REMARKS AND RECOMMENDATIONS
Livelihood and self-employment
• Labor policies need to have a specific focus on the most vulnerable groups of youth in low-income Regions
• Programs should aim to improve pricing mechanisms, product quality, and production technologies to reduce
costs and/or increase output and/or quality. Such interventions include efforts to improve knowledge and
upgrade technology, facilitate better access to equipment.
• To facilitate engagement of entrepreneurs in more transformative activities and/or to be integrated into value
chains. Bringing young entrepreneurs into local, regional and global value chains for increasing their access to
markets and generating new business opportunities ( involving in a processing of their basic produce, unite
small farmers into associations or cooperatives and increasing production volumes)
CONCLUDING REMARKS AND RECOMMENDATIONS
Innovative entrepreneurship
• Online and offline platforms, networks, hubs, and communities should provide support
services specific to youth, to facilitate the exchange of knowledge and to build business
relationships.
• Information and communication technologies (ICTs) can significantly support young
women and men in realizing entrepreneurial opportunities
• business incubators and accelerators to support entrepreneurship
ACTION ON YOUTH ENTREPRENEURSHIP AND SELF-EMPLOYMENT:
Engaging the public sector and
young people in the
promotion of youth
entrepreneurship and self-
employment
Facilitating access to markets,
networks, knowledge and skills
Facilitating access to
finance
Promoting an inclusive
environment for
entrepreneurship
CONCLUDING REMARKS AND RECOMMENDATIONS
• Special attention should be paid to eligibility, targeting, and profiling mechanisms;
adaptation of core interventions (training, access to finance, advisory and mentoring
services, and networking)
• Youth entrepreneurship promotion requires increased access to credit, business
regulation reform, and entrepreneurship programs that combine different types of skills
training advisory and mentoring services
• The role of the public sector would be to facilitate the emergence of business that
integrates livelihood entrepreneurs into more lucrative and transformative activities
In essence, self-employment is very much about human capital and the prime prerequisite above all should be to solidify the healthy
basis of a talent pool for growth in key systemic economic sectors…
24
THANK YOU